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ISWH ~ International Spirits & Wellness Holdings Inc.

Discussion in 'Penny Stocks' started by StocksOnHighalert, Sep 17, 2019.

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  1. StocksOnHighalert

    StocksOnHighalert New Member

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    New Opportunity: International Spirits & Wellness Holdings Inc. (OTC:ISWH)



    To understand why ISWH is such an unusual and compelling object of study, one only needs to take note of three simple ideas:

    1. Shares of ISWH are cheap – really, really cheap – at less than a tenth of a penny per share, and below their major moving averages, with forward estimates of its Price-to-Sales ratio now near 0.5x
    2. According to recent trends and company releases, ISWH is about to post its first-ever EBITDA profitable quarter
    3. ISWH just reported 6,400% sequential quarterly revenue growth, and is just about to restart sales of an extensive line of products in an industry growing at 107% CAGR, to drive that growth rate even higher through year-end
    You could probably search through every stock on every exchange around the world right now and not find a more extraordinary mismatching of concepts. And the implication of this particular mismatch seems clearly to be “Opportunity” – the company is now doing far better in a tangible sense than is being reflected in the trading of its equity. It’s quite straightforward.

    At some point – possibly very soon – the proverbial “crowd” may come to the same conclusion and the mismatch may resolve itself, most likely through potentially dramatic price appreciation in shares.

    A detailed exploration of this premise follows below.

    Symbol: ISWH
    Company: International Spirits & Wellness Holdings Inc.
    Quote: http://finance.yahoo.com/q?s=ISWH
    Latest News: http://finance.yahoo.com/q/h?s=ISWH+Headlines


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    Who is ISWH
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    ISWH is about as interesting as a sub-penny stock can possibly be. The company has pivoted over the past 18 months, and is growing up rapidly in its new reinvented life.

    This story started as a company exclusively dedicated to high-end adult beverage production. The legacy of that identity is still in place with its Spirits segment in the form of its award-winning Mexican-distilled high-end tequila brand (Besado Tequila).

    But the big strategic shift for ISWH got traction at the end of Q3 2018 when the company’s management and board decided to begin investing in a Health and Wellness segment to include branded CBD products and home healthcare services.

    Between the two of them, we are talking about two of the most robust growth trends on the planet. And it’s paying off for the company in a big way.



    Here’s the big point: Home Health Care is in a boom and ISWH is demonstrating tangible financial performance in the space, leading to EBITDA profitability and 6,400% sales growth.

    That defines the company’s Q2 and Q3 of 2019. But Q4 is likely going to be defined by the company’s resumption of high volume sales of its P19 branded nano-infused CBD-based wellness products.



    ISWH Home Health Care Segment. Home health spending is expected increase at a faster rate through 2027 than all other categories of care, according to a recent analysis from the Centers for Medicare & Medicaid Services (CMS) Office of the Actuary.

    Home health care spending is expected to reach more than $186 billion in 2027, according to the report. This is miles above any other category of health care service, including hospital inpatient care, physician and professional services, nursing facilities, prescription drugs, retail sales of medical products and literally everything else in the space.

    Why? Because we are headed for a demographic sea change. According to the US Census Bureau, for the first time in the history of the US healthcare system, people over 65 years old will outnumber those under 18 years old within the next two decades. The monster generation we call the “baby boomers” is in a transition that will see all of them over 65 ten years from now. By 2030, over 20 percent of the US population will be over 65.

    In other words, we are officially an “graying society” in the US. Home health care goes hand in hand with that trend. 70 percent of home health care consumers are 65 and older.

    To boost this trend, we are developing tools and technology to make it easier and easier to support health care services outside of specialized facilities. This just opens the door to increase the number of care opportunities that can shift from the clinic or hospital and back into the home.

    Finally, both providers and consumers are starting to prefer home health care support as an option because it’s less costly. This is self-evident.

    [​IMG]
    Home Health Care is a structural growth trend driven by the shape of our society on a demographic, political, and technological level. And ISWH has been moving rapidly into this space as a provider. How has this worked out?

    This segment just drove 6,400% sequential quarterly revenue growth for ISWH and is well on its way to driving the company’s first ever profitable fiscal quarter (on an EBITDA basis). So, pretty spectacular when you look under the hood.

    And yet, the market hasn’t even noticed.

    Let’s say that again: this sub-penny stock just orchestrated a massive turnaround through a bold pivot that resulted in 4-digit percentage top-line growth on a sequential basis that is about to result in a quarterly report representing the breakout into EBITDA profitability, and the market hasn’t noticed… yet.

    Right now may be the opportunity to get on board before some sort of massive repricing shares takes place.



    ISWH CBD-Based Products. And then there’s the CBD business. No, this is not a fly-by-night late-comer trying to catch some investment bucks by playing on the popularity of the “CBD Theme” and pretending they have a real product.

    ISWH started selling CBD-based wellness products under the “P19” brand late last year. They have released P19 Nano-Infused CBD Tinctures, P19 vegan CBD Gummies, P19 CBD Pain Cream, P19 Nano Nectar CBD Drops, and P19 Flavored CBD Shooters.

    All of these products are manufactured in partnership with BioPulse Labs, a market leader in CBD nano-infusion technology and ecommerce marketing and distribution. This is some high-end stuff. Nano-infusion creates superior bioavailability for CBD in whatever form of application. And consumers know it. Survey after survey shows that consumers respond to nano-infusion and similar methods of ramping bioavailability in CBD-based products.

    ISWH pulled live sales of its products as it reconfigured its partnership and process with BioPulse. But investors should be extremely pleased to learn that things are starting back up. ISWH just announced that sales of its hemp-derived CBD products are set to resume imminently, ahead of the end of the month, and will be in full gear in Q4.

    This is big news.

    The CBD space has become known for dramatic growth prospects. That’s because it’s a small niche market in a big world full of lots of people who can benefit from it but who haven’t yet decided to try it out. All of those non-users are potential users in the future. And CBD has gotten onto stronger and stronger footing in that time in terms of mainstream reputation.

    The big change recently is that CBD-based products have started to appear commonly on the shelves of brick and mortar retailers such as Kroger’s, Macy’s, and Walgreens. That was not the case in 2018. This exposes more consumers to these products, and removes the sense of taboo by placing them next to more mainstream items.



    As a result, growth estimates have gone through the roof from top analyst firms. For example, Brightfield Group just put out a new research piece calling for a 107% CAGR over the next 4 years in CBD-based product sales also noted an acceleration into the back half of 2019 in sales of CBD-based products. That acceleration is all about a new and steeper trajectory of mainstream adoption.



    The main point here is this: ISWH already has a very well-developed and ready-to-ship inventory of its own branded CBD products made with market-leading technology and standards. And it just announced that those products are back on the market at full volume.



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    Recent Catalysts
    The list of recent compelling catalysts for ISWH is difficult to lay out because there’s honestly too much meat on the bone here to communicate in a brief analytic note. But we will try.



    Understand that the lack of recent positive movement in the stock is not a warning signal in this case as far as we can see. This is simply a stock that hasn’t garnered a lot of attention because it’s so cheap. Another way of saying it: ISWH is flying under the radar of most investors.



    But, in our experience, the type of mismatch we see here right now – a profitable company with strong growth already underway in tangible form that is under a tenth of a penny per share and below its major moving averages – can only persist for so long before finally being rectified. And the only way it gets rectified is by price appreciation.



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    To that end, we would highlight the big catalysts in play right now:

    • ISWH has been reinventing itself, and clearly successfully
    • Q2 was a breakout quarter, with huge revenue growth for the first time
    • Q3 is on its way to being an even bigger breakout quarter – the first EBITDA profitable quarter in company history
    • Q4 is lining up as a likely game-changer characterized by accelerating growth, multi-segment success and expanding profitability
    • The CBD line is being reintroduced on a bigger scale as growth explodes in the CBD space
    • The home health care segment is arming up to leverage its success through expansion
    • The company is on course to uplist following audited financial results


    This type of success is simply not consistent with the action on the chart. This is what “opportunity” looks like in its most obvious form.



    The most important point to make about ISWH is that it is a young company again – this is a rebirth following a pivot and rejuvenation. The balance sheet was cleaned up in the process, with current liabilities down to nothing now.



    From that state, the company is moving fast, first starting tangible sales growth, and then driving it higher, and now moving into profitability, with even greener pastures lying ahead over coming months.


    Technical Analysis
    As noted above, ISWH is really, really, really cheap. Based on what we have heard from the company, we can sketch out a rough price-to-sales ratio on a forward basis of about 0.53x. That’s excellent from a valuation standpoint.



    How it got that cheap on a fundamental basis is likely a story about the stock flying under the radar of the average investor scanning data and looking for opportunities. This is a classic turnaround play: shave the debt, pivot the model, hit the high-growth segmentation button, and go, go, go. And, in this case, it’s working. Bigtime. But the market hasn’t spotted it yet. So measures like p/s (and soon, p/e?) start to look almost too good to be true.



    But part of this story is a downward trend that may just recently be bottoming out on a technical basis. To make that case, we would point to its action around the downward trendline over the past couple weeks, and to action showing up on the major oscillators – most notably, huge bullish divergences on the RSI and MACD.



    We would also note the stock’s increasing volume as it establishes support at recent stable accumulation levels around $0.0005/share.

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    About ISWH
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    ISWH (International Spirits & Wellness Holdings Inc.) is an authorized importer, licensor, and marketer of premium beverage brands, with sales of innovative products and brands worldwide. The company is also a growing provider of CBD-based wellness products and home health care services.

    Based in Nevada, the Company’s expertise lies in the strategic development and aggressive early growth of its brands and the establishment of these brands as viable and profitable as an incubator. ISWH intends to nurture emerging brands through critical stages of market development, including conceptualization, go-to-market strategy, supply chain and logistics engineering, integrated marketing, and distribution.

    In addition, ISWH has now established itself as a health and wellness company with a focus on reshaping the CBD products market through state-of-the-art nanotechnology processes, developing a wide range of nano-infused CBD gummies and beverages formulations.

    These products will be sold through the Company’s website, as well as through established wholesale and retail distribution channels. The company has also partnered with Bengala Technologies to develop and commercialize enterprise and B2B software technology products targeting the logistics and supply-chain marketplace.

    Key Facts:

    • ISWH has guided its coming Q3 report to EBITDA profitability – a breakout quarter ahead of accelerating growth
    • ISWH is making real money, with trailing revs already coming in at $172K.
    • ISWH is about to reintroduce sales of its premium CBD-based product line as growth in the CBD space accelerates even further, to 107% CAGR, and 900% on a y/y basis
    • ISWH Home Healthcare segment has been growing by 40% on a sequential quarterly basis, and is set to accelerate into year-end
    • ISWH just broke its multi-month downward trendline as established a lateral base of support on increasing volume over the past 3 weeks – a possible bullish springboard
    • ISWH has built classic bullish divergences on both the RSI and MACD oscillators over the past 2-3 months, demonstrating the potential underpinnings of a reversal back to the upside
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    Conclusion

    To sum up this story and this opportunity, one must return to the original disproportionality noted at the outset of this piece: Namely, how can a company just turning profitable before figuring in interest, taxes, depreciation, and amortization and breeding massive top-line growth in three successful segments be trading publicly on the exchange at less than a tenth of a penny per share and at just 0.5X forward sales?

    The answer to that question is, we believe, the simple reality of a classic turnaround scenario on the OTC – the crowd just hasn’t noticed this business is succeeding. And, thus, the big score opportunity.

    That is our analysis. We leave it up to you to confirm through your own due diligence.

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    visit https://dailytrendingstocks.com/isw...sub-penny-opportunity-we-have-seen-this-year/
     
  2. pennies

    pennies New Member

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    what is the price targets for all 4 quarters of 2020?
     

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