Sunday, May 04, 2014

Top E-Cigarette Stocks

According to the May 2014 issue of Inc. Magazine, the electronic cigarette business is a $2 billion business, a fast growing part of the trillion dollar cigarette industry. As an example of how the demand for e-cigarettes are growing, in the United Kingdom, the use of the e-cigs since 2010 has tripled.

The reason for the demand is due to the belief that the e-cigs may be safer than regular cigarettes and the fact that there is no second hand smoke.

Now with the legalization of marijuana gradually expanding through the United States, a huge potential new market is on the horizon for these devices.

For investors looking to puff on the electronic cigarette stocks, there are almost ten to choose from according to the free list at The stocks seem to be divided in two categories, the large cap tobacco companies, and the small cap companies that specialize in the manufacturing and marketing e-cigarettes.

Vype is the brand name of the electronic cigarette produced by British American Tobacco (BTI), the second largest cigarette company in the world by revenues. The stock trades at 17 times earnings with a forward price to earnings ratio of 15. This company pays one of the highest yields of the major cigarette companies, with a distribution rate of 5.7%, paid semi-annually.

Lorillard (LO) has the blu eCigs brand in the U.S., and six months ago, the company bought the British electronic cigarette manufacturer, SKYCIG. The stock trades at 19 times trailing earnings and 16 times forward earnings. The stock yields 4.2%, payable quarterly.

In regards to the small cap companies, mCig (MCIG) has one of the largest market caps at $135 million. The company makes the Lifetech AirWell System. The company's latest reported quarterly revenues increased by over 580%.

If you want a free list of e-cigarette stocks, which has financial data and brands, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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