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Bear Of The Day: Alkaline Water Company (WTER)

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Alkaline Water Company (WTER - Free Report) is a Zacks Rank #5 (Strong Sell) but I am sure that will turn around in the near future.  The point of this Bear of the Day article is that sometimes a great idea can come across to you when the estimate trend is at its lows.  This is just that sort of thing.

I had the pleasure to speak with the CEO of Alkaline Water a few weeks back and I got to hear a side of the story that I am not sure every analyst on the street has heard.  I haven't had a good chance to tell that story yet... but I will in time and I assure you that it is a good one.

For that simple reason, I have decided to highlight WTER as the Bear of the Day... and this will hopefully put it on your radar screen as this is name that I will be looking to add to one of my subscription services down the road.  With the Zacks Rank at the lowest level, now is not the time... but it will happen at some point.

Market Cap

One of the thing that is holding this story back is the market cap.  At less than $100M, it is hard to add it to one of my services which could see anywhere from $4M - $8M of investor dollars flow into it.  That would cause a dramtic move in a name like this.

I am sure that other analysts have the same issue with this company, so know that when this issue gets solved a lot of other issues will probably go away as well.

Water In The Pandemic

The CEO told me a great story about how the pandemic actually helped his business.  The meat of the idea is that when people began hording toilet paper and other essentials, restrictions were put on some items.  Only 2 packages of water per family forced some people to buy brands that they would not have normally tried.

This has led to good sized inroads for market share gains and in many cases wallet share.  Alkaline Water benefited from the lockdown and if there are future lockdowns I am sure they will benefit from that as well.

CBD

The main reason why I spoke with the CEO is their new CBD venture.  This looks to be a great growth opportunity for the company and when the time is right I will share what I learned with the subscribers of Stocks Under $10 or Home Run Investor --- which ever service this stock will fit in best with.

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