There are a number of interesting companies doing good by doing well right now, particularly in the telehealth and fintech markets. One such example in the small-cap space is ISW Holdings Inc (OTCMKTS:ISWH), a company ramping up with a tie-in of crypto and telehealth that is extremely compelling, especially given its strong run of financial performance over the past year.
To say that ISWH may be undervalued seems like an understatement fit for a contest. The company has regularly posted sequential quarterly top-line growth numbers in the double-digit space. And, based on its most recent press release, this streak is set to continue when it puts up quarterly numbers for Q2 2020.
To wit: ISW Holdings just reported that it anticipates continued improvement and sequential quarterly revenue growth when performance data for quarter-ended June 30 are disclosed this month, with the bulk of gains driven by continued expansion in its Paradigm Home Healthcare (“PHH”) division.
According to the release, this follows the Company’s announcement last week that it has completed design-stage work on its forthcoming 1MW Proceso S19 Pod5ive Data Center for shipment to the 100-megawatt Pennsylvania cryptocurrency mining project as part of its joint venture with Bit5ive, LLC.
“Last week, we announced our new focus on the Pennsylvania project with Bit5ive and our participation in one of the most ambitious crypto mining facilities in the world, but the real breadwinner for the Company at present remains our flourishing home healthcare business,” commented Alonzo Pierce, president and chairman of ISW Holdings. “The strong performance in Q2 from PHH was highlighted by continued growth in new clients and new hires. We are also very excited about our upcoming integration of proprietary telehealth technology into PHH operations.”
It’s important to understand that, when the company says that it anticipates “continued improvement and sequential quarterly revenue growth” it is suggesting another huge growth number, because that’s what we have been seeing. “Another” quarter like that means another significant jump in the data.
But there’s more to the story than just ramping top-line performance. ISWH stands at the vanguard of two of the most exciting growth revolutions of our era right now: turnkey crypto mining operations tied together with telehealth and home healthcare.
Just Turn the Key
As noted above, the company recently announced that it has completed design-stage work on its forthcoming 1MW Proceso S19 Pod5ive Data Center for shipment to the 100-megawatt Pennsylvania cryptocurrency mining project as part of its joint venture with Bit5ive, LLC.
That puts ISWH in the drivers’ seat as the crypto cycle takes flight once again.
The move higher in the price of Bitcoin sets up fertile soil for fresh excitement here. Bitcoin has taken flight in the past few weeks along with gold and silver as the US dollar has dumped into the gutter on a number of factors, including poor management of the virus as well as a ton of fresh signals on money supply growth via the Fed and the US Congress.
This series of events has spurred a move to search for stores of value that are uncorrelated or inversely correlated with the dollar. And bitcoin certainly fits the bill there.
In addition, as crypto coins take flight, investors looking for related stocks will no doubt be in search of those that fit the bill. They will naturally run into a problem: there aren’t more than a few. And ISWH is now one of the best from a fundamental standpoint. So, we would expect the stock to get some serious play on that point alone.
But this is real venture into the crypto arena, and we will see a number of fresh strong catalysts coming from the company that augment this narrative in the very near future.
Take Two and Video Chat Me in the Morning
The other big key here is the ramping revolution that is Telehealth. ISWH has positioned itself at the heart of that narrative and it is in perfect position to do so.
The company has been growing in recent quarters mostly because of its home healthcare company. Make no mistake about it, home healthcare is the future of healthcare. It’s not just because of the virus pandemic that this is becoming such a big deal. The revolution has been brewing for years. Health care is too expensive, and technology now allows us to accomplish terrific healthcare without being hooked up to machines in a hospital bed 24/7 anymore. We can manage this with more finesse and ingenuity at this point.
But part of that equation is Telehealth, which has been deregulated powerfully since March. That wave of deregulation is likely to continue as the current US administration looks for devices to show it has been working on healthcare all along.
Just last week, Politico reported that “Pressed about his lack of a replacement for Obamacare, Trump also has spent days promising to unveil a health plan of his own, though he declined to detail exactly what that plan would do. Trump on Fox News last month promised a “full and complete health care plan” by this past weekend, but it never arrived. On Monday evening, Trump said that a health care plan will be coming by the end of August, though three officials earlier in the day said the administration does not have plans to imminently produce an Obamacare alternative.”
That article went on to note that “Some elements of the rural health plan have been under consideration for more than two years, but the White House budget office balked at proposals to reform hospital payments, fearing that they would be unworkable in practice. Federal health officials retooled the proposals to demonstrate they would save the federal government money.”
That agenda fits perfectly with what we are seeing from ISWH, which promises to be a big beneficiary of the administration’s scramble to look proactive on these issues.