Confirmation of record monthly sales, for the month of May, is one of the catalysts fuelling Alkaline Water Company Inc (NASDAQ: WTER) upswing after a harrowing plunge. Record sales underscore the fact that the Alkaline88 brand is finally resonating well with consumers.
NASDAQ: WTER Catalysts And Price Analysis
The Company’s infused product line exceeding expectations is another development that underscores long-term prospects. An increase in purchase orders should allow the company to achieve record sales as expansion into new markets continues to gather pace.Alkaline Water has also turned to strategic partnerships having inked a deal with Premier National Food Distributors in a bid to strengthen presence in convenience store channels. The firm has already inked deals with more than 1,100 new convenience stores, a milestone poised to support accelerated sales growth going forward.While the stock has taken a significant hit amidst the developments, a strong rebound could be in the offing after a recent bounce back. The stock appears to have hit strong support at the $1.60 level, from where it is trying to make a comeback.Alkaline Water needs to make a run for the 2.10 mark, to stand a chance of bottoming out from all-time lows and avert further slides. For the stock to turn bullish after succumbing to short selling pressure over the past year, it needs to rally and find support above the $3.90 resistance level. Daily ChartBelow the $3.90 mark, the stock remains susceptible to continue edging lower or trading sideways in line with the descending trend line.
What Does Alkaline Water Do?
Alkaline Water casts itself as a leading producer of bottled alkaline drinking water sold under the brand name Alkaline88. Supported by a state-of-the-art proprietary electrolysis process, the company produces all natural healthy alkaline water for a balanced lifestyle.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=1s[/embed]
Why is Alkaline Water a bounce Back Play?
Alkaline Water is a potential bounce-back play, in the market, on achieving significant milestones on its bid to generate shareholder value. Record monthly sales amounting to $3.8 million is a development that affirms market acceptance of the company’s flagship bottled alkaline drinking water.The fact that the Alkaline88 is currently ranked as the fastest growing on sales affirms what investors can expect as the company embarks on an aggressive commercialization drive.
“We had significant increases in our growth across all classes of trade and continue to see accelerated growth in both our bulk and single serving sizes. As our infused product line begins to gain traction, we expect the flavor infused and hemp water to contribute significantly to our sales over the next three quarters," stated CEO Richard A. Wright.
Alkaline Water could be in for a record-breaking year on revenue growth given the milestones achieved so far. The confirmation that its Alkaline88 brand is currently available in 1,100 new convenience stores is a milestone that should support sales growth going forward.Sales from Walmart stores are already up by 29% as the company continues to enjoy 100% sales growth in Shaw’s, Shoprite and Bozzutos. Sales growth with existing customers is another milestone that affirms growing demand. Participation at the 98th annual Western Association of Food Chain convention has since resulted in initial orders of over 13 truckloads for the flavored Alkaline88 Water.
Hemp Extract Alkaline Water Ambitions
Buoyed by the growing demand for Alkaline88, Alkaline Water is seeking regulatory approval under federal, state, and local law as it seeks to venture into the hemp sector in pursuit of opportunities for growth. The Company intends to develop hemp extract alkaline water and other product lines to address a growing need in the hemp sector.
“As we begin to introduce our flavored and hemp-based products, we fully expect this new distribution platform to be a major avenue for our flavored and our Soothe brands,” concluded Mr. Wright.
Bottom Line
Alkaline Water has made up some ground after bottoming out from all-time lows. The bounce back comes on investors taking note of the robust sales that the Company continues to generate with its Alkaline88 brand.Recent price action activity indicates that the stock has hit bottom and due for a correction higher as investors take note of Alkaline Water tremendous potential when it comes to sales growth. That said the stock looks set to continue powering higher as a string of positive news continues to hit the tape.We will be updating our subscribers as soon as we know more. For the latest updates on NASDAQ: WTER, sign up below!Disclosure: We have no position in NASDAQ: WTER and have not been compensated for this article.Image courtesy of Pexels
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