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Written by
Jarrod Wesson
Published on
June 22, 2017
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The volume registered by SW INNOVATIVE HOLD COM USD0.001(POST REV SPLT) (OTCMKTS:SWHI), a telephone service company, skyrocketed recently. More than 70 million shares were exchanged in a few days. The reasons? SW Innovative announced in a press release that it will commence working with Troptions Corporation, an emergent options trading company.On top of it, Troptions has already announced first transaction. An amount of 7,692,307.60 TROPTIONS has been transferred to the cryptocurrency wallet owned by SW Innovative Holdings, Inc. How will it help SWHI in the financing? It was said that the cryptocurrency money will be used for financing SWHI's advertising budget.Have a look at the volume registered. We will explain you more in this piece.SourceSW Innovative The company was founded in Texas on September 3, 2003. The business objective has not changed much since the beginning. Only the name was changed on July 21,2014. The company was initially called "Everybody’s Phone Company", and afterwards changed to SW Innovative Holdings, Inc.What's the deal here?SWHI provides prepaid long distance telephone services in Houston, Texas. Clients obtain unlimited local dial tone with several options that include Call Waiting, Caller ID, Call Forwarding, and Speed Dialing, which can be purchased individually, or in a package. According to what we found in the annual report, the strategy of the company is targeting people in America having difficulties in obtaining an agreement with the large telecom operators. Credit history problems or bad credit can cause this kind of situation. There is a large amount of people with this problem in the US.

"We sell pre-paid local and long distance phone service, called “plain old telephone service” (POTS), to those whose want this hone service, but cannot qualify for, or afford the costs of, phone line service or data service as provided by one of the big telephone companies. Thus, our target customers are those who are credit disadvantaged or small businesses. Many of these people need the convenience of being able to use a phone service for a few months, drop it for a month or two, and then resume using it as circumstances permit, all without a lot of bureaucracy or complications. We provide that service." Source

Is the service of good quality and how is quality ensured? SWHI uses landlines owned by AT&T, or Verizon. SWHI is said to have agreements with these operators. Thus, the service provided is the same that they provide to their own customers. At the end, it is a great business for SWHI, as the "cost of owning all the hardware involved in providing local and long distance phone service" is paid by the large operators. SWHI only needs to sell the service and collect the payments.Recent Developments - TROPTIONSOffering some background is always great, but we are here to explain the increase in volume created by the most recent news. The first press release about the agreement with Troptions Corporation was put out on June 13, 2017. In this communication, Garland E. Harris, President of Troptions Corporation, noted the acquisition of "15,000 1st month incentive landline home telephone packages from SW Innovative , for $1,000,000 USD worth of TROPTIONS @$0.13 per TROPTIONS which is the market value as of 5/30/17 on Coinmarketcap.com for a total of 7,692,307.60 Troptions".Some days later, the market got to know more information about the transaction. First of all, market participants could verify it at xchain.io. Additionally, Garland E. Harris, President of Troptions Corporation, added the following comment, which is relevant for shareholders of SWHI. It helps understand why SWHI may benefit from the transaction.

“We have completed the agreement we started with SWHI on May 30th, 2017. SWHI will be able to use the TROPTIONS to support their advertising budget to get the word out about their much needed service that benefits the disadvantaged in the community.” Source

What do 15,000 home telephone packages for $1,000,000 USD mean?According to the most recent 10-K, the company had, "as of March 31, 2017, approximately 90 customers, all of whom are individuals". This new agreement should have made the share price jump, as the next quarterly revenue should increase at an unprecedented pace. If market participants get to know that the new agreement is impressive, the revenue will increase. If the TROPTIONS are liquid enough and the company can liquidate that position and obtain dollars, the financial situation of the company would be even better.ConclusionTo sum up, the company's strategy seems interesting, but it was not the most relevant fact in this company. The most important point was the collaboration with Troptions Corporation, which is helping in financing the advertisement of SWHI. In our opinion, the amount of TROPTIONS received should have made the share price increase. Patient investors will be rewarded once the full value is realized.We will be updating our subscribers as soon as we know more. For the latest updates on SWHI, sign up below!Image courtesy of Flickr.Disclosure: We have no position in SWHI and have not been compensated for this article.

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