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$ISWH Gets Ready to Blow Out $0.50 Resistance on Big Growth Data

Par GregFolin
ISWH is up about 150% in the past 3 weeks.

But the company has been posting massive sequential q/q sales growth in the home healthcare space. The float is small. The stock is now trading above its prior DT line and the 50-day SMA. And the critical $0.50 level is under siege right now as a possible breakout trigger.

ISW Holdings Inc (OTCMKTS:ISWH) bills itself as a global brand management holdings company with diverse operational interests. Lately, the company’s home healthcare services segment has been its critical growth driver, powering breakout numbers for three consecutive quarters to close out 2019. And the company’s most recent communications suggest that streak will grow to at least five consecutive quarters with accelerating double-digit percentage growth on a sequential quarterly basis, which is extremely rare.

The latest Earnings Trends report from Zack’s Research indicates that earnings for the Medical sector are expected to have gained 1.9% in first-quarter 2020, on revenue rise of 8.1%. That is likely to be the strongest sector in the market for Q1.

According to the most recent release from ISWH, “for the year ended December 31, 2019, ISW Holdings posted revenues of $527,151. Management notes that these results were achieved on accelerating sequential quarterly growth, with nearly half of those revenues appearing in Q4. Sequential growth in Q3 (versus Q2) was 26%. Sequential growth in Q4 (versus Q3) was 29%. The Company projects Sequential growth in Q1 2020 to come in at a new record level significantly outpacing Q4 2019 results.”

In other words, ISWH will probably post growth about four times as powerful as the overall healthcare sector in Q1, which is likely to end up as the strongest sector overall during the Q1 reporting season. Provided the trends powering the company’s growth remain intact over the next four quarters, the stock is now trading at about 0.5x forward sales, which makes it extremely cheap by any standard – and that’s after 150% in share price gains over the past few weeks.
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GregFolin

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