Celsius Holdings (CELH) Has A Proven Energy Drink Seller

With the gains Monster Beverage Corp. (Nasdaq: MNST) has had since 1995 when they were a mere penny stock, Energy Drink Stocks have been on investors radars. Cuba Beverage Co. (Pink: CUBV) could be the next one, or it could be Celsius Holdings Inc. (Pink: CELH), the makers of Celsius, Your Ultimate Fitness Partner, to go from pennies to dollars. CELH stock closed at $0.37, up .07 (21.31%) in the last trading session after reporting Q1 results on Monday.

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CELH Stock Chart:

Market Cap: 7.47M
Enterprise Value: 10.76M
Price/Sales (ttm): 0.70

52-Week High
(Apr 9, 2012): 0.45

52-Week Low
(Oct 12, 2011): 0.14

Avg Vol (3 month): 12,479
Avg Vol (10 day): 9,438

Shares Outstanding: 20.18M
Float: 9.95M
% Held by Insiders: 53.62%

Ytd Pct Change: 76.19%

Perspective: Where Muscle Pharm Corp.’s (MSLP) products are catered to Body Builders and Athletes, Celsius’ products are catered to the celebrity fitness freak in you in pursuit of the healthy lifestyle.

Celsius Holdings reported their Q1 earnings on Monday with an increase in revenues to $2.5 million, a 13% increase compared to Q1, 2011; $2.2 million. The majority portion of the increase is attributable to increased international sales and a reduction of discounts, promotions, and returns compared to Q1, 2011. Even better though is that the Q1 revenues were 41% greater than Q4, 2011 revenues.

Operating expenses remained in-line totaling $1.3 million for Q1 compared to $1.2 million for the same period in 2011. Although Celsius reported a net loss of $536 thousand for Q1 compared to a net loss of $460 thousand in Q1, 2011, the increase of net loss is attributable to a one time positive accounting adjustment recorded in 2011 totaling $200 thousand. The Q1 net loss was however -25% less the the net loss from Q4, 2011.

So, it looks like Q1 of 2012 was a positive quarter for CELH. Q2 should be even better considering the Company hired 5W Public Relations, one of the country’s largest and most respected public relations firms, two months ago this week. The Company also engaged in a “brand awareness” campaign by hiring Find and Convert, one of the country’s leading social / digital media companies.

So Where Is CELH Heading?

Looking back at quarterly revenues, it appears that Celsius is pretty much stuck in a sales rut unable to break the $3 million mark for any given quarter except one:

Q4 2011 – $1.8 million
Q3 2011 – $2.5 million
Q2 2011 – $2.0 million
Q1 2011 – $2.2 million

Q4 2010 ~ $135,000
Q3 2010 – $1.8 million
Q2 2010 – $4.1 million
Q1 2010 – $2.3 million

Q4 2009 – $2.4 million
Q3 2009 – $1.3 million
Q2 2009 – $1.2 million
Q1 2009 ~ $1.0 million

With that said, Celsius is generating top-line numbers consistently. Therefore, this engagement they have taken on with 5W and Find and Convert should boost the Company’s brand and recognition in the growing health and fitness market. IF Celsius could land a deal with “Body-For-Life” or “The Biggest Loser” to have their no-calorie pre-workout and post-workout drink, CELH stock will become another MNST.

Note: For those of you who didn’t know, Monster Beverage Corp. (MNST) was an actual penny stock in the 90’s. If in December, 1995 you invested $1,000 into MNST when it traded at $0.59 and still held it today, your $1,000 would be worth over $150 thousand, a gain of over 15,000%.

About CELH Stock

Celsius Holdings Inc. markets Celsius®, Your Ultimate Fitness Partner®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. Information about Celsius Holdings Inc. and Celsius, Your Ultimate Fitness Partner®, is available on their website: www.celsius.com

Bottom Line: The penny stock of Celsius Holdings Inc. (CELH.PK) is worth adding to the list of penny stocks to watch together with CUBA Beverage Co. (CUBV). Beverage stocks are always something to monitor as large brands are always looking to acquire smaller ones to add to their portfolio. CELH has proven now for over three years that they have a product that sells itself. What are the possibilities now that a real PR firm is working for them?


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