April 20, 2021 -- InvestorsHub NewsWire -- via Digital Journal -- An optimistic shareholder update from Alkame Holdings, Inc. (OTC PINK: ALKM) sent shares higher by roughly 17% last week. The jump came after Alkame's CEO explained how the company adapted to the unprecedented disruption to business and how he positioned his company to emerge from the challenges faced in 2020. Most notable, he addressed how supply and distribution channels were materially affected by the ongoing pandemic and how retail locations faced long-term interruptions to their business. 

Alkame was no exception. But, with the market valuing stocks on what they "will do" in the future, Alkame Holdings is exceptionally well-positioned for a surge in growth as the pandemic eases its grip on a tired nation.

Notably, Alkame made a wise business decision in 2020 by temporarily switching its manufacturing operations to produce quality PPE products such as hand sanitizer for first responders and the medical sector. There, targeting what could continue to be a massive opportunity, ALKM noted that it has secured licensing, regulatory approvals, compliance inspections, certifications, and formulations to expand sales of that best-in-class hand sanitizing product.

While that initiative could provide generous long-term returns, the disruptions to its core business may have had a silver lining. Management said they spent the unexpected downtime to reduce expenses and focus attention on higher-margin revenue opportunities. Moreover, ALKM said it has been able to reset strategies to position its own brands for growth as the markets appear ready to return to more normal conditions. While the markets may move toward normalcy, in some respects, they will never be the same.

Thus, with ALKM being agile enough to respond to changing markets, they could very well seize upon substantial opportunities during the remainder of the year.

Distribution And Logistics Through West Coast Co-Packer

Alkame did capitalize on a significant long-term opportunity. In 2020, they secured a Canadian distribution partner for PPE products that could position its subsidiary to export its products. And while Alkame is waiting for final approvals from the Canadian to accelerate growth through its distributor, its other operating subsidiaries enhanced their brands and strategies to capitalize on an expected snap-back economy.

Several of its wholly-owned businesses are setting aggressive strategies to benefit from an expected surge in economic activity later this year. And as the diversified holding company that owns these subsidiaries, expect ALKM's valuation to grow.

Near-term, its liquid-based food and beverage products, the development of its hemp-based programs, and its enhanced effort to build out a robust online fulfillment services business could drive shareholder value higher. 

Also, its IP portfolio and an already successful water treatment technology are expected to add to the revenue growth. The excellent news is that these ongoing operations play a significant role in its long-term stability and value. That value should be included in its share price. However, as is the case with many nano-cap companies in today's market, good businesses are being substantially undervalued.

Many think that's about to change. And Alkame Holdings could be a beneficiary of the emerging bullish sentiment.

Improving Processes And Technologies

Keep in mind, ALKM has some valuable properties. Moreover, they continue to improve their operational process and technologies that should increase production and lower costs. In fact, that work is paying off, with ALKM saying its operating expenses and losses are continuing to decrease. Better yet, they expect that trend to continue with more streamlined operations through its focus toward online and direct-to-consumer business applications.

West Coast Co-Packer took a lead role as a most valued asset. The company spent the last part of 2020 and the first quarter of this year retooling its space to maximize utilization from its West Coast Co-Packer facility. While staying focused on its hand sanitizer product, they also intensified focus on liquid consumer food & beverage production while maintaining the regulatory and compliance expectations regarding the warehousing and manufacturing of Alcohol.

The great news is that the upgrades to its new facility are expected to almost double its production capabilities by utilizing its high-speed equipment to expand production capacity at its Salem facility. Alkame noted that the new production not only helps diversify its product lineup but will also allow them to advance its third-party health inspections beyond what it can currently accomplish at its Gervais facility. 

Notably, the move to Salem is expected to bring one of the highest-rated compliance certifications available. Thus, with operations at that facility expected to start next month, ALKM should be announcing a milestone that should have a near-term positive impact on market growth from several products.

Expanding Current Business Relationships

While the new facility can expedite growth for new initiatives, investors should keep in mind that Alkame has some potentially lucrative agreements already in place. In fact, despite the pandemic-related slowdown, ALKM said in its update that it has been busy working with new and existing clients to expand relationships. They created developing collaborative opportunities and have onboarded several "amazing partners." Best of all, they plan to leverage these agreements to develop, formulate, produce, and deliver quality products in the food & beverage space.

To expedite growth in those ventures, ALKM implementing a multi-channel distribution strategy with products going direct to consumers. That platform is expected to be deployed over the year. Also, its work toward the acquisition of DistributorCorp will provide an online avenue for Alkame to market Sanitizer and various PPE products and non-hemp related products, including its Alkame brand of premium oxygenated alkaline bottled water. Notably, the platform will enable seamless online purchasing and fulfillment through a secondary website for online fulfillment of its Hemp related products. Those sales will process through its planned "Shop Alkame" portal.

Other assets being revamped, developed, and built out, include www.CbdCopacker.com, www.WestCoastCopacker.com, www.AlkameWater.com, www.DistributorCorp.com. An update to its corporate website at www.AlkameHoldingsinc.com is rounding out the current upgrades.

Breakout In 2021

While the pandemic was an unforeseen and unprecedented interruption to businesses worldwide, companies are hard at work to stay afloat. Alkame has not only kept itself alive but has also contributed to stopping the spread of COVID-19 and at the same time is advancing new strategies to compete in a changing consumer products world.

While the fourth quarter and first-quarter production numbers provided less revenues than expected, the current trends toward easing Covid-19 related supply restrictions could help create a bull market for ALKM products and services in the coming weeks and quarters. Already, there is a weakening of logistical headwinds, and cargo shipping and offloading delays are lessening. And, with that, analysts suggest that the pent-up demand from industry shutdowns should benefit consumer products companies.

The best news of all is that Alkame Holdings not only survived the "storm" that crippled the economy and caused the loss of businesses, jobs, and lives, it's roaring back to the business scene more robust than ever. 

Its improvements to facilities, the streamlining of its process technologies to increase production and lower costs, and its ability to create value-enhancing partnerships sets ALKM up to have a breakout year. And at current share price levels, there is potential for exponential gains.


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SOURCE: Digital Journal 


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