The story for International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) continues to explode onto the radar for speculators interested in massively undervalued stocks.
The company just put out a new press release this morning demonstrating the full and remarkable scale of the turnaround story in play here. Record quarterly results. Huge revenue growth. Major partnership agreements on the way. And guidance looking for a much bigger set of results in the next round of data.
Oh, and by the way, in case you were thinking, “sure, but this is a triple-zero sub-penny, so all of these claims can easily be dismissed as BS!”, think again. The company, in its prior release, announced that it has engaged auditors to produce and disseminate fully-audited financials for all of this growth as part of its move to uplist off the pink sheets.
After this quarter, you can bet they can easily afford to do so.
“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.”
Inside the Numbers
According to the release, the company saw sequential revenue growth of 30% on a strict basis, but it was really quite a bit better than that. Apparently, it 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.
That puts the de facto Q3 results at a sequential top-line growth rate of 62% on over $225K in total sales. Given that the company’s market cap is just $375k, and its Q3 operating success leads to a reasonable projection of annualized sales of $900K, we are talking about an unheard-of price-to-sales multiple right now of 0.41x. For a company that is profitable on a gross basis, that’s beyond absurd.
The company also hinted at a “game-changing” partnership deal that is set to be announced in coming communications. This is like a ticking time bomb right now. And something is going to come along and set it off. A major new partnership agreement would be a likely candidate.
The simple reality of the situation is this: Nothing can continue to be this cheap with these kinds of numbers going on. According to the company, Q4 is expected to be “much” better than Q3, which was a record result in its own right.
“International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) deserves a close look at present levels” might be just about the understatement of the year.