Even a cursory look at shares of International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) suddenly fails to add up when you consider the game the company is now playing and how well it appears to be playing it.
The stock looks like a left-for-dead death spiral special on the OTC. We are talking about a deep sub-penny with a market cap south of $400,000.
But we are also talking about a company that is hinting at a major partnership in the works, that is ready to show fully-audited financial data, that is nearing an uplist off the pink sheets, and that just pulled in over $225K in operating sales in its fiscal Q3 based on results posted by the company this morning, which represents over 60% in sequential quarterly growth on the top-line. That’s a massive rate of growth.
The company also published data showing that its Home Healthcare segment posted over 14,000% sales growth over the past 6 months. And this is probably its least exciting segment. According to projections, both its Spirits and CBD products lines are heading for even bigger results.
There’s something not right here. But, with stocks like this, it’s important to remember that they are so overlooked that massive value can build up in front of a monster spike to the upside. ISWH may be just such a situation.
The Low Down
As noted in its release, Q3 was a big statement quarter for International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH).
Data from the quarter showed sequential revenue growth of 30% on an unadjusted basis, and 62% if lagging unreconciled payments are included, with over $225K in total sales booked during the period. In addition, the company noted that management anticipates significant expansion in gross profitability and overall sales in the current quarter ending December 31, 2019 due to expanding sales of its P19 CBD-based products, a strong seasonal tailwind driving Besado Tequila shipments, and continued strong growth in Home Healthcare clientele.
You can feel the enthusiasm in the management commentary. The recent past has been especially good, but a clear case can be made that bigger things lie ahead.
“It was a great quarter and reflects the scope of the momentum we have in place right now, but falls short of capturing the trajectory we have in front of us,” continued Mr. Williams. “We will be producing an audited version of these results as part of our move to uplist onto the OTCQB next year. And with the help of new partnership agreements and the powerful growth we already see across all segments, we believe Q4 will easily be the best quarter in the Company’s history.”
All in all, the highlights from the quarter paint a picture of continued performance that far outstrips current market pricing for shares.
The company noted that it negotiated a strategic partnership agreement to restart marketing and distribution of its P19 CBD products, officially changed the corporate name and stock symbol to better reflect overall business model, began negotiations toward a game-changing strategic partnership, and achieved a second consecutive quarter of gross profitability.
Right now, this is a big uptrend sitting in a cheap package by any reasonable estimation.