InnSuites Hospitality Trust (IHT) stock prices were up staggering 82.57% as of the market closing on May 10th, 2021, bringing the price per share up to UDS$6.39.
Revenues Suffer During Pandemic
The onset of the global pandemic and the scope of challenges presented by the coronavirus resulted in a significant decrease in revenues reported by IHT for Q2 2021. The second quarter of the fiscal year 2021, spanning from May 1st, 2020 to July 31st, 2020, reported revenue of roughly USD$1 million. This is a significant decrease from the USD$1.54 reported for the same time period of the previous year. These numbers represent basic earnings per share of USD$(0.14) in Q2 2021, whereas Q2 2020 reported USD$(0.05).
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Diversification Investment
2019 had seen the company make an initial USD$1 million bond diversification investment, convertible into 1 million shares of the privately held UniGen Power, Inc. (UPI). IHT also holds 2 million warrants convertible into 2 million UPI shares in addition to the USD$1 million investment that could be converted into 1 million bonds. Combined, this could give IHT a 25% stake in the company that develops patented high profit potential new efficient clean energy innovations. This is doubly promising given how UPI has kept IHT informed of its progress on these innovative developments and plans for its first Prototype to be operational by the end of June 30th, 2021.
Adapting to the Global Pandemic
Because of the continued economic and travel industry slowdown as a direct result of the coronavirus and ensuing government regulations and restrictions, IHT has suffered over the past few quarters. Hospitality industry performance for IHT was down in the third quarter of the fiscal year 2021. With Q3 2021 having shown improvement over Q2 2021, in conjunction with the steady global rollout of vaccines in the drive for universal immunizations, IHT is confident that it will continue to grow into the fourth quarter of 2021 and beyond.
Potential of IHT Stock
IHT management believed that IHT stock is undervalued, indicating the potential for substantial future profit. With the stock being held on to by shareholders, small company capitalization, recent significant profits being generated from asset sales well above low book value, a well as the company continuing assets held at low book values believed to have a substantially higher inherent market value all serve as indicators of untapped potential.
Future Outlook for IHT
With the world hurtling towards economic normalcy as it collectively strives to gain control over the rampant pandemic, IHT is poised for substantial growth in a post-pandemic environment. With a diversified portfolio and many options available to them, the company’s shareholders are confident in significant and sustained increases in shareholder value.