Landmark Victory for E-Cigarette Industry Against the FDA Leaves Plenty of Opportunities
Written by Staff and Wire Reports Alerts, FDA Updates Jan 22, 2010
3
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Buzz up!
Mobile Media Unlimited Holdings Inc
(OTC:MMUH)
If you don’t already know, the hottest new investment fad to hit Wall Street since mobile portfolio management can be summed up in two short words, “electronic cigarettes”. While your favourite celebrities may still be hitting the paper and casually smoking themselves closer to cancer and other complications, others are finding an easy escape to fulfill their niccotine desires in e-cigarettes. Though this technology has been around since 2003, first developed by SBT Co. Ltd., only a few companies have managed to step up and become publicly traded. Atop this investment opportunity lies Mobile Media Unlimited Holdings Inc (OTC:MMUH) who looks to follow in the foot-steps of Smokefree Innotec, Inc. (PINK:SFIO), Hop-On Inc. (PINK:HPNN), and Miller Diversified Corporation (OTC:MILR). Miraculously, this company has yet to announce the recent FDA news and its impact on the business model, thus leaving it as the most highly undiscovered investments of the four. Add the fact that they are the only profitable company in the mix, having their recently owned subsidiary, TzuFuma Inc. reporting unaudited revenues of nearly $5,000,000 in gross sales, and you have yourself a volcano waiting to erupt.
Government lobbyists under the
tobacco umbrella are being given billions of dollars each year while battling against the FDA (Food & Drug Administration), and in most cases, sadly, winning. There are those, however, who argue the other side of the road, stating that handing
tobacco regulation over to the FDA, as Congress is poised to do, is an epic public health mistake. It is tantamount to giving the keys of the regulatory store to the nation’s largest cigarette manufacturer, Philip Morris (NYSE
M). The
tobacco industry has long been hiding under its own shadow, using the fact that no one has officially announced the amount of chemicals and carcinogens and their effects on the human body. Cigarettes and their smoke contain more than 4,000 chemicals; among them are more than 60 known carcinogens, according to the American Cancer Society. But scientists say they can’t yet tell all they’ll learn from the new data because so little is known about how the chemicals combine to affect people.
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However, in 2010 all of this might change, causing a historic event, and perhaps one of the most important of our generation. The Food and Drug Administration is working to lift the smokescreen clouding the ingredients used in cigarettes and other tobacco products. In June, tobacco companies must tell the FDA their formulas for the first time, just as drugmakers have for decades. Manufacturers also will have to turn over any studies they’ve done on the effects of the ingredients. So, without further adieu, lets just get this out of the way, “It’s about bloody time!” In a recent press on January 18th, 2010, the FDA finally came to its own senses and decided to reveal the ingredients of the world’s #1 over-the-counter cause of human death.
New Opportunities
Now, what no one has really talked, and surprisingly so, is the fact that these e-cigarette companies may very well be the target of potential acquisitions or prime-time money partnerships from the likes of: Philip Morris International Inc. (NYSE
M), British American Tobacco (AMEX:BTI), Altria Group, Inc. (NYSE:MO), and Reynolds American, Inc. (NYSE:RAI). Think about it logically, as a highly profitable company, you’re generating billions of dollars in revenue each year, wouldn’t you want to buy out your competition and new technologies in order to further your wallets and market share? Moreover, it is common knowledge we would still have the cigarette addicts who fiend for the product, however, now you also take on a healthy aspect of it, tapping into a completely new industry leaving yourself with multiple layers of revenue streams. Yes, its true that some may argue these tobacco companies have different agendas and may want to maintain their pride, however in the end its all about money — that same reason you’re here reading this article with funds waiting to invest. If we can see the golden opportunity for this technology, surely the top tobacco companies are taking a mild consideration in it as well.
Financial Highlights
*All data provided via TzuFuma’s 11/01/2009 Summary of Business Operations
* Year to date , the Company’s performance has resulted with average sales of 9,700 kits per month at a price of $49.99 spread over 2
product lines and $19.99 for a standalone product.
* In addition, 15,000 refill kits spread over two product lines have been selling at an average price of $39.99 per refill kit.
* The Company has built its business primarily through selling product to numerous independent distributors, kiosk operators, retailers
and direct to customers through the Internet.
* Management estimates that immediate future demand for its products are approximately 150,000 kits per month spread over 3 product
lines.
* Year to date, the Company has generated just under $5,000,000* (Five Million USD) (*unaudited) in gross sales.
Technical Analysis
From a technical analysis standpoint, the stock couldn’t be more poised for a breakout. Volume bars have been higher and longer than the shorter red sell bars, RSI is beginning to trend above the 50 thus showing buying pressure, and as well displaying strong accumulation during the start of 2010. MACD divergence has also shifted positive, and full stochastics represents a similar pattern to the breakout which occurred mid-to- late December 2009. In fact, once it breaks the key resistance at 0.026, it enters the “blue sky” territory leaving it with a mild resistance near the 0.05 levels. We fully expect volume to continue as the story unfolds with this company. A new website should be up in the coming days displaying their product, press release is due to announce their position after the recent FDA events have unfolded, and TzuFuma’s unaudited financial statements for the period of 2nd Qtr-4th Qtr 2009 and early 2010.
We will have a full MMUH company profile and analysis available 1/24/10, with major announcements on 1/25/10.
Story is developing…
A wise choice. Get your money out, make a few bucks and let the rest ride. You never know, maybe you'll get lucky on one of them.
