International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) shares are potentially forming a key basing pattern in recent action. This fact should be appreciated given the oversold nature of the stock and the profound turnaround we have been witnessing in the company’s core business.
While the company has a legacy spirits segment that promises to generate strong growth in Q4, and a powerful potential as a CBD products brand in 2020, the lion’s share of the topline jump we have seen over the past two quarters has actually come from its Home Healthcare segment.
Here’s the big point: Home Health Care is in a boom and ISWH is demonstrating tangible financial performance in the space, leading to EBITDA profitability and 6,400% sales growth. That defines the company’s Q2 and Q3 of 2019. And Q4 is likely going to be another major growth statement from this division.
Home health spending is expected increase at a faster rate through 2027 than all other categories of care, according to a recent analysis from the Centers for Medicare & Medicaid Services (CMS) Office of the Actuary.
Home health care spending is expected to reach more than $186 billion in 2027, according to the report. This is miles above any other category of health care service, including hospital inpatient care, physician and professional services, nursing facilities, prescription drugs, retail sales of medical products and literally everything else in the space.
Why? Because we are headed for a demographic sea change. According to the US Census Bureau, for the first time in the history of the US healthcare system, people over 65 years old will outnumber those under 18 years old within the next two decades. The monster generation we call the “baby boomers” is in a transition that will see all of them over 65 ten years from now. By 2030, over 20 percent of the US population will be over 65.
In other words, we are officially a “graying society” in the US. Home health care goes hand in hand with that trend. 70 percent of home health care consumers are 65 and older.
To boost this trend, we are developing tools and technology to make it easier and easier to support health care services outside of specialized facilities. This just opens the door to increase the number of care opportunities that can shift from the clinic or hospital and back into the home.
Finally, both providers and consumers are starting to prefer home health care support as an option because it’s less costly. This is self-evident.
Home Health Care is a structural growth trend driven by the shape of our society on a demographic, political, and technological level. And ISWH has been moving rapidly into this space as a provider.
How has this worked out?
This segment just drove 6,400% sequential quarterly revenue growth for ISWH in Q2 and was the primary driver behind the company’s first ever profitable fiscal quarter (on an EBITDA basis) in Q3.
And yet, rather amazingly, the market hasn’t even noticed.
Let’s say that again: this sub-penny stock just orchestrated a massive turnaround through a bold pivot that resulted in 4-digit percentage top-line growth on a sequential basis that is about to result in a quarterly report representing the breakout into EBITDA profitability, and the market hasn’t noticed… yet.
Right now may be the opportunity to get on board before some sort of massive repricing shares takes place. As is always the case in markets, data doesn’t matter at all until it suddenly matters like crazy.