$ISWH: Breakout Pattern, Tiny Float, Coronavirus CatalystsISWH is primed to rip.
The stock is flirting with a major breakout on a move about $0.50 in a perfect Bullish Ascending Triangle breakout pattern and a float of less than a million shares.
New Opportunity: International Spirits & Wellness Holdings Inc. (OTC:ISWH)
• Coronavirus is about to Blow Up According to Experts, with millions of new cases coming
• ISWH is an established a growing home healthcare player in 3 big cities, with 5 more on tap
• Home healthcare segment has shown 15,000% revenue growth over the past 6 months
• Metropolitan inpatient healthcare in the US is not prepared to handle what’s coming, which will drive a boom in outpatient care stocks like ISWH
• Trading at less than 1x sales on a float under 1 million shares, this Coronavirus play could see significant upside
Experts in epidemiology and virology are convinced that COVID-19, the disease caused by the 2019-nCoV virus that emerged in January from Hubei Province, China, is set to become a widespread pandemic that rages across the US over coming weeks, months, and unfortunately, years.
At present, there are likely only a few hundred cases. But the scientific establishment is unified in its conclusion that the containment paradigm has failed and an epidemic of massive proportions is already seeded and set to explode.
According to leading Harvard epidemiologist, professor Marc Lipsitch, as expressed in The Atlantic on February 24, as many as 40 to 70 percent of the world's population may contract COVID-19 within the next 12 months. Other leading epidemiology experts have made similar predictions, implying a dramatic jump in the number of cases of COVID-19 across most communities in the US over the next 12 months, before an effective vaccine can be created, tested, approved, and mass manufactured.
While the disease is not all that deadly (many experts believe the mortality rate will end up settling down to around 0.5% when we have robust data), the real problem is the overwhelming burden it will place on the US healthcare system, especially in densely populated areas like major US cities.
ISWH is a diversified holdings company, but its primary source of revenue growth over the past three quarters is its strong Home Healthcare unit, which has robust operations already running and in place in in several major cities in Texas, including Houston, San Antonio, and El Paso. The company also just announced that it is expanding this segment, establishing home healthcare operations in Nevada (Las Vegas and Reno), New Mexico (Santa Fe), Arizona (Phoenix), and Florida (The Villages).
The one thing we know for certain is this: home healthcare is about to experience a boom. The US House just passed a bill to provision over $8 billion for battling the epidemic, and a decent chunk of that money is likely to go to “auxiliary healthcare providers” to deal with overflow when the core healthcare infrastructure becomes overwhelmed and drowns in patient needs.
ISWH is an already-established player with well-developed operations, a trained and certified staff of CNA’s, and growing revenues in that space, and it’s expanding fast to meet this new opportunity head-on.
A conservative estimate suggests sales could boom from here on an expanded outbreak as operations ramp up in new markets. With a float under a million shares, once the crowd finds it, this stock may ramp up in a hurry. We dug deep to find this one and the crowd hasn’t driven it up yet. Now is the time to frontrun that action.
ISWH
$ISWH is Worth a Close Look as Stock Bases Amid TurnaroundISWH
International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) continues to position itself in a strong role in several high-growth markets. We would view this as a deep value opportunity for a few reasons, with each built of the same DNA in terms of market reasoning.
Besado Growth: First, the company produces an award-winning top-shelf tequila (“Besado”) that has seen a clear uptick in sales this quarter and has a strong seasonal tailwind for Q4, suggesting that the segment will contribute an outsized performance when the company comes to putting out its audited 10K for 2019 in a few weeks. That’s likely to surprise the skeptics and justify higher prices for shares.
Home Healthcare Growth: Second, ISWH is an emerging leader in the home healthcare space, with operations that have been rapidly expanding, including quadruple digit sales growth over the past six months, and projections for and expanded client base and headcount to service that growing list of clients along the way.
CBD Growth: Third, the main source of growth for ISWH is likely to be its potent CBD products segment, which is positioned for accelerating growth in 2020 following its landmark partnership with BioPulse Labs, a nationally-recognized brand development and manufacturing leader in the nano-infusion of CBD products, which is possibly the fastest growing major consumer market on the planet right now.
Right now, the chart would seem to agree with this analysis in terms of a loss of downside momentum. But the price remains at absolute bargain basement levels.
$ISWH Base Builds Following "Running" MACD Bull SignalISWH
This is a bit of an anomaly given the ultra-cheap price of the stock, especially considering that the company has posted gross profits for the past two quarters with huge sales growth in the mix.
All of that data is expected to further improve in Q4, after which the company has said it will post fully audited data to ensure it's turnaround can't be ignored.
All of that offers investors a chance now to get out in front of the shift in perception into year-end.
$ISWH Basing Pattern Complete as MACD RampsISWH
Who is ISWH
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. Now, we have a company heading for 3 consecutive profitable quarters on triple-digit sales growth, and now it is lining up a major new partnership to throw gasoline on that fire.
Big News
The company just announced a forthcoming agreement for the appointment of an exclusive manufacturing and marketing partner for the launch of five CBD-based wellness products, which will include a comprehensive branding refresh for the company’s P19 CBD-based products brand.
“While we cannot fully disclose the identity of the counterparty in this Agreement, we can state that this is a well-known, nationally respected firm that has in-house access to cutting edge technology and a competitive, nationwide marketing and distribution footprint,” stated Terry Williams, CEO of ISWH.
According to the release, we will find out the answer very soon because the company says it is working to expedite the signing of the final agreement. Once in place, all details will be revealed. Until that point – days? – the risk of some sort of issue caused by blow-back from interested parties on one side or the other of this bet is too great and there’s no sense in risking derailment of such an important deal.
The company goes on to note some specifics that should be stated here: “According to terms thus far established, the Partner will provide ISWH with procurement of five (5) trademarks, five (5) brand custom websites (each with online sales and payment processing system), five (5) brand social platforms (namely Facebook, Instagram, and Twitter), and five (5) brand POP, POS sales & marketing guides.”
In other words, this is a comprehensive rebirth of P19 with all the advantages of a big branded campaign on a national scale. The sword is in the right hand now.
$ISWH Shares Build a Major Base as Company Turns GreenISWH
- Shares form a clear base
- RSI shows the classic Bullish Divergence setup
- Downtrend broken as Company turns profitable on Operating Basis
The Jack of Diamonds
ISWH seems, on its face, to be a bit of a “jack of all trades, but master of none”, which is likely part of why the story has been left for dead by the market. But, if you look a little under the surface, that really isn’t a fair interpretation. First off, the company’s Spirits segment centers around Besado – an award-winning top-shelf tequila that tends to see a major sales boost in the final three months of the year. That means, all in all, it is a master of that category of business, at least through year-end.
Second, its CBD products brand, P19, has a number of advantages, including an important strategic partnership to grant it nano-infusion, marketing, and distribution with a market-leading platform on board. And all of this just really got underway in full swing. So, we’ll see how that progresses from here. But even if you aren’t the master of the CBD space, the space itself is growing at such an incredible clip that there’s a wide margin for success.
Finally, the company’s Home Healthcare segment has posted nearly 15,000% growth on the topline over the past 6 months. So, I’m not exactly sure how you choose to define “success” or “mastery”, but whatever that is, it certainly isn’t “failure” or “mediocracy”.
The Fundamental Equation
At the end of the day, the company is now securely profitable on an operational basis.
That’s generally all the market will care about over time. If there are liabilities, they can be solved. So long as the underlying model works, in an abstract sense, and in action in recent history.
Right now, investors see a stock that isn’t acting like a champion, so they assume the company must not be winning. But every great investment opportunity starts out exactly like that.
