January 29, 2015 - InvestorsHub NewsWire - About: Celsius Holdings, Inc.
(CELH), Includes: DPS, KO, MNST, PEP
Summary
- After appreciating 47% last year, we believe much
bigger gains are ahead in 2015 for Celsius Holdings,
Inc.
- A new management team, brought in three years ago, has
dramatically turned things around through a successful rebuilding
and rebranding initiative.
- Changing consumer trends, show traditional soft drinks
are declining in popularity, while the functional beverage market
experiences broad appeal and increasing public acceptance of newer,
innovative brands.
- Industry data shows that most of these new brands are
developed by small, entrepreneurial companies, and after a
successful “proof of concept” phase are acquired by larger industry
players.
- The “calorie-burning” or negative-calorie category,
pioneered by Celsius, is experiencing a revitalization with
Nestlé’s November 2014 announcement that they will develop a new
product in this beverage category.
Before beginning our thesis on Celsius Holdings, Inc. (OTCPK:CELH), I feel that it is important to give the
reader of this article a bit of background and a salient point of
reference.
After retiring from a 35-year span in the securities industry, I
established Altitrade Partners in November of 2013. I am now doing
what I love most, pursuing my passion for discovering small,
entrepreneurial companies that are undiscovered and unrecognized by
Wall Street, and writing in-depth reports about them.
The micro-cap space, which is where most of these companies are
found, is full of promising young CEOs and innovative ideas that
offer hope of finding the next disruptive technology, or new
product that will propel the company on to the mainstream
investment stage, thereby rewarding early investors with profits
beyond their wildest imagination.
Based on our experience, many, if not most, of these companies
are fraught with hidden risks that inexperienced investors may not
understand, or even know about, unless they perform thorough and
exhaustive due diligence on the company, the industry and the
competition. Even then, many of these companies will ultimately
fail for two reasons, incompetent management and the inability to
raise capital on favorable terms.
Believe me when I tell you that over the course of 40 years of
investing, we have made our share of mistakes. Our five-year performance numbers reflect
a few of those more recent mistakes, but on a 1, 3 and 10-year
basis, we have handily outperformed most major benchmarks by
investing in micro-cap companies. The takeaway for us is that
making mistakes in micro-cap investing are unavoidable, but that
those mistakes will also teach an investor some very important lessons.
Adding micro-cap stocks to a portfolio, over time, reduces risk
and increases returns, as has been shown in numerous studies. A few
of our favorites include a white paper by Altair Advisers and a study
by Denver Investments
Institutional on the subject of Micro-cap investing.
It is within the context of understanding the risks inherent in
micro-cap investing that we offer the following for consideration
by investors who are comfortable with high-risk investments, and
who have the patience to weather through the inevitable ups and
downs that micro-cap investing entails.
We first learned of Celsius Holdings,
Inc. (OTCPK:CELH) from an article that
Herb Greenberg had written shortly before the formal launch of a
calorie-burning product developed jointly by Nestlé S.A. (OTCPK:NSRGY) and The Coca-Cola (NYSE:KO) Company called Enviga.
While we were intrigued by this new beverage category, we were
even more intrigued by the fact that these two beverage giants were
not the first to come to market with a calorie-burning beverage. A
small company located in South Florida, called Elite-FX, had
already brought their own calorie-burning product, called Celsius
to market back in 2005. Elite-FX, later, was renamed Celsius
Holdings, Inc.
Over the course of the last year, we have written extensively
about Celsius Holdings, Inc., and the beverage industry trend that
we see towards healthier, more functional beverages. We penned an
in-depth, 22-page report on our website,
written 14 articles on our Google blog page, and recently wrote
ourfirst Seeking Alpha article on this
topic, when Nestlé, S.A. announced that they were in the
process of developing a new calorie-burning beverage that they
expect will take two years to finalize.
It is not our intention, here, to bog down the reader with a
regurgitation of all our past exposés on this subject. If you want
to take the time to review our work, in more detail, you can go to
our website, where you can access all of our writings.
In this report, we would like to point out the ten compelling
reasons why we believe that Celsius Holdings, Inc. deserves careful
consideration by micro-cap investors.
1. Macro Beverage
Trends
The first thing that we like to look at when sizing up a
micro-cap opportunity, is how does the company and its products fit
within the overall macro trends taking place within a specific
industry sector. In the case of the beverage industry there has
been a growing concern in the C-suites of these companies over
the slowing sales of traditional soft
drinks that contain high-fructose corn syrup and other
ingredients. Increasingly, these traditional beverages, the
foundation of many big beverage portfolios, are now coming under
scrutiny by consumers, and regulators, who are concerned about the
health effects of these products.
At the same time, there has been tremendous growth in the
non-traditional beverage category, including such products as
enhanced waters, specialty teas, energy drinks, coconut waters,
sports drinks and functional products that target a variety of
consumer interests including relaxation, mental focus, digestive
health, hangover recovery, relief from stiff bones and joints, etc.
The size and scope of the functional beverage market has been
estimated to be approximately $60 billion, according to
Euromonitor.
2. Strong Growth Across Many
Channels
A recent report published by
Canadean shows that Celsius' revenues grew at a compound
annual growth rate of 15.97% from 2009-2013, and 38.12% in 2012
over 2011 numbers. The company's 2013 revenues saw a year-over-year
increase of another 38% from 2012 results. We expect 2014 revenues
to exceed those posted in 2013 by over 40%. There aren't many
beverage companies that can say that they've experienced organic
growth at those kinds of levels. If anything, growth levels have
stagnated in the beverage business, as evidenced by the slowdown
many large beverage brands are experiencing.
It is interesting to point out that the most recent data from
IRI's mid-June 2014 report shows that Celsius was in the top
quintile, ranked 112 out of 599 brands in its peer group,
consisting of the Energy, RTD Coffee/Tea, Waters, Isotonic,
Functional, Water and Coconut Water categories. It was also noted
in that same report that of the top 125 brands, 59 (47%) are
declining in sales, while Celsius continues to show meaningful
growth.
We expect Celsius Holdings, Inc. to once again report record
sales for FY 2014. Our internal projection is for total revenues to
come in at between $14-15 million. That would give the company a
YOY increase of 45% at the median level of $14.5 million. Suffice
to say that the Celsius brand continues to experience solid revenue
gains, and increasing market share at a time when other brands are
struggling to keep market share, let alone grow their revenues.
3. Capital Structure
The Celsius capital structure consists of approximately 20.5
million shares of common stock and roughly $10.075 million of debt.
The debt structure includes a $1.5 million convertible note and a
revolving credit line, of which $8.575 million is currently
outstanding. There are also 2200 shares of preferred stock
(Preferred C Shares) convertible into common stock.
Of the nearly 20.5 million shares of common stock issued and
outstanding, there is only approximately 9.0 million shares
available in the public float.
The $1.5 million note is convertible at the discretion of the
noteholder (CDS Financial, LLC.) into shares of common stock at a
conversion price of 0.30 cents. The credit line debt was recently
extended out to December 31, 2016, and carries an interest rate of
5%.
The Preferred C Shares can be converted into Company common
stock at any time until December 31, 2018 at a conversion price of
$0.52 per share. The conversion price per share is based on the
weighted average of the ten daily VWAPs for the 10 trading days
immediately preceding the closing date of August 26, 2013. The
Preferred C Shares accrue a 6% annual cumulative dividend, payable
in additional Preferred C Shares. The Preferred C Shares mature on
December 31, 2018, and are redeemable only in Company Common
Stock.
The Preferred C Shares were issued to CDS in exchange for the
cancellation of a $550,000 short-term loan from CD, an affiliate of
CDS and the cancellation of $1,650,000 in debt associated with the
line of credit with CD.
With regard to the Common Stock, there are currently total
shares outstanding of 20,459,032 shares, as of September 30, 2014,
of which 10,450,737 are owned by companies affiliated or controlled
by Carl DeSantis.
At Celsius Holdings, Inc., they don't have a history of raising
capital through toxic financing like PIPEs and floorless
convertible debt arrangements. It's called death-spiral financing
for a reason! They don't have a track record of diluting
shareholders through suspicious backroom financing arrangements, or
dealing with stock promoters.
Carl DeSantis continues to provide straight debt financing and
lines of credit without all the fancy bells & whistles that
eventually wind up destroying shareholder equity over time.
As a 52% shareholder in the equity of Celsius, holding some 10+
million shares, Carl needs a price increase of only 90 cents in the
stock to make up for the majority of capital that he has provided.
In essence, Carl is supporting his own equity investment in the
company through funding it with private debt. We categorize the
debt of Celsius Holdings, Inc. as "friendly debt" since it is owed
to the company's largest shareholder.
How many micro-cap companies can say that they have a readily
available source of financing that they can turn to, without having
to sacrifice shareholder equity in the process? Dilution is a
micro-cap investor's worst enemy. We've seen too many small,
under-capitalized companies fall prey to its consequences. We don't
worry about that happening with our investment in CELH.
4. The Carl DeSantis Connection
Carl DeSantis's involvement with Celsius Holdings, Inc. is very
important for two reasons. The first is the obvious financial
resources that Carl brings to the table, as discussed above.
Secondly, Carl DeSantis is an experienced businessman, and
multi-millionaire, with a successful background in building
companies, getting them to profitability, and selling them to
larger industry players in order to realize their full underlying
value.
Mr. DeSantis is, perhaps, best known for his building of the
Rexall-Sundown Empire, which he sold in the year 2000 to
Netherlands-based Royal Numico for the hefty sum of $1.8
BILLION.
Mr. DeSantis has written a book outlining the struggles and
challenges that he faced in taking a small vitamin business that he
ran out of his house with his wife, to the task of successfully
assimilating a national chain of drug stores into a high-profile
conglomerate. His book is called Vitamin Enriched.
After reading his book, our assessment is twofold; First, Carl
DeSantis is a man who thrives on the challenge of being an
underdog, and, second, his tenacity is only exceeded by his desire
to win.
5. Valuation
After experiencing a bump in the road in the second quarter of
2014, Celsius Holdings, Inc. appears to be back on
track. Third quarter 2014 numbers reflect
record revenues of $3.42 million, compared to just $2.33 million
during the same period in 2013, a 47% increase. Gross
profit margins remained strong at 39%.
Prior to the Q2 2014 numbers, Celsius saw four consecutive
quarters of double-digit revenue growth, registering sequential
quarterly sales gains of 66%, 61%, 51% and 65%.
More importantly, international results continue to demonstrate
strong growth outside the United States. International revenues for
the third quarter were up 60% to $1.55 million, compared to just
$970,000 in Q3 of 2013.
On the domestic front, revenues also showed a sizable increase
of 38% versus the same period last year. Domestic revenues came in
at $1.87 million compared to $1.36 million for Q3 of 2013.
Looking at the company's balance sheet, we see that as of
September 30, 2014 there was a current ratio of almost 3.5 to 1,
indicating a very strong financial position to build upon moving
forward.
At the end of the third quarter, Celsius Holdings, Inc. had
recorded total revenues in 2014 of $10.02 million, or just under an
average of $3.34 million per quarter. That would put projected
revenues for fiscal year 2014 at approximately $13.5 million,
assuming they can maintain revenues at the current run rate. As we
stated earlier, based on visible sales momentum, our internal
forecast for Celsius Holdings, Inc. revenues has now been bumped up
to between $14-15 million for FY 2014. We expect financial results
to be released sometime in March.
In our opinion, the company stock still does not reflect the
progress that has been made since the new management team took over
in November of 2011.
If we compare the market capitalization of CELH at its peak in
late summer of 2009 versus where we are today, it shows that
investors have far less enthusiasm for this company now, compared
to then, despite having literallycome back from the brink, and
reinventing itself.
In August of 2009, the market capitalization of Celsius
Holdings, Inc. was approaching an astronomical $300 million, on a
fully diluted basis. This was, in part, due to the celebrity effect
of Hollywood darling Katie Holmes being seen publicly drinking a
Celsius beverage in New York City. Their reported revenues at the
time were a paltry $3.48 million for the first three quarters of FY
2009. The net loss for the first nine months of 2009 was $5.33
million. They would ultimately report a net loss of $7.76 million
on just $5.87 million in revenue during FY 2009.
The 2010 fiscal year was even more disastrous, with the company
losing over $19.49 million on just $8.34 million in revenues.
That's when Carl DeSantis decided to implement a management change,
and begin the process of turning things around.
Today, the market capitalization of CELH is around $15 million,
again on a fully-diluted basis. Revenues for the first nine months
of 2014 are $10.02 million, or almost 3X what they were in 2009.
Net losses have shrunk to $2.29 million for the first nine months
of 2014, compared to $7.76 million during the same period in
2009.
In summary, the market cap of CELH has gone from $300
million to $14 million at the same time revenues have
almost tripled.Furthermore, losses have been slashed dramatically
from a peak of $19.5 million in FY 2009 to just over $2.29 million
for the first nine months of 2014.
With revenue growth close to 40% per year in 2012 & 2013,
and equally impressive results expected for 2014, the question
investors, who are looking at this company for the first time,
should be asking is "What would I be willing to pay for a small
innovative beverage company with an impressive growth rate,
especially in an environment where other beverage companies are
experiencing lowered revenue projections and are looking for the
next big idea to jumpstart organic growth to make up for the
decline in traditional beverage consumption?"
Our own valuation model tells us that Celsius Holdings, Inc.
could easily command a 2.5X - 3.5X multiple of revenues. Using a
model that projects FY 2014 revenues at $14.5 million, would put
the market capitalization of Celsius Holdings, Inc. at somewhere
between $36 million and $51 million. On a fully diluted basis that
would imply that Celsius Holdings, Inc. common shares should be
selling at somewhere between $1.09 and $1.55 per share.
In 2014, CELH stock's value increased by 47%. The stock closed
on Friday at $0.51 cents per share, implying potential appreciation
of between 114% and 204%, at some point in 2015, based on our
internal estimates.
If you think that our revenue multiple is a bit on the high
side, remember thatCoca-Cola paid 12X the 2006 actual
revenues, and 6X the 2007 projected revenues of Glaceau's Vitamin
Water in their May 2007 acquisition of that company.
It should further be noted that PepsiCo Inc.'s (NYSE:PEP) acquisition of IZZE Beverage Co. was at 3.8 times
revenue, while deals in the health and wellness categories during
that same year saw a median value of 2.5 times trailing 12-month
revenues.
6. The Attractiveness of Celsius to Big
Beverage
While the average micro-cap investor may not be paying much
attention to this little company, we are fairly certain that their
products and progress have not been lost on the big beverage
companies.
The mid-August announcement that Coca-Cola will take a 16.7% stake in
competitor Monster Beverage sends a couple of signals to
investors in the beverage sector:
1. The Coca-Cola Company believes in the long-term viability of
the energy drink market.
2. The company is willing to look to other brands, which are not
currently a part of the Coca-Cola family, to fuel future
growth.
3. That Coca-Cola will continue to purchase brands to modernize
their beverage portfolio.
It is interesting to note that since 1995, Coca-Cola has spent
$28.7 billion on acquisitions, lagging well behind competitor
PepsiCo which has spent $45.4 billion over the same period,
according to Dealogic.
While it is interesting to look at The Coca-Cola Company as
being the 800 pound gorilla in the beverage and soft-drink
industry, we are more focused on a small division of the giant
whose focus is on finding the next disruptive brand among smaller,
entrepreneurial companies. That division is Coca-Cola's Venture
& Emerging Brands unit.
According to interviews with executives at Coke's VEB unit, the
division looks at hundreds of promising beverage brands over the
course of a year, with most of those never getting a second look
beyond a preliminary, if not perfunctory, assessment.
Data compiled over many years' shows that only 3% of all
new beverage brands make it to the critical "proof of concept"
stage. This stage is identified as the point
where a new brand has achieved annual
revenues of $10 million or greater, and has shown itself as
having staying power based on strong appeal based on consumer's
adoption of the brand.
Even more important is the fact that beverage industry
executives see up to a third (33%) of new beverage company growth
as coming from these small, upstart, boutique brands with innovative new
beverage ideas within disruptive categories.
As an early 2014 article in Forbes
Magazine pointed out "Many large beverage companies have
acquired smaller sports and energy drinks makers to respond to
consumers' increasing appetite for these drinks, and because these
large companies did not have such products in their R&D
pipelines. Pick a major strategic in the consumer and retail space
(any major public consumer or retail company). Now think of the
number of brands they have added to their portfolio over the past
decade. How many did they buy versus build?"
With revenues of over $10 million through the first nine months
of 2014, and the likelihood of ending the year well above that
critical revenue threshold, we think Celsius Holdings, Inc. has
caught the attention of the big beverage players; primarily
Coca-Cola, PepsiCo and Dr Pepper Snapple Group (NYSE:DPS).
7. Succeeding Where Others Have Failed
We started this report out by saying that Celsius is currently
the world's first and only calorie-burning (negative-calorie)
beverage. However, it wasn't always that way. Nestlé, S.A. and
Coca-Cola had been working on their own joint-venture product in
late 2006-2007 called Enviga.
(click to enlarge)
Enviga was a green-tea based product designed to increase the
body's metabolism through something called "thermogenesis" (the
raising of the body's temperature). Both companies were
enthusiastic about introducing a product in this new beverage
category, and the initial publicity surrounding the new product was
met with much fanfare. Datamonitor even went so far as to declare calorie-burning
sodas as the next big new beverage trend for 2007.
We believe that the folks at Datamonitor have it right, but were
too early in their prognostication. Scroll down to read about how
Nestlé, S.A. feels about the calorie-burning category's future
prospects, and what they are planning to do within the next two
years.
The marketing team at Celsius were overjoyed at the prospect of
these two beverage giants entering a new beverage category which
they had pioneered and introduced months before. There is the
feeling, among many marketing executives, that the first to market
with any new idea, concept or product will ultimately garner the
lion's share of that marketplace. Coke and Nestlé's entrance, into
this space, was also a validation of the idea that the beverage
industry was looking to take beverage technology beyond zero
calories.
The Enviga product ran into strong opposition from the nonprofit
Center for Science in the Public Interest, a consumer watchdog and
advocate group, thatchallenged whether or not the marketing claims made by
Coca-Cola and Nestle were both verifiable and certifiable.
Subsequent investigations into the product's assertions yielded
the conclusion that the Enviga product did not have substantial
proof, on a scientific basis, to validate its marketing claims of
being a calorie-burning beverage. An agreement between Coca-Cola
and Nestlé, along with 27 State Attorney Generals, was eventually
reached to resolve the dispute over false advertising, promotion
and marketing. The two companies also agreed to pay a total of
$650,000 in fines to settle the matter.
Celsius Holdings, Inc., on the other hand, went on to develop
additional flavors to the original Celsius and conducted a total of
seven clinical, scientific studies to provide evidence that the
calorie-burning claims made about their product were, in fact,
provable. Many of these studies have been published in
peer-reviewed scientific journals, including The American College
of Nutrition, The International Society of Sports Nutrition and The
Journal of Strength Conditioning and Research.
Celsius is the only beverage product that we know of that has
had its marketing and advertising claims verified and substantiated
by the National Advertising Division of the Better Business Bureau.
(See hereand here.)
Recent news in late November from Nestlé, S.A. validates the idea that the next
potentially big trend in the beverage industry will be
calorie-burning, or negative-calorie drinks. If nothing else,
it shows that one of the largest global giants in the food &
beverage industry believes that a market exists for this type of
functional beverage.
It should be noted that the claims that Celsius makes regarding
their product's calorie-burning properties, take place in
conjunction with diet and exercise, not in the absence of them.
Actually, when you think about where we have been and where we
are going in terms of beverage development, it's just a natural
progression to move from lower calorie and zero calorie beverages
to negative-calorie drinks. The beverage industry is now beginning
to ask the question "Why stop at zero calories?"
It's nice to know that despite their previous setback, Nestlé
continues to work on the development of a calorie-burning beverage.
It seems to show their confidence that the calorie-burning, or
negative-calorie beverage category does have a promising
future.
8. Consumer Reviews Give Celsius a Solid 4.3 out of
5.0 Star Rating on Amazon
We mentioned earlier that the so-called benchmark to seriously
be considered by Coca-Cola's Venture & Emerging Brands Unit was
$10 million in annual revenues. There can be no question that
regardless of whatever functional benefits a new beverage has, it
will fail unless consumers like the taste and it works.
As part of the rebranding and rebuilding process implemented by
the new management team, brought in by Carl DeSantis in October
2011, Celsius Holdings, Inc. made a strategic decision to outsource
all of its direct-to-consumer operations to Amazon.com. This
enabled the company to cut expensive overhead as it pertained to
the ordering, packaging and shipping of their beverage products to
users across the country.
One other benefit that it provides is the ability of consumers
to use Amazon's star-rating system to provide feedback to others
who are contemplating their first purchase of Celsius
calorie-burning beverages.
Based on Amazon reviews, we
continue to believe that more and more consumers are using the
products on a regular basis, as there is mass appeal across three
primary user categories; weight management, gym enthusiasts and
energy drink users who want a healthier alternative to traditional
energy beverages.
Better than two-thirds (66%) of Celsius users give the beverage
the highest Amazon 5-star rating, and overall, among all Celsius
users, the beverage enjoys a very respectable 4.3 out of 5.0 star
rating.
9. Strength in The International
Marketplace
Part of the reason for Coca-Cola's purchase of a stake in
Monster Beverage Company (NYSE: MNST) was that it was felt that Coca-Cola's existing
global distribution footprint could accelerate sales of Monster
beverages overseas. The international marketplace has huge
potential for beverage companies, including Celsius.
While domestic sales of Celsius have been strong, the
international markets represent the greatest opportunity for
continuing robust growth. Celsius products are currently available
in the following foreign countries; United Kingdom, Norway, Sweden,
Finland, China, Dubai/Middle East, Kenya, Nigeria, Argentina and
Brazil.
(click to enlarge)
Of all of these markets, we believe the greatest opportunity
rests in Sweden and Brazil. Our reasoning is quite simple. Swedes
have a history of being among the most physically attractive and
fittest people in the world, in part due to their healthy lifestyle
and integration of exercise into their daily routine. Celsius fits
perfectly into that culture. The brand continues to be embraced by
the region, and with time, we expect further penetration into other
countries including the Netherlands and Denmark where over 40% of
the population in those countries are members of some sort of
health club or fitness establishment.
The real story, however, in our opinion is Brazil. The potential
for international expansion in Latin American, particularly Brazil,
is truly remarkable.
Brazil is second, only to the United
States, in the number of fitness centersfound among its cities.
According to the most recent research data compiled by IHRSA
(International Health, Racquet and Sportsclub Association), Brazil
has over 23,600 fitness establishments compared to 30,000 in the
United States.
In terms of income spent, according to this 2012 Latin America
Report, Brazilians spent some BRL $2.45 billion in 2011 on health
clubs and fitness centers. This staggering amount trails only the
United States and Canada.
Now let's put those numbers into perspective. Brazil has
approximately 200 million inhabitants compared to approximately 320
million people in the United States. Sao Paulo is the state with
the largest number of fitness centers in Brazil with over 6,400
establishments, or one for every 6,445 Brazilians. The second
largest state is Santa Catarina, which has over 1,700 fitness
centers, or one for every 3,487 individuals. The four largest fitness chains
currently operating in Brazil are BioRitmo/SmartFit,
Bodytech, Cia Athletica and Runner.
Surprisingly, we found that roughly 30% of those who regularly
frequent fitness centers in Brazil are over the age of 60. Ten
years ago, that number was only about 5%. What's interesting is
that this age group seems to be more committed to attending fitness
centers, and has a lower drop-out rate among members. This lower
attrition may be attributed to the fact that as they have gotten
older they have come to realize the importance of daily physical
exercise contributing to an overall better quality of life.
The benefits of physical exercise among this older constituency
shows up in increased muscle strength and improved flexibility,
reduction in arthritis symptoms and cardiac problems, and a reduced
likelihood of high blood pressure and diabetes. It also reduces the
chances of depression (something which many older people
experience) as a result of increased serotonin levels and the
social benefits of exercising in a group with other people.
Exercise also helps to better control appetite and helps with sleep
and potential mood disorders from lack of getting quality rest at
night.
What's even more impressive is the growth of the gym industry in
Brazil over the past 15 years, which we then translate into
potential market share and growth for the Celsius brand. At the
beginning of the millennium, in the year 2000, there were only 797
gyms in Brazil. By the end of 2012, there were over 22,000 gyms
with a registered membership of 6.7 million.
With almost 7 million potential users of Celsius in Brazil
alone, the opportunity for explosive growth of the brand in Latin
America is phenomenal.
10. The National Association For Fitness
Certification
The news in mid-October 2014 that Celsius has partnered with
the National Association for Fitness
Certification (NAFC) brings with it the opportunity for
the Celsius brand of beverages to go mainstream across a very
important distribution channel for the company.
There are currently 27,000 active fitness trainers associated
with the NAFC, and each and every one of
those fitness trainers will now, in effect, be acting as a Celsius
brand ambassador to their clients.
This kind of exposure could be just the thing to propel the
brand into prominence among those who make diet and exercise
important priorities in their lifestyle. If this relationship
between Celsius and the NAFC bears the kind of fruit that we
envision, it may not take long for Celsius Holdings, Inc. to
experience a breakout quarter in sales and revenues.
Combine this with what is happening in the international
markets, especially Brazil, and it becomes easy to imagine that
revenues for Celsius Holdings, Inc. could easily double or triple
from their current levels over the next few years.
In conclusion, at Altitrade Partners, we have carved out an area
of investing in micro-caps that we believe offers the opportunity
for investors, who are willing to take substantial, above average
risks, the potential for huge rewards. The key to success in this
area of investing is finding the right company at the right time,
with the right product, the right marketing plan, the right
management team with the ability to execute, the right capital
structure and the right timing.
It is our opinion that Celsius Holdings, Inc. offers all of the
above to investors willing to invest in micro-cap companies and
stay the course.
(click to enlarge)
Note: This article discusses a company whose stock trades for
less than $1 and has limited liquidity. You are urged to exercise
caution and prudence when considering an investment in such
securities, as they entail much greater risks than those stocks
that trade above $1 and have adequate liquidity.
Disclaimer: The opinions expressed herein are exclusively
those of Altitrade Partners. We do not provide investment advice,
and do not offer buy and sell recommendations on any securities
mentioned in our reports. For additional information, including our
full disclaimer, we invite you to visit the Altitrade Partners website.
Editor's Note: This article covers one or more stocks trading at
less than $1 per share and/or with less than a $100 million market
cap. Please be aware of the risks associated with these
stocks. This
article originally appeared on the Seeking Alpha web site. To view
the article in its original format please follow this link:
http://www.seekingalpha.com/article/2857436-10-compelling-reasons-why-big-beverage-may-want-to-keep-their-eyes-on-celsius-holdings