HIRU trade ideas
$HIRU An OTC SuperHIRUAlready up 79% since the start of June, HIRU Corporation (OTC: HIRU) could be poised to continue on its bullish run thanks to two notable reasons. The first is the fact that it obtained a series of partnerships that provide it with millions in revenues and position it as a noteworthy player in the market. The second is a mass share buyback of HIRU stock which in turn might cause the stock to maintain its steady momentum. As things stand, HIRU stock is well-positioned to continue on its uptrend as a result of its growing business and dwindling float.
HIRU Fundamentals
Securing Deals
Over the course of the year, HIRU accumulated two noteworthy co-packing agreements, one with Voss and the other with BLK. Voss for the uninitiated is a high end bottled water producer known for its cylindrical bottle. On the other hand, BLK is the fastest growing flavored water brand in the US. The brand is known for the dark black color of its water and its flavors’ catchy names like dirty lemon or black cherry.
That said, these two brands are dominant players in the bottled water industry and by signing co-packaging agreements with these brands HIRU has effectively increased its notoriety in the bottled water industry and is likely to obtain substantial profits from these deals. As things stand, HIRU is poised to make millions from the VOSS deal alone which is extremely promising for HIRU stock.
Share Buyback
In an effort to increase the HIRU stock price, the company is buying back a sizable quantity of shares in order to lower the stock’s 1.9 billion float and increase demand for its shares in accordance with the law of supply and demand. So far, HIRU managed to buy back 12.5 million shares in May and 9 million shares so far in June. All in all, HIRU managed to buy back 21.5 million shares which is a good start though it doesn’t scratch the surface of the stock’s 1.9 billion float. That said, HIRU shows no sign of ending its current buybacks anytime soon
As things stand, the stock may experience positive catalysts in the near future as a result of its increased revenue and new deals due to its increased notoriety. These catalysts would then have an easier time influencing the stock due to its shrinking float.
HIRU Financials
According to its Q1 financial report, HIRU’s assets increased QoQ from $8.5 million to $9.3 million. Its cash balance also increased QoQ from $28.4 thousand to $38.7 thousand. On the other hand, its liabilities decreased from $2.9 million to $2.2 million.
HIRU’s income statement clearly depicts its substantial gains while illustrating its struggle with upscaling. Its revenue quadrupled YoY from $1.8 million to $4.9 million. That said, its cost of sales also increased substantially from $584 thousand to $2.94 million which is a clear indicator of upscaling struggles. A clearer indicator of these struggles is its operating expenses which increased from $345 thousand to $1.5 million. Due to these upscaling issues, HIRU’s net profit decreased from $942 thousand to $380 thousand.
Technical Analysis
HIRU stock is in a bullish trend and is trading in an upward channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is neutral at 61 and the MACD is approaching a bullish crossover.
As for the fundamentals, HIRU stock is poised to increase its revenues due to two major co-packaging agreements with VOSS and BLK. These agreements have also increased HIRU’s notoriety, and as a result, these deals may lead to additional deals in the future. Additionally, HIRU is currently in the midst of its stock buyback efforts in order to lower its massive float. For these reasons, HIRU stock could continue climbing over the course of this week – especially with the stock gaining momentum among Fintwit investors.
HIRU Forecast
As is, HIRU stock has two things going for it. The first is its new deals with VOSS and BLK which in turn may likely result in greater revenue and a boost in notoriety. The second is HIRU’s current stock buyback which may cause the stock’s PPS to rise due to the law of supply and demand. Additionally, its shrinking float means that the stock could be more easily influenced by catalysts like additional deals due to increased notoriety and improved revenues due to the recent deals.
$HIRU Running on Possible $WMT DealWith the OTC witnessing increased liquidity over the past week, Hiru Corporation (OTC: HIRU) is becoming one of the hottest plays. After announcing a meeting with a major US retailer, HIRU stock soared by as much as 60%. With this meeting approaching, many investors are watching HIRU stock closely in anticipation of more news. Meanwhile, the company appears to be ready to expand its business into Europe. In light of these upcoming catalysts, HIRU stock is one to watch over the coming weeks.
HIRU Fundamentals
With two subsidiaries under its umbrella, HIRU is engaged in water bottling and labeling through AZ Custom Bottled Water. It is also involved in ice manufacturing and water purification through Ice LLC. Currently, HIRU is focused on growing its bottling business as it has the potential to allow the company to realize more revenues by partnering with other producers.
Partnerships
On that note, HIRU has already partnered with the nation’s largest alkaline water company – The Alkaline Water Company (NASDAQ: WTER). To facilitate this partnership, HIRU built a new facility to accommodate its new automated packaging and bottling line for the packaging of WTER’s Alkaline88 product.
According to this partnership, HIRU will package Alkaline88 for 3 years and initially started producing the 3 liter and 2 liter Alkaline88 water bottles at the new facility. Bullish on this partnership, HIRU’s CEO Kathryn Gavin believes “the co-packing relationship between the Company, AZ Custom Water and Alkaline Water will continue to grow for years to come as we increase our production and packaging ability at our current three locations and potential new locations to be built”.
Since this partnership has the potential to provide the company with significant revenues, HIRU increased its production capacity for Alkaline88. WTER expects the company to become its main west coast supplier for the product. In addition, this increase is expected to allow HIRU to become an important producer for its entire portfolio of water products.
Based on this, investors and WTER itself are bullish that this partnership could continue well into the foreseeable future. Considering the large scale of this partnership, many investors are bullish HIRU stock could witness major growth in the long-term as the company attracts the interest of other major producers.
After its success with WTER, HIRU established a new co-packaging partnership with American Eagle Beverages. As a white label water distribution company, American Eagle Beverage provides small and large run white label water bottles for its clients to market themselves. This process is done through American Eagle Beverage’s Liquid Business Card Program which allowed the company to become one of the largest white label bottle distributors in the nation.
Through this partnership, HIRU will provide American Eagle Beverage with all their production requirements for both small and large bottle runs. In this way, HIRU expects to realize between $1.5 million and $2.5 million in revenues from this deal alone. In light of this, HIRU stock could be poised for more growth as the company continues to strike profitable partnerships.
New Facility
To accommodate its growing production, HIRU leased its fourth facility for water bottling. This 51 thousand square foot facility is able to accommodate 5 new automated water bottling lines – three of them will be reserved for WTER – and has space to store more finished products. Moreover, the new facility has 7 delivery truck loading bays which could allow HIRU to deliver more products easily to its clients. Given that the company expects the demand for its products to grow by double digits each quarter in the future, leasing this facility will help HIRU meet its anticipated orders.
In the meantime, HIRU completed the first automated water bottling line and shared a video of the line operating. With this in mind, the company is in the final stages of completing the second line and has knocked down walls for the remaining lines. After all these lines are completed, HIRU expects each bottling line to have a capacity of 36 thousand gallon bottles per day resulting in more than 1 million gallon bottles per month. With new orders from new clients expected to be delivered in Q3 and Q4, many investors are bullish HIRU stock could be a bargain at its current PPS.
Europe Expansion
Looking to expand globally, Gavin was invited to Europe to see 3 water plants and beverage companies to partner with HIRU. One of those companies is Zepter International which had a “great meeting” with HIRU. Zepter also showed willingness to work with HIRU in the future in several countries where it operates. With this in mind, some investors are speculating that HIRU closed a deal with Zepter as the company shared that Zepter agreed to a water deal at 5 hotels and several offices across the world.
During this trip, Gavin also met with retired NBA player Vlade Divac to join HIRU’s team as an ambassador and to close a water co-packaging deal in Serbia. If these plans come to fruition, HIRU stock could be positioned for a major run-up on more updates on this expansion.
Walmart Deal
Meanwhile, many investors are excited over the potential of HIRU’s scheduled meeting with Walmart on July 6th. Although the company has not shared more information, some investors are speculating this meeting could be for bottling other water brands for Walmart. As the meeting is right around the corner, HIRU stock could climb in anticipation of more updates about the meeting.
HIRU Stock Financials
Looking at HIRU’s financials, the company grew its assets QOQ to $5.1 million compared to $4.2 million. This increase in assets was the result of cash on hand increasing from $83.1 thousand a quarter ago to $1 million. At the same time, the company reported $4.5 million in liabilities which is similar to the company’s liabilities in the previous quarter. As for revenues, HIRU reported $1.8 million for Q1 and had $345 thousand in operating costs. In light of this, HIRU reported a net income of $942.7 thousand.
Technical Analysis
HIRU stock is currently trading at $.0042 and has supports at .0038, .0032, and .0027. The stock shows resistance near .0044, .0058, and .008. With the OTC heating up, HIRU stock has increased by roughly 50% over the last two weeks with news of its meeting with Walmart spreading. Since the meeting is approaching on July 6th, HIRU stock could run in anticipation.
Currently, the stock is trading above its 50 and 200 MAs which is a bullish sign that HIRU could sustain its run. Bullish investors could add to their positions on pullbacks in anticipation of its upcoming catalysts and PR.
Accumulation is currently holding steady after a recent downtick and the MACD is bullish. The RSI is currently holding at 58. As for its share structure, HIRU has an AS of 1.75 billion, an OS of 1.74 billion, and a float of 1.2 billion.
HIRU Stock Forecast
Emerging as a leader in water bottling in the southwest, HIRU has been able to achieve this status through its successful partnership with The Alkaline Water Company. Considering the success of this partnership, HIRU has been able to secure another partnership with American Eagle Beverages and has more orders to be delivered in Q3 and Q4. Based on this, HIRU is well-positioned to continue growing financially in the foreseeable future as it continues pursuing growth opportunities.
With this in mind, Gavin’s recent trip to Europe is expected to provide HIRU with the opportunity to expand its reach globally. As is, HIRU could be set to begin a partnership with Zepter International as both companies are met together. If an agreement materializes soon, HIRU could capitalize on Zepter’s water deal at 5 hotels and several offices around the world.
Another catalyst to watch is HIRU’s upcoming meeting with Walmart on July 6th. If HIRU is able to secure a deal with Walmart for water bottling, HIRU stock could be positioned to surge ]. In light of the management’s efforts to grow the company, many investors are confident HIRU stock could be a profitable long-term hold.
$HIRU - Potential Play On my watchlist for a potential play. Waiting for the daily to become bullish and for price action to break the hourly MA50.
