While a quick glance at the chart may not show it, there’s quite a bit of positive momentum building up under the surface of a small diversified Nevada company called International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH).
The company has operations in the spirits marketplace with an award-winning product called Besado Tequila. But it also has a very rapidly growing Health and Wellness segment that features both home healthcare services and a range of high-quality CBD-based products, including gummies, shooters, nectar, pain cream, and tinctures.
In its most recent press release, we got perhaps the most thorough look at how the company is doing than we have seen in a while, and the picture looks quite a bit more promising than one might think looking at the price chart of the stock. That type of disparity could represent an opportunity for new investors, so we thought it was a good time to dig into the details.
Growth and Diversification
One of the first points to make about the companies recent quarterly report is that growth is picking up speed and its coming quarter is likely to show the same thing, but with increasing diversification, which starts to make that growth feel very sustainable and extrapolatable – the key for spotting a potential turnaround with big upside possibilities.
The main point of big growth that shows up in the data from last quarter is in the Home Healthcare segment, with has now displayed over 14,000% sales growth in the last two-quarter period.
Overall, based on operational output, the company saw over 60% in top-line growth on a sequential basis, which builds on over 4000% sequential growth from the prior quarter. That’s a cumulative impact that shouldn’t be ignored.
The company also noted in its release that Q3 represents the second consecutive quarter of gross profitability.
The Road Ahead
The other big point to make about this press release is that it contained a key note about future expectations for what we can expect to see when current quarter results come up for review in a few months.
On this note, management was extremely positive:
“We continue to ride a wave of growth in 2019, with ramping sales, big strategic achievements, and what will clearly go down as our best year on record, with the bulk of the action still in front of us during the final seven weeks of the year,” commented Terry Williams, CEO of ISWH. “Based on our visibility right now into current quarter operations, Q3 – strong as it was – is going to pale in comparison to Q4 because most of our topline growth in CBD and Spirits is going to be reflected in the current quarter. That said, Q3 represents another signpost in the course of the Company’s continuing resurgence, particularly for our Home Healthcare segment, and it’s another strong report card showing gross profitability and a big jump in overall sales.”
This was also reflected in additional commentary in the release: “Looking ahead, management anticipates significant expansion in gross profitability and overall sales in the current quarter ending December 31, 2019 due to expanding sales of the Company’s P19 CBD-based products, a strong seasonal tailwind driving Besado Tequila shipments, and continued strong growth in Home Healthcare clientele.”
Hence, a series of positives, with momentum building across multiple segments. All it needs now is a fresh catalyst that can help to set fire to bigger expectations and this could really get some traction.