International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) can be fairly called a “jack of all trades, but master of none”. But, by that very same token, the company can also be called a “diversified model”, especially when it’s working. And right now, we believe one can actually make the case that it’s working, and it could be about to be working on a much, much bigger level.
This obviously stands in stark contrast to the stock’s sub-penny per share price. But that may represent a paradox that will be resolved in the favor of its shareholders over time.
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. In other words, we should see big numbers from the Spirits group this quarter when the company puts out its audited financials after year end.
Second, it’s CBD products brand, P19, has a number of advantages, including 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.
Finally, the company’s Home Healthcare segment has posted nearly 15,000% growth on the topline over the past 6 months. That one is fully in gear and set to show even more dramatic growth next year, which should be discounted by the market over time.
The Partnership
According a press release out last week, BioPulse, by all accounts a leading branding and nano-infusion manufacturing player in the CBD space, will step in as ISWH’s exclusive manufacturing and marketing partner for the launch of five CBD-based wellness products.
It’s effectively a “refresh” for the company’s CBD business with a market leader acting as a key player in the process. We should also note that this will create a base of production that consumers will be able to trust given the FDA-compliant facilities that BioPulse brings to the equation.
Terry Williams, CEO of ISWH, commented, “BioPulse has the experience and capability to step in and help take our CBD-based products segment to a new level as we navigate this critical stage and transform enormous potential into accelerating revenue growth. This step will position our P19 brand as a differentiated product, both in terms of product quality through superior bioavailability and in terms of brand recognition, given BioPulse’s nationwide marketing and distribution footprint.”
Mr. Williams continued, “This is really an extraordinary partnership that will create a ton of value for our shareholders. The CBD market continues to exist in a context of high-powered growth. We believe the key to delivering that growth to our shareholders will be about differentiation and exposure. Simply having an ecommerce portal isn’t enough. The product has to be differentiated on a quality level and you have to get it in front of consumers. This partnership agreement delivers on both of those objectives.”
The Backdrop
You might be thinking, “Ahh okay, so I am supposed to believe that this stock is a few thousand percent undervalued based on what might happen in the future because they have this partner now?”
Well, yes and no. First off, yes, a responsible deep-dive analysis would suggest that this stock is likely at least several thousand percent undervalued at this point. But, no, we aren’t saying that conclusion should be drawn just on the basis of this new partnership.
The fact is, the company is already demonstrating strong growth, with two consecutive quarters of gross profitability.
Data from its financial statements for Q3 show sequential revenue growth of 30%. The company also received a large additional sales input that is now receivable and will be reflected in Q4 data but actually reflects the operational success achieved in quarter ended September 30. With these additional sales included in Q3 results, the quarter actually showed sequential top-line growth of 62% on over $225K in total sales.And according to everything we have heard from the company since, Q4 will beat those numbers in a big way, representing exponential growth now underway. And if you think those numbers are BS, remember, this company is setting up to publish fully audited financials at year end.
