Two of the largest names within the leisure world simply joined this Firm.
Simply a few years in the past, Forbes named certainly one of them because the highest-paid actor – beating out Matt Damon, Tom Cruise, Robert Downey Jr. and even the Rock, Dwayne Johnson.
In that very same yr, the opposite was named the richest hip hop mogul on the planet.
Collectively, they’re about to take the world by storm with this huge announcement.
However earlier than I inform you about what they’re as much as and how one can experience their wave, let me clarify just a few essential issues.
You’ve heard how celebrities and athletes have made tons of of tens of millions investing in offers nobody else has entry to.
Final yr, he was reported to have turned his US$6 million funding in sports activities drink BodyArmor – sure, the drink you see at each UFC occasion – right into a $200 million-dollar rating.
You’ve seen big-name rappers earn more money from these investments than they’ve of their whole music profession.
Simply ask 50 Cent who reportedly made $100 million from his Vitaminwater funding.
Reality be instructed, many of the wealthiest rappers and athletes aren’t as wealthy as they’re due to their music or respective sports activities.
In response to Forbes, Dr. Dre’s Beats headphones cope with Apple made him the third richest individual in hip-hop.
Jay-Z and P. Diddy – each have made a killing on their investments.
Jay Z has made tons of of tens of millions from trend, leisure, and music.
His Armand de Brignac champagne – which, in response to Forbes, is his “single most lucrative investment.”
After all, it’s not simply good investing that helped these celebrities take their cash to the highest.
It’s the ability of their model and their endorsement expertise that permit them to affect their investments into ridiculous income.
For instance, when Jay Z heard the adverse feedback directed on the hip hop neighborhood by the blokes at Cristal Champagne, he instantly boycotted them.
However he didn’t do it simply because he may. He did it to generate profits.
He then bought the champagne model Armand de Brignac…
His endorsement led to hovering gross sales, and tons of of tens of millions of {dollars} for himself.
In response to Forbes, Diddy makes the majority of his money – someplace within the “low-to-mid nine-figures” – from his huge 50/50 revenue cut up on the Ciroc Vodka cope with Diageo.
Each month, Diddy collects eight-figures from that deal. Each. Single. Month.
I promise you; it isn’t as a result of I’m attempting to show you a lesson about superstar endorsement – that is an funding publication, in any case.
In only a bit, I’m going to share with you one thing huge.
It’s one thing that I consider may ship shares of this one Firm hovering.
It’s an funding concept that not solely contains a number of the greatest names within the leisure world however is in an area that’s simply one of many greatest new well being tendencies on the planet.
And better of all, it contains one of many celebrities I simply talked about. And two different huge ones that I haven’t even talked about.
When phrase will get out about this announcement, the media retailers shall be clamoring to speak about it.
And we all know what can occur to shares after they draw that type of consideration.
The Huge Beverage Market
You could have seen a standard theme.
Outdoors of Dr. Dre, the largest winners for many of those superstar moguls got here from one thing you may drink.
The beverage sector is by far one of the worthwhile cash makers for celebrity-fuelled investments as a result of consumable merchandise are simply accessible by the plenty and turnover always.
Simply ask George Clooney, who grew to become the highest-paid actor final yr with out making a single film. How? He made $239 million on tequila.
The one drawback for normal traders is that entry to investments within the beverage class is usually non-existent.
That’s as a result of most beverage firms are non-public, and investments into high-growth beverage firms largely belong to elite celebrities and sports activities stars – ones who can assist take these merchandise to the following degree with their stardom.
So except you’re among the best basketball gamers ever, a big-name rapper like 50 Cent, or a well-known actor like George Clooney – the possibilities of collaborating within the profitable beverage house are slim-to-none.
Till right now.
What if you happen to can make investments alongside two of the largest names within the leisure world – each of whom have individually invested greater than $20 million every?
What if you happen to can put money into a well being craze that’s not solely sweeping the nation however is endorsed by one of many greatest celebrities within the well being {industry}?
At the moment, I’m going to introduce you to only that.
It’s a Firm that already has its merchandise in nearly each main grocery store in the USA, together with Walmart, Kroger, Albertsons, Costco, and even Complete Meals.
It’s a Firm that’s ranked because the fastest-growing U.S. model in its class.
In truth, it simply introduced yet one more file quarter of gross sales – up practically 30% year-over-year.
However that’s not all.
It’s about to take its model into one of many greatest new well being tendencies of this decade.
It’s no surprise analysts at H.C. Wainwright & Co. have put a value goal on this Firm a lot larger than the place it trades right now – one which even it thinks is conservative:
“…Our…price target appears conservative across a selection of valuation vectors including historical merger and acquisition prices, comparable company multiple analysis, and a conservative take on discounted cash flow.”
In the meantime, analysts at Canaccord Genuity have an excellent larger value goal. They consider this Firm is buying and selling at one of many lowest multiples amongst its friends – though they anticipate this Firm to be rising at a sooner tempo.
However right here’s the largest kicker: neither of the analysts’ targets displays what I’m about to inform you.
That’s as a result of this Firm simply introduced one thing BIG.
It’s one thing that not solely entails two of the wealthiest and most well-known celebrities on the planet but additionally one of many greatest well being and health names.
And it’s about to remodel this Firm into one of many greatest firms in its class.
In truth, will probably be even larger than Kobe’s BodyArmor – which is loopy when you think about that this Firm is buying and selling lower than what Kobe’s funding in BodyArmor is price.
Right here we go.
About to Grow to be One of many Greatest
NASDAQ: WTER – TSX-V: WTER
Over the previous yr, I printed a number of studies on why I believed the Alkaline Water Firm (NASDAQ: WTER) (TSX-V: WTER) was undervalued and why it was a possible takeover goal by the Massive Beverage firms.
When you missed the primary report, I strongly recommend catching up by: CLICKING HERE
For a few of you, what you’re about to learn could sound acquainted.
However I urge you to hold tight as a result of what I’m about to share is greater than ever anticipated.
First, a fast overview.
Briefly, The Alkaline Water Firm Inc. is a number one producer of premium bottled alkaline consuming water produced utilizing the Firm’s proprietary Electrochemically Activated Water (ECA) system, and bought underneath the model title Alkaline88®.
Alkaline88® is now bought in practically 50,000 retail places nationwide in all 50 states, with a distribution that spans greater than 150,000 shops.
These embrace 9 of the highest 10 largest retailers in all the U.S. and two of the most important retailers in all the world.
Have a look:
The Firm has grow to be each the fastest-growing alkaline water firm and the quickest rising premium water model within the U.S.
It’s additionally the primary bulk water model, in response to Neilson.
And people are daring statements contemplating the alkaline water class is the quickest rising premium water class within the U.S.
In response to Canaccord:
“From 2014, alkaline water {industry} gross sales within the U.S. elevated from $48M to $246M in 2016 and are anticipated to develop to $676M by 2020.
The expansion fee is being supported by robust endorsements from athletes and celebrities comparable to Kawhi Leonard and Tom Brady, amongst others.”
And, in response to Zenith International, world gross sales of alkaline water rose to $631 million in 2017 and is quickly heading towards the $1 billion milestone.
Zenith even labeled alkaline water as an “international growth phenomenon.”
Gross sales from the Alkaline Water Firm actually assist that.
Simply check out the Firm’s gross sales progress:
Not solely is the Alkaline Water Firm rising at a tempo sooner than any of its friends, but it surely has single-handedly beat the expansion fee of all the class – yr after yr.
It’s why I believed that they weren’t solely undervalued on the time of my first report however why they have been a major takeover goal.
I listed a lot of these causes in my authentic report, which you will discover HERE.
Since then, the Firm has continued to develop at a speedy tempo.
It simply recorded gross sales of US$10.2 million for his or her first fiscal quarter of 2020, up practically 30% in comparison with their first fiscal quarter 2019.
And, simply a few months in the past, it reported its highest month-to-month gross sales in firm historical past.
However right here’s the perfect half.
All of what I simply instructed you is likely to be overshadowed with what the Firm simply introduced…
The Alkaline Water Firm to Purchase AQUAhydrate
At the moment, the Alkaline Water Firm Inc. (NASDAQ and TSXV: WTER) introduced that it has entered right into a definitive settlement and plan of merger underneath which Alkaline will purchase all the issued and excellent shares of widespread inventory and most well-liked inventory of AQUAhydrate Inc., a personal Los Angeles-based efficiency way of life firm that manufactures and distributes premium bottled water, in an all-stock transaction.
AQUAhyrdate is the high-PH water model created by none aside from Mark Wahlberg – 2017’s highest-paid actor, in response to Forbes.
I’m positive you’ve seen the bottles of AQUAhyrdate in a lot of Mark’s motion pictures, together with certainly one of his newest heart-warming motion pictures about adoption, Instantaneous Household.
Mark has put in over $20 million into the deal.
However that’s not all.
Investing proper alongside of Mark Wahlberg is 2017’s richest hip-hip mogul, P. Diddy – who additionally put in over $20 million.
Collectively, they’ve constructed a powerhouse of a model in AQUAhyrdate and are about to take it to the following degree.
The 2 firms mixed instantly catapults gross sales of The Alkaline Water Firm from the anticipated $46-50 million in annual gross sales this yr to an estimated $65 million, after which upwards of $85 million the following yr.
And it’ll cement the Firm as one of many main impartial hydration firms – one which shall be greater than twice as large as Kobe’s BodyArmor!
A Nice Deal
Mark and P. Diddy have poured in a ton of time and money into AquaHydrate.
However right here’s an opportunity for brand new traders to speculate proper alongside them.
You see, the deal was signed at a share value of US$2.30 – precisely the place the Firm trades on the time of this writing.
And all of these shares are restricted for not less than six months from the time of closing.
Which means traders right now in The Alkaline Water Firm are usually not solely shopping for shares on the similar value as the place the deal was struck, however get to exit earlier than Mark and P. Diddy!
With greater than $40 million invested between the 2 superstars, I’m betting they’re going to do their greatest to make it successful.
Right here’s what P. Diddy needed to say concerning the deal:
“Today, I am confident that we are creating a powerhouse by combining AquaHyrdate with one of the largest, fastest growing alkaline water companies in the world. I look forward to this next stage of growth as we build one of the most recognizable brands for premium water.”
Keep in mind earlier, after I instructed you the way celebrities use their affect to make tons of of tens of millions of {dollars}?
Each Mark and P. Diddy have formally dedicated to new endorsement agreements with
AQUAhydrate when the transaction closes.
In different phrases, they’re dedicated to creating the Firm an absolute monster.
However it’s not simply the 2 of them.
You see, the Alkaline Water Firm is taking up the well being and health class. And whereas Mark is well-known for his well being and health, what higher endorsement can a Firm’s product obtain than having one of the well-known well being and health celebrities on the planet on board?
Alongside Mark and P. Diddy, is none aside from Jillian Michaels – who has additionally dedicated to staying on with a brand new endorsement deal.
Collectively, the three of them have an estimated social media attain of over 74 million followers throughout Fb (NASDAQ: FB), Twitter (NASDAQ: TWTR), and Instagram!
To not point out that each media outlet shall be desperate to have them on their reveals.
Mark has created certainly one of my favourite reveals of all time in Entourage and has starred in a number of the greatest motion pictures of this technology.
Diddy turned a failing vodka into one of many prime vodka manufacturers on the planet.
And Jillian Michaels has grow to be one of the well-known health personalities.
Collectively, I consider they’re going to catapult the Alkaline Water Firm to the following degree.
However once more, that’s not all.
The Greatest Well being Pattern within the World – “p diddy vitamin water”
Whereas the beverage sector represents an extremely profitable alternative, there may be one that’s rising at an excellent sooner tempo.
In truth, firms inside this explicit class are buying and selling at multiples exceptional because the dotcom increase.
Sure, I’m speaking about CBD.
When you recall from a earlier letter, the Alkaline Water is already starting to introduce its CBD-waters into the beverage market.
And only a month in the past, on August 9, 2019, the Firm introduced three all-natural flavored Cannabidiol (“CBD”) infused waters.
However the greatest information of all got here just some weeks in the past.
On August 28, 2019, the Alkaline Water Firm Inc. (NASDAQ and TSXV: WTER) introduced the growth of its Cannabidiol “CBD” product portfolio with the launch of CBD-shots, tinctures, capsules, and powder packs.
These embrace:
To develop and convey these new merchandise to market, the Firm entered right into a Provide Settlement with Centuria Meals Inc. whereby Centuria would be the Firm’s unique provider of water-soluble phytocannabinoid-rich hemp oil.
And that exclusivity is a large deal.
Centuria Meals Inc. is the most important and fastest-growing hemp-based CBD producer within the U.S.
Earlier than the legalization of Hemp and CBD manufacturing through the industry-changing 2018 Farm Invoice, Centuria Meals was the one authorized CBD producer within the U.S., having approvals from Division of Homeland Safety and Customs and Border Safety.
Which means the Alkaline Water Firm isn’t simply one other Firm including CBD to its portfolio in hopes of chasing the CBD craze.
With their merchandise in over 50,000 retail places nationwide in all 50 states and a distribution that spans greater than 150,000 shops, it’s simple to know why the Alkaline Water Firm selected Centuria to be the unique provider.
And that alone may ship shares a lot larger.
Why?
Hashish Multiples
As you’ve already seen, shares of these within the CBD and hashish house are buying and selling at insane multiples.
Just some weeks in the past, we noticed Charlotte’s Internet soar after they inked a cope with Krogers that put their product into 1,350 Krogers (NYSE: Okay.R.).
What occurs when the Alkaline Water begins promoting their product by way of their already-cemented distribution chain of greater than 50,000 retail places in over 150,000 shops – together with Krogers!? Much more when you think about the AquaHydrate acquisition!
Through Forbes:
“Past social media power and superstar backers, the brand new firm will boast one of many largest distribution networks for a CBD-related model in America.
The brand new merchandise are anticipated to be distributed through Walmart, Goal, Safeway, Ceremony Support, GNC Meijer, QT, Albertsons, CVS, Albertson, Kroger, Schnucks, Good & Ultimate, Jewel-Osco, Sprouts, Bashas’, Stater Bros. Markets, Unified Grocers, Bristol Farms, Vallarta, Superior Meals, Ingles, HEB Brookshire’s, Publix, Shaw’s, Raley’s, Meals Lion, Harris Teeter, and Competition Meals.”
These potential gross sales aren’t even included within the Firm’s gross sales forecast.
However that’s not even the loopy half.
When the Alkaline Water begins to roll out these CBD merchandise, and analysts start to see these merchandise being bought, the Firm may shift from the beverage class to a hashish one.
And that seemingly means a re-rating of their inventory.
In response to FTI Consulting in June 2019, Canada’s prime largest hashish firms have been buying and selling at a mean a number of of a whopping 55.8x a number of to their LTM (final twelve months) income.
If the Alkaline Water Firm even comes near that a number of, it might be price over $2 billion right now! That means a share value north of $40!
It trades at simply over $2 right now.
After all, I’m not saying it’s going to $40 – particularly since I consider hashish multiples are too excessive, and the incontrovertible fact that all the Alkaline Water Firm’s sale proper now are water.
However what we do know is that the Alkaline Water is aggressively pursuing the CBD path, cemented by inking an unique cope with one of many greatest CBD firms within the U.S.
Moreover, I don’t know of 1 CBD firm that presently has a much bigger distribution community than that of the Alkaline Water Firm.
And with the acquisition of AquaHydrate, which brings endorsement from a number of the greatest celebrities on the planet, we may quickly see Alkaline CBD merchandise flying off the cabinets.
And that’s an enormous deal.
I believe Mark Wahlberg feels the identical manner:
“When Sean and I first acquired concerned within the enterprise, our imaginative and prescient was to construct a way of life firm targeted on well being and wellness, and that’s what we’ve completed.
The AquaHydrate and Alkaline 88 manufacturers align nicely and can assist thrilling improvements in flavors, glowing, and CBD merchandise.“
The Development of the Alkaline Water Firm
5 years in the past, the Alkaline Water Firm entered into one of many hottest beverage markets: alkaline water.
At the moment, the Firm has reworked into the fastest-growing and one of many largest alkaline water manufacturers on the planet.
The Firm is already thought-about by many to be a major takeover goal by Massive Beverage.
And with the acquisition of Aquahydrate, that focus on simply acquired even larger.
“p diddy vitamin water”