Getting Vaporized Requires Distribution

LOS ANGELES — Scott Frohman at Vaporin ($VAPO) in a half-year has succeeded in getting this former gold company's nicotine vaporizers, e-cigs, oils and waxes into a lot of hands.

That is called distribution. The Miami CEO of the tiny company is here at LD Micro, and I just completed a 1 x 1 with the 46-year-old former Internet marketer.

Vaporin struck an accessories pact with another company the other day that sparked more than 2 million shares on the OTC changing hands. I own the stock, which is at 10 cents but 15 cents when I first bought earlier this spring.

I am in between meetings but can tell our TCR family that I am convinced, after seeing $200,000 of sales in two months, most from the NY tristate region, that this is real. The products are sublime.

I don't vaporize, but I can tell you vaporizers that use steam in sleek units that look like pens are the young generation's choice for inhaling.

The flavors look splendiferous — cucumber mint is up and coming, as is mojito. 

I know, I know. Do I want our kids using this stuff? Well, nicotine free is a Vaporin option.

Mr. Frohman, I think, gets it when it comes to his audience: "They don't want what their parents did — you know, Marilyn Monroe with a cigarette in her hand, smoke curling upward."

Vaporin raised $3.7 million recently at 10 cents, where the stock is now. No warrants. I know some of the investors. The vaporizers themselves cost $29.95 retail, and the company makes about $6 after having them made in China for $6. Everyone along the line, including high-powered distributors on the EAST COAST, right now enjoy 40 percent to 40 percent gross margins, as I understand it.

The key to all this for investors, if that is Vaporin continues to enjoy regulators' nods of approval about nicotine in liquid form — a risk for the entire $2.5 billion plus e-cig industry — is in how many venues Vaporin lines up for sales of the units, in three colors, the oils, replacement coils and canisters and so on. Eventually, he envisions, his team will enjoy more than half of all vaporizer sales online.

This is probably a screaming buy at 10 cents a share, or total $20 million market cap. Risk factor is a future consolidation of shares, but even then, if accompanied by a listing on the Nasdaq National Market, or elsewhere besides the bulletin boards, such a move might be splendiferous. We shall see. I am trying to purchase more VAPO.

MORE TO COME. Photos attached. Darn good micro cap show here at LD in LA. For our TCR family, I include the following Blip.

This from Mike Carr at Bitterroot Resources ($BTT:CA), which is planning a last-ditch drill effort in Michigan for platinum group metals: