NJOY files for bankruptcy
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Hear, hear! NJOY were true public health heroesThese people were pivotal in bringing the FDA to their knees back in 2009/2010.
R.I.P. NJOY
Umm, in an almost completely unregulated market, they went from close to 50% of the cigalike market in 2012 to about 3% in 2016. Who would see this as a "buy opportunity" ? They had virtually no chance once BT entered the cigalike market in 2012/2013.
While there were some mentions of the deeming earlier, the push for deeming began around Feb. to May of 2012. The market anticipates such outcomes such as a favorable position for RJR/Altria/et al - hence the dive in market share for NJoy. One doesn't have to have a regulated market, only an anticipation of one, for the effect to occur. Same with many other industries with similar gov't threats.
Kinda hard to talk about Market Share percentages because you didn't site a Source. And Market Share numbers are only as good as the Extrapolations Method used to Guesitimate them.
In a Free Market, a failing Company could be Restructured. Cut off the Dead Wood like a Disposable division. Re-Formulate and Release a Better Tasting e-Liquid line. Roll out Old Pigs with New Lipstick on their Lips. Strike out in a New Direction like a Pod Mod. Do a Slick n' Glossy ad campaign more identifiable to your Target Audience. Lots of Stuff.
Or maybe someone would want to acquire NJOY just for their Physical Assets like Production, Filling, Distribution Capabilities?
There might be Many who think NJOY can be Turned Around if the Right hand was at the Helm. In a Free Market. Or even in a Lightly Regulated Market.
But this is All just a Mental Exercise in High Finance. Because we are Not in a Free Market. Or even in a Lightly Regulated Market. And the FDA's vision of the e-Cigarette Market stifles things like Building a Better Mousetrap or Competitive Competition.
Hence the "If" at the beginning of My post.
I remember trying to hope that it was a good sign that NJoy was moving forward with their own line of high end flavors. I remember trying to hope that it was a good sign that NJoy was coming out with their own line of non-cigalikes and refillable tank setups. I even remember thinking how great it was that Richard Carmona came on board, or that many high profile investors dumped money into the operation.
Now I don't know what to think.
Now I don't know what to think.
Indeed. They were the first cigalike that I actually kinda liked! Then I realized they hit like poop.
Those were probably good moves, but the huge investment in the disposable Kings likely wasn't. $30 for a 5-pack of disposables doesn't make economic sense from any angle at all.I remember trying to hope that it was a good sign that NJoy was moving forward with their own line of high end flavors. I remember trying to hope that it was a good sign that NJoy was coming out with their own line of non-cigalikes and refillable tank setups. I even remember thinking how great it was that Richard Carmona came on board, or that many high profile investors dumped money into the operation.
Now I don't know what to think.
What always amazes me about the vaping community is that they tend to live in a niche bubble, instead of reading about investments on investment sites, etc. to see how industries are doing.
Cash infusions? The $$ isn't there. That's because Peter Theil was one of the biggest investors at Njoy is one of largest shareholders in Palantir, the company who is being big-time sued by the US Dept. of Labor. (when you have $340 million of federal government contracts you have to be rather careful how you spend it
because they will watch )I somehow suspect that is why njoy didn't get another "investment banker type $ infusion".........not everything is just about vaping you know...
....all these larger companies are propped up by billionaires and millionaires who also have *investments* in other things........and when they all start to go south at the same time, the money dries up.
http://www.nytimes.com/2016/09/27/t...of-bias-against-asian-software-engineers.html
Personally, I don't expect things will go very well for Palantir so..........
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It depends.
While deeming regs are not good of ecig industry, keeping in mind that not all regulations are bad or actually discourage investors. (Impact Investing, for instance, has a bright future which is specifically due to putting together gov. regulations and IRS laws.)
*(Some things I would love to see more regulated, as there would be less puppy mills in missouri, for instance. AFAIC, they can just regulate those out of existence, except I'd much rather see these people go to JAIL
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