ISW Holdings Inc (OTCMKTS:ISWH) is a stock trading for a dime per share. Already this year, we’ve seen stocks trading at prices in the pennies soar to dollars – too many to count – as the Robinhood crowd discovers and backs them when they become identified with two key ideas: growth and thematic relevance.
In the first case, the key is to show successive quarters of double-digit sales growth on a sequential basis – not just a y/y basis. In other words, growth has to be basically exponential, even if we’re dealing with small numbers.
Secondly, it has to be attached to a theme that speaks to the next-generation world we are rapidly entering with the dramatic shifts brought about by society’s adjustments in the face of the pandemic crisis.
The Stars Align
We would argue that ISW Holdings Inc (OTCMKTS:ISWH) scores on both points.
ISWH has already demonstrated rapid topline growth in its home healthcare operations with five consecutive quarters of sharp sequential growth. Its most recent quarter showed revenues of nearly $250K, representing year-over-year growth of 79% (and 244% for the first half of the year) compared to comparable periods in 2019. It has also shown a string of mostly double-digit sequential quarterly topline gains during that stretch.
In addition, based on its recent release, we can say the stock also checks the second box: the evolution of this name is clearly into the juggernaut Telehealth theme. Apart from electric vehicles, Telehealth is maybe “the next big thing” as a thematic axis of analysis.
The world is changing. And the direction and nature of that change is clear. The superfluous pieces are dropping out of the equation.
The compact disc was a short-lived thing. Why? Because it came into prominence as the internet was gaining its initial foothold. The internet implied that physical materials were going to become superfluous in the delivery of music media.
Now, with the pandemic, we are getting around to realizing that many of the features of the healthcare system are similarly superfluous. The solution is Telehealth as a delivery mechanism for many pieces of the healthcare puzzle. Given that regulatory roadblocks were preventing this transition long after the technological means to enact it were in place, the growth wave that stands to rush into the void is prolific.
Now that those regulatory roadblocks have been cleared away – by necessity, given the virus crisis – that wave is gathering steam.
ISW Holdings Inc (OTCMKTS:ISWH) recently announced the establishment of operations for its Telecare subsidiary – a division designed to link its expertise in managing home healthcare with a fully digital process of patient intake and management that precludes the need for in-person follow-ups to get the care protocols engaged and underway.
As a result, according to its latest release, “the Telecare referral intake process is fully electronic, with provider referrals opening a client relationship, coordinating care with providers, logging all consents, and assigning a home health caretaker, all achieved entirely electronically. Within twelve hours, an on-site assessment with a registered nurse is conducted, and full care services begin within 24 hours. The Telecare team is growing, and the Company intends to ramp up service across the state and to extend its service area into additional states over coming months.”
That is precisely the type of innovation that may be picked up by the momentum market crowd now defining this bull market.
“Telehealth has become one of the most important growing innovations to emerge as a mainstream facet of the healthcare system over recent months, and we intend Telecare to become a key player in this narrative,” noted Alonzo Pierce, President and Chairman of ISW Holdings. “Telecare’s platform is built from the ground up to key off of first responder care. Telecare will transform the healthcare experience by creating an ecosystem of coordinated action that minimizes superfluous steps to bring healthcare providers, care protocols, and home health caretakers into synchronized activity to minimize costs and deliver the highest standards of ‘whole person’ home-based care to a growing community in Texas.”
The stock is cheap and doesn’t get a lot of attention. But Sherwood Forest is an activated factor in this market, and it would be far from surprising to see ISW Holdings Inc (OTCMKTS:ISWH) hit the radar.
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