Why Basketball Legend Shaquille O’Neal Grabbed 7 Million Shares of an Under-the-Radar NASDAQ Company
A recent “big beverage buyout” has vaulted this company to #1 status as the world’s largest independent water company.
Research By James Dale Davidson
May 20, 2021
What would be so unique – and so promising – about a little-known NASDAQ company that basketball Hall of Famer Shaquille O’Neal would join the company’s advisory board and become the largest shareholder of the company? That’s what recently happened with an under-the-radar enhanced water company – The Alkaline Water Company (NASDAQ: WTER) – that happens to be one of the hottest beverage stocks in the market right now. What likely grabbed “Shaq’s” attention– in addition to the company’s soaring sales – is the company vaulting to #1 status as North America’s largest independent water company.
That happened in March, when the company’s biggest competitor, Essentia Water, was acquired by Nestlé USA for a reported $1 billion.
Watch now or continue reading for my top five reasons why The Alkaline Water Company is my #1 stock recommendation for 2021.
Increased Visibility – and Shaq’s Brand-Building Experience – Could Help Propel Even Faster Growth for The Alkaline Water Company
My analysis shows that The Alkaline Water Company could be the next prime acquisition target for “Big Beverage” – something that could bring windfall profits to investors who get in now – just like Shaquille O’Neal. As you’ll see, the company was an attractive acquisition target even before Nestlé USA’s acquisition of Essentia thanks in large part to its diverse line of enhanced beverages. In fact, the company’s flagship brand, Alkaline88®, – can be found in more than 75,000 stores nationwide.
Now the company stands to benefit – in a huge, 7-foot-one-inch way – from the power of Shaquille O’Neal’s stamp of approval…the influence of his celebrity endorsement…and the skill he brings to the table with his business expertise.
While Shaq is obviously best known for his Hall of Fame basketball career – where he won four NBA championships and a Most Valuable Player award – in his post-playing days he has enjoyed a great many business successes. These include a successful career as a real estate entrepreneur…plus he has helped grow the brands of companies such as Icy Hot, National General Insurance and Carnival Cruise Lines.
In addition, in 2019 O’Neal began endorsing Papa John’s pizza – and purchased nine franchise locations – greatly helping the company rehabilitate its image and re-establish its brand. Now Shaq is bringing that proven history of brand-building success to the advisory board of The Alkaline Water Company (NASDAQ: WTER).
The Awesome Power of Celebrity Endorsement
The impact that a world-famous basketball icon like Shaquille O’Neal can have on the potential exposure for a company like The Alkaline Water Company is truly massive. After all, celebrities have shown that the mention of a company – in either a positive or negative way – can have a significant impact on the company’s share price. Case in point…in October 2015, Oprah Winfrey announced that she was such a huge believer in the Weight Watchers program that she was purchasing a stake in the company, WW International (NASDAQ: WW).
That announcement – made via Twitter – helped propel a staggering 92% increase in Weight Watcher’s share price within just a few days…and by the end of November 2015, the stock was worth $27.76 a share – a 279% increase from the stock’s low point of $6.79 a share before Oprah’s announcement.
In February 2018, celebrity influencer Kylie Jenner – with over 25.5 million social media followers – had a devastating impact on the fortunes of investors in Snap Inc (NYSE: SNAP), the parent company of social media platform Snapchat. Jenner tweeted a negative review of Snapchat after the company had changed its user interface…and the impact was sudden:
Snap Inc’s market cap plummeted by over $1.3 billion within 48 hours of Jenner’s tweet, demonstrating the power of celebrity influencers in a big way. There’s no question that Kylie Jenner’s tweet had a massive impact on the valuation for Snap Inc. – and that was with Jenner having 25.5 million social media followers.
The potential impact of Shaquille O’Neal endorsing The Alkaline Water Company (NASDAQ: WTER) to his nearly 35 million social media followers could actually be far greater than Kylie Jenner’s or Oprah Winfrey’s influence! The Alkaline Water Company (NASDAQ: WTER) has already posted a remarkable 89% compound annual sales growth rate over the last five years and the company was a prime potential acquisition target before this powerful endorsement. Now it is an even more attractive target.
For all those reasons, early investors in this company could see significant upside from my #1 Stock Pick for 2021. But the reasons to invest now don’t stop there. Here are the other 5 surprising reasons why shares of this company – my #1 stock pick for 2021 – could help you potentially rake in windfall profits:
Reason #1: Global Bottled Water Sales Are Soaring Sharply Higher
More and more people are now drinking bottled water…not only to replace soda…but also to replace tap water. Pre-pandemic, Americans spent $18.5 billion on bottled water each year, and that was projected to rise to $22 billion by the end of 2024. And according to a report from industry expert Grand View Research, the global bottled water market is expected to reach $215.12 billion by 2025 – posting a compound annual growth rate of 7.4% over the next six years. Again, these numbers could explode as people across the world focus on improving their health by drinking healthier water … with all of its benefits.
The quarantine lockdown exploded demand for The Alkaline Water Company (NASDAQ: WTER) signature product … and this demand will remain elevated in a now obsessively health conscious world.
Worldwide Bottled Water Consumption Is Soaring!
There’s no question that this explosive growth in the bottled water industry is great news for my #1 stock pick for 2021: The Alkaline Water Company (NASDAQ: WTER).
But the growth in the bottled water market is only part of the story. That’s because The Alkaline Water Company (NASDAQ: WTER) is poised to benefit from a powerful force that could soon impact hundreds of millions of consumers.
Reason #2: Expanded Reach into New Markets Could Propel Even Faster Growth for The Alkaline Water Company
Already The Alkaline Water Company has demonstrated remarkably quick sales growth, posting a remarkable 89% compound annual sales growth rate over the last five years (excluding 2020 numbers.) But the company has taken a few significant steps over the past few months that could propel even faster growth, including:
- In February 2021, the company announced the signing of an agreement with Yesway, one of the fastest-growing convenience store chains in the United States.
- Yesway will now carry the company’s new line of CBD-infused A88CBD lemon-lime flavored water as well as four flavors of gummies in approximately 365 convenience stores across the Midwest. This is a critical first step toward helping The Alkaline Water Company (NASDAQ: WTER) become a trusted national brand and one of the leading brick-and-mortar CBD providers in the nation in the next 12 to 18 months.
- In March 2021, the company announced the signing of a partnership agreement with Tiendas Sindicales, a superstore grocery chain and food service and vending provider in the Mexican Free Trade Zone. Roughly six million workers purchase products from their locations each month, providing The Alkaline Water Company a significant opportunity to establish a presence in Mexico – a major international market that leads North America in bottled water consumption.
- In February 2021, The Alkaline Water Company announced a game-changing new distribution agreement with Hensley Beverage Company – one of the largest beverage distributors in the U.S. This agreement helps the company not only get more SKUs in grocery stores but could also dramatically increase the company’s presence in the convenience store market.
Adding new, untapped markets – including international expansion and growth into the convenience store market – could drive sales upward…and the company’s stock could go along for the ride.
Reason #3: Efficiency and Growth: The Alkaline Water Company Appears to Be the Most Efficient Bottled Water Company on the Planet
It’s virtually unheard of in today’s competitive environment, but The Alkaline Water Company grew from $0 to $48-52 million in sales in just 7 years with no traditional advertising.
As a result, you can find the company’s products virtually everywhere. Go to your local grocery store and there’s a very good chance you’ll see Alkaline 88® prominently displayed on the shelves. The product is already in more than 75,000 retail locations from coast to coast. You’ll find Alkaline 88® in national retailers across the country, including Safeway/Albertsons, Walmart, Kroger, CVS, and other top regional and local supermarket chains. In fact, Alkaline 88® is currently sold in nine of the top 10 grocery chains.
The Alkaline Water Company (NASDAQ: WTER) has eight co-packers capable of producing $100 million worth of Alkaline88® per year. These plants are strategically located within 600 miles of 95% of the U.S. population. This significantly reduces transportation costs, an important consideration when moving heavy items like bottled water.
Not only is the company posting impressive growth without massive advertising expense … it also appears to be the most efficient bottled water company on the planet. The company has generated more than $2 million in sales per employee, making it about 10 times more efficient than its competitors, who generate an average of $220,000 in sales per employee. Part of the reason for this great efficiency is that the company uses “co-packers” to drastically reduce capital requirements while minimizing shipping costs to retailers.
Reason #4: Buyout Frenzy Underway – Could The Alkaline Water Company Be the Next Big Beverage Target?
Bottled water sales exceed those of carbonated soft drinks, long considered the most popular beverage in America. And at the same time, soda sales have been steadily declining for 13 years. According to an article in Fortune, since 2004, “carbonated soft drinks have shed 1.6 billion cases in volume.”
With the massive consumer psychological shift toward improving health and strengthening immune systems, soda sales face an even bleaker future.
This helps explain why Big Beverage is paying outrageous prices to acquire bottled water companies. For example:
- Coca-Cola paid $4.2 billion for Vitaminwater, and $220 million for Topo Chico, a maker of sparkling mineral water.
- Keurig Dr. Pepper Inc. paid $1.7 billion for Bai Brands, and $525 million for CORE hydration water.
- Cott shelled out $78.5 million to acquire The Mountain Valley Spring Company.
- Coke’s acquisition of BodyArmor handed that company’s shareholders a 3,200% return!
I believe The Alkaline Water Company (NASDAQ: WTER) could be a prime candidate for acquisition by one of the big beverage companies because it has:
- one of the fastest growing brands in the fastest growing beverage category
- state-of-the-art technology that creates alkaline water without the use of chemicals
- an efficient operating structure that results in industry-leading sales per employee
- a distribution network that minimizes both capital needs and transportation costs
- Plus, Nestle USA’s recent acquisition of Essentia — for a reported $1 billion — now makes The Alkaline Water Company in the top spot as North America’s largest independent water company…and potentially an even more attractive acquisition candidate!
An efficient operating structure that results in industry-leading sales per employee and a distribution network that minimizes both capital needs and transportation costs … makes The Alkaline Water Company (NASDAQ: WTER) an even brighter potential acquisition target for big beverage companies.
Reason #5: The Company Has Introduced a New Infused Line of Products that Could Take the Market By Storm
The company recently launched an infused beverage division, featuring what I expect to be some hot new products. The first is a zero calorie, all-natural flavored alkaline water – the first flavored alkaline water on the market, which once again gives the company a first mover advantage.
It also launched its A88CBD product range that includes:
- Hydrating hand and foot cream
- Bath salts
- Muscle salve
- Essential oil
- Lip balm
- Oil tincture
- Vegan gummies
This adds value to investors in a company that has already proven extremely adept at growing the business exponentially through word of mouth alone.
With these additional products on board The Alkaline Water Company is an even more attractive acquisition target to big beverage companies.
Bottom Line: I’m Recommending The Alkaline Water Company as a “Strong Buy” to my Strategic Investment newsletter subscribers
For these 5 reasons and more, I believe an investment in The Alkaline Water Company (NASDAQ: WTER) could bring a potential windfall profit over the next several months for those who buy the company’s bargain-priced shares today. Not to mention the blockbuster addition of Shaquille O’Neal to The Alkaline Water Company team, which could significantly raise the company’s visibility and lead to even greater upside potential.
I’ve prepared a comprehensive Special Report to tell you even more about The Alkaline Water Company (NASDAQ: WTER). YES! There’s more to this incredible story. It’s called NASDAQ Sleeping Giant— and a copy is yours FREE when you accept a risk-free trial subscription to my newsletter, Strategic Investment. Besides what the stock could potentially hand you in gains, I also want you to try the company’s signature water for yourself. Once you taste Alkaline88, you’ll understand the loyalty of the drinkers of the company’s products. That’s why I secured an exclusive coupon for you, which you’ll get along with that free report.
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About The Writer
Visionary investor James Dale Davidson has more than three decades of experience helping investors build wealth by providing accurate “big picture” forecasts and discovering hidden profit opportunities before Wall Street catches on. And he has demonstrated unparalleled skill in finding unexpected profit opportunities during three market crashes.
The investment potential for this rapidly-growing beverage company is just one of the latest opportunities to make significant profits from a revolution in consumer buying habits that major media outlets have largely ignored. Don’t miss this opportunity. You can try Alkaline88 for yourself by using the coupon attached to your free report.
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