In building the case for diversified small caps, such as ISW Holdings Inc (OTCMKTS:ISWH), you have to paint a picture that shows credible promise for multiple lines of business in a company that has yet to firmly establish credibility, in the market’s eyes, in any.
That can be a challenge.
But, in the ISWH case, it really isn’t. The company has a model built around establishing interest in high-growth markets and managing brand development. Right now, it may have two rocket ships to ride that are coming into their own light at the same time with the market not pricing in either. This could offer a particularly promising opportunity for speculators, based on our analysis.
Home Healthcare
In 2020, estimates show that healthcare spending in the United States will rise to $11,172 per capita, a growth of 66% over the course of the last decade alone. However, and despite its growing importance, expenditure on home healthcare makes up less than 5% of that amount.
That’s an enormous patch of ground to make up, which suggests extremely strong growth ahead in the space.
Paradigm Home Health, ISW Holding’s home health division, is developing a pilot for its on-demand healthcare, providing a platform that will effectively bridge the gap between healthcare providers and patients. Patients will be able to find outpatient clinic services in their vicinity, compare the cost and pick the one suitable for their budget and location.
PHH is also developing tools and technology to facilitate the provision of healthcare services outside of specialized facilities. Telehealth services have seen a dramatic increase in relevance in recent years, a phenomenon that has gained momentum during the Coronavirus pandemic as patients have been obliged to reimagine the ways in which they access healthcare. The company’s efforts will be geared toward home care facilities, which will help shift the medical burden away from clinics or hospitals.
A crucial component underpinning PHH’s medical offering is Telecare – a revolutionary technology designed to provide home health patients with a simple, one-button wearable device to call their visiting nurse, home health provider, or a 24/7 nurse assist hotline anytime they need medical assistance.
Combining cutting-edge technology with an extensive training program designed to provide healthcare professionals with the required skill set needed when providing care at a distance, PHH aims to be a crucial partner to patients and healthcare providers within the burgeoning US home healthcare market.
We have seen dramatic growth in the segment in recent quarters, with consistent double-digit percentage topline gains on a sequential quarterly basis now, apparently, for as many as five consecutive quarters.
On this basis alone, on a forward-sales basis, the stock could be argued as sharply undervalued. But this is hardly it.
Cryptocurrency Mining Equipment
As the reader may already be aware, ISWH recently moved aggressively in the crypto mining equipment space through its new joint venture with Bit5ive LLC, a global leader in cryptocurrency mining and innovative turnkey mining solutions.
According to the release, Bit5ive is an official distribution partner of Bitmain, the industry-leading fabless manufacturer of computing chips and distributor of Antminers to more than 30 countries in Latin America, Central America, and the Caribbean. In addition, Bit5ive is the producer and distributor of POD5 and Power Skid 2.5, the most efficient and successful infrastructure for crypto mining hardware. Bit5ive is quickly becoming one of the largest U.S.-based companies in the cryptocurrency mining and bitcoin farm industry.
“We are incredibly excited to expand our current portfolio and move into what we believe is a sector poised for strong technological and financial growth,” stated ISW Holdings President and Chairman Alonzo Pierce. “This new joint-venture agreement enables us to collaborate with the experienced team at Bit5ive to innovate the infrastructure needed to run profitable, efficient crypto mining projects, and to take advantage of the incredible growth projected for the crypto market.”
Aggregate security spend, or “Thermocap”, is the aggregated amount of coins paid to miners and serves as a proxy to mining resources spent. It serves as a measure of the true capital flow into Bitcoin and is computed as the aggregate coinbase transactions multiplied by the price in USD at the time they were mined. This metric was first put forth by Nic Carter.
According to the metric, the cumulative revenue of Bitcoin miners has surpassed $17.5 bln in the latest update.
That represents further evidence of a tailwind for mining equipment as the efficiency of hash-rate functionality sides with new capex investment in the equipment necessary to mine more crypto.
That may be another reason why we recently saw Core Scientific purchase some nearly 18,000 Antminer s19s from Chinese ASIC chip manufacturer Bitmain. This is a framework-shaping piece of news because this is not the kind of story that you see in a bearish context for mining equipment names.
According to coverage in livebitcoinnews.com, “Russell Cann – chief customer success officer of Core Scientific – claims that the company can quickly grow to encompass roughly 450MW of power at its present headquarters. In addition, approximately 46 percent of the company’s mining equipment will run via renewable energy sources such as natural gas.”
ISWH is now a part of that industry and is likely well set up to benefit from the rising tide as company’s like Core Scientific strive to build out their mining resources.
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