American Premium Water Corp (OTCMKTS:HIPH): 450% Surge Forecast

There has been a cause for jubilation in the market over the past one week.The period has come to be among the best for cannabis producers and sellers, especially players within the pharmaceutical segment. This followed news from the Food and Drug Administration (FDA). A press release from the organization stated that the organization had opted to remove cannabidiol-based drugs from the Schedule I class following their approval of Epidiolex, a cannabis-based epilepsy drug created by GW Pharmaceuticals. This move would see the FDA legalize cannabis-based drugs for the first time ever.The above news comes to positively influence the cannabis market. According to an analysis by Brightfield Group, an industry expert in the cannabis sector, the growth in CBD is significant in the US and is expected to grow the industry to over $22 billion. This growth rides mainly on the continued legalization of CBD and is expected to have a profound impact on CPG and Pharma.As a result of the above approval and consequent reclassification of cannabis-based products, the cannabis sector has seen a number of surges in the share prices of different companies. Institutions like Tilray which have been seeking to venture into the pharmaceutical wing have been positively affected by this news as exhibited by their share prices.Over the same period, American Premium Water Corp (OTCMKTS:HIPH) received more positive news from an equity analysis firm SeeThruEquity – discussed later in this piece. As a result, the firm has been experiencing a surge in their share price. Over the past month, their share price has continued to rise steadily, standing at $.072 presently from lows of $.03 – an over 140% surge in prices – just a month back. Furthermore, the number of shares traded also rose to average at over 40 million shares traded over the past few days.Readers can view the above trading action in the chart below: HIPH Daily ChartThis piece thus takes a look at HIPH and reviews the recent events which have had such an impact on their valuation. Through this, the reader can understand and appreciate the fundamentals on which the business is overlain thus make an informed investment decision.

HIPH: An Overview

A lot more on the firm’s history can be read in our last review which can be accessed here.For an overview, however, the firm was founded back in 1886 as the American water works & Guarantee. However, after a long period of morphosis, they finally changed their name to American Premium Water Company back in 1998 and oriented their vision towards the cannabis sector, working towards the development of cannabis water.The firm currently comprises of a large workforce which supplies cannabis water to their clients. They have also invested greatly in a number of subsidiaries thus currently own LALPINA HYDRO, LALPINA HYDRO CBD, Gents, Worthy, and FashionCoinX. Through this, they are working towards meeting their primary goal of being the leading distributor of cannabis water within both the United States and Canada.

Recent Developments

The firm has been working towards ensuring that they remain atop the cannabis water market. As a result, they have made a number of plans to achieve this, the key being their M&A activity pipeline as well as broadening their product line.

M&A Activity

According to management, HIPH is currently looking at 4 different M&A transactions. These are meant to ensure that the firm achieves it synergy goals and is able to implement their strategic vision comfortably and within the set timelines.The above follows their most recent product launch, LALPINA Hydro CBD beverage. The launch was followed by the usual teething problems associated with the website as well as logistical issues on delivery. Furthermore, they have been working at ensuring the turnaround times between the time of order and delivery are minimized so as to make the process more efficient over time.In line with the above, HIPH has a specific set corporate strategy which they unveiled earlier this year; ingrained in three words: ‘Brand.Luxury.Lifestyle’. The management, in its quest for deal flows, seeks to ensure that they meet the three measures as well as the company’s vision. In line with this, the firm’s CEO, Ryan Fishoff was quoted stating:

“I see a tremendous amount of deal flow, but management and the Company want to ensure that any acquisition that is completed fits within the long-term vision and business plan that will add shareholder value.”

Source:Presently, therefore, the firm has a lot of faith in their long-term strategy execution and in their future valuation and so do the analysts at SeeThruEquity.

SeeThruEquity’s Valuation

SeeThruEquity analysts have provided a higher valuation of HIPH setting their target price at $.30, a 100% upside from their previously expected price of $.15 and a potential upside of 471.4% from their price then of $.0525 as at October 9, 2018.The valuation follows their analysis of the CBD beverage market segment. According to the firm, the United States generated about $820 million in CDB sales in 2017, a figure which they expect to grow at a compounded rate of 54% to $3 billion by 2020. Furthermore, backed by the classification of cannabis as a Substance I drug, the growth in the sector is further expected to be heightened.With HIPH’s product also has benefited from the launch of one of their brands – Gents – being featured during the launch of Showtime Network’s program, Axe Capital, SeeThruEquity has stated that their outlook for HIPH is that of an ’intriguing speculative growth company’ which currently targets the CBD, blockchain and lifestyle consumer goods segments. This was the basis for their valuation.

Conclusion

With both the firm putting significant resources into their growth as well as analysts having such a positive outlook towards their future, it remains quite clear that HIPH is one the path towards higher capital gains. We, therefore, remain bullish about the company’s future.We will be updating our subscribers as soon as we know more. For the latest updates on HIPH, sign up below!Disclosure: We have no position in HIPH and have not been compensated for this article.