Celsius Holdings Seeing Increased Distribution Demand

Shares of Celsius Holdings (CSUH.OB) touched forty five cents during early trading on Monday after an Investment Nation interview with the company's CEO Steve Haley last Thursday highlighted some important developments for the company.

Most notable of those developments, in my opinion, is the increase in distribution demand as a result of both the recent nationwide advertising campaign and the CROSSMARK signing.

While CEO Steve Haley indicated that some major distribution deals could be announced within the next month or two, my impression is that early 2010 is when distribution is going make a very significant move. As I've emphasized many times before, I thought the CROSSMARK deal was huge and the pending boom in distribution is a direct result of that deal, as well as the advertising blitz that has more retailers looking at the product.

The boom in distribution and awareness should also positively impact the stock price and the small investor wants to be in before the big moves take place. CSUH is already a big mover this year, but things could move quick if the sales numbers start lining up with the increase in distribution.

As always, do your own due diligence and remember, an investment in CSUH is not an investment in next week. You want to look further down the road and weigh up the potential for growth with this company.

In my personal opinion, a buy for the current prices is going to end up looking like a steal later on down the road.

Disclosure: Author is long CSUH

Comments

[Roy Manning:]

Hello VHC

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Best of Luck,
Roy Manning III

Oct 12 06:10 PM

[Market Player:]

NIce work on Celsius. Did you happen to see the way others refer to Celsius? This is an excerpt from the article below Haley’s introduction of Celsius as a calorie-burning soft drink preceded – but was nevertheless quickly overshadowed by – the introduction of another calorie burner, Enviga, a tea marketed by the combined forces of the Coca-Cola Co. and Nestea. Haley and Celsius stood firm, however, and while Enviga’s claims were disputed by the scientific community, helping send the product down a path to its eventual demise, Celsius thrived and is now a fast-growing national brand.
www.bevnet.com/live/wi.../

I thought it would help others get the bigger picture about Celsius.

Oct 12 06:56 PM

[mlongj:]

Market Player

Thanks for the link. What an interesting piece of information. It is fascinating that Coke has already made a failed attempt at bringing a similar product to market. Perhaps this is why Celsius continues to demonstrate, through testing, the validity of the claims made regarding the "calorie burning" effect of the product. If the claims were not true, this product would most likely go the way of Enviga. This is also a postive as the bigger players have seen the opportunity in this type of beverage. Very encouraging indeed!

Long CSUH


On Oct 12 06:56 PM Market Player wrote:

> NIce work on Celsius. Did you happen to see the way others refer
> to Celsius? This is an excerpt from the article below Haley’s introduction
> of Celsius as a calorie-burning soft drink preceded – but was nevertheless
> quickly overshadowed by – the introduction of another calorie burner,
> Enviga, a tea marketed by the combined forces of the Coca-Cola Co.
> and Nestea. Haley and Celsius stood firm, however, and while Enviga’s
> claims were disputed by the scientific community, helping send the
> product down a path to its eventual demise, Celsius thrived and is
> now a fast-growing national brand.
> www.bevnet.com/live/wi.../
>
>
> I thought it would help others get the bigger picture about Celsius.

Oct 13 07:20 AM

[ScottinAtlanta:]

Hi VFC,

I like what I read about Celsius...Reviewed their website and commercials...next step was for me to try the product. From their website I found that the only place close to me that I can purchase was Kroger. So I went to my local Kroger (very large national supermarket) here in Atlanta and found the shelves stocked full of 4 flavors of Celsius. Everything looked great until I saw the sign/price....The Clearance sign ("Clear Out Price "was up ($4.19 per 4 pack)...meaning they will no longer be carrying the product. That not a good sign for this stock ... if you have any connections at the company I would ask them about this. Nothing like hands on research about a stock! Just thought you should know this. Thanks for all your other stock recommendations..

Scott in Atlanta

Oct 13 02:17 PM

[mlongj:]

ScottinAtlanta

This would concern me except for the major advertising campaign that is on right now! The supplies in stores right now are approaching the expiration date and have to move at a discount. This happens for all food items in establishments that sell parishable items. Sometimes its the meat, milk, eggs etc. So, I would not read too much into this going forward. Steve Haley will get the distribution and advertising on the same page soon, but as he stated in his interview a few days ago, the distribution had to come first...then marketing. The only people that know about the product in my area are the ones I tell about it. I have not met anyone that even knows it exists. Of course, this is in the process of changing. And check this coverage that was just initiated today.

9:04AM Celsius Holdings initiated with a Buy at Ladenburg; tgt $0.90 (CSUH) 0.45 : Ladenburg initiates CSUH with a Buy and sets a tgt of $0.90. The firm expects CSUH to experience significant revenue growth as it benefits from its product positioning, retail expansion, recent distribution and marketing deals, new product launches, and greater consumer awareness from television advertising. While the gross margin should improve due to greater scale economies, the firm believes that selling and marketing expenses should increase significantly to support advertising plans and sponsorship deals. Despite recent financing to support marketing the firm believes that the company will require additional funds to sustain its growth. Although speculative, the firm believes that an investment in CSUH may be rewarding if the company effectively executes its expansion and generates further demand.

I think they are going to be great and I would also anticipate much of the product in certain markets has been sitting for a while. This will change going forward in my humble opinion.

thanks for the research!


On Oct 13 02:17 PM ScottinAtlanta wrote:

> Hi VFC,
>
> I like what I read about Celsius...Reviewed their website and commercials...next
> step was for me to try the product. From their website I found that
> the only place close to me that I can purchase was Kroger. So I went
> to my local Kroger (very large national supermarket) here in Atlanta
> and found the shelves stocked full of 4 flavors of Celsius. Everything
> looked great until I saw the sign/price....The Clearance sign ("Clear
> Out Price "was up ($4.19 per 4 pack)...meaning they will no longer
> be carrying the product. That not a good sign for this stock ...
> if you have any connections at the company I would ask them about
> this. Nothing like hands on research about a stock! Just thought
> you should know this. Thanks for all your other stock recommendations..
>
>
> Scott in Atlanta

Oct 13 06:11 PM

[ScottinAtlanta:]

Hi mlongj,

Thanks for the response. I actually bought some Celsius yesterday and tried it. I drank 1 can (cola flavor) and actually felt real good afterwards. No side effects at all. I've tried other products that made me sick (i.e. 5 hour energy drink). This one really seemed to work as advertised! Let's hope other folks try it and get the word out.

ScottinAtlanta

Oct 14 09:41 AM

[mlongj:]

Scott in Atlanta

I completely agree! The product does have an effect after consuming. I can actually feel the metabolism increase. I love the product and feel this is a once in a lifetime opportunity. In regards to your previous comment about the "clearance" price, I have noticed a similar situation in a GNC store I recently visited. The clerk explained that it was due to shelf life and not that they were discontinuing the product. In the interview, CEO Haley, explained that it is important to improve the placement of Celsius on the shelves, but also mentioned that you have to get on the shelves first. He realizes that this causes the product to sit longer on the shelves than it should be, but these instances are being examined and addressed.

I can see this product being a wonderful supplement for weight loss. As you state, "seemed to work as advertised" is what needs to become the thought consumers have when choosing a drink to go with workouts, weightloss, office jobs etc. Regardless of the activity, the product works to burn calories, build muscle and burn fat. It is revolutionary and supported by the scientific community!

Heed the advice of VCF on this one. In a couple of quarters, it is going to be mainstream!

Long CSUH


On Oct 14 09:41 AM ScottinAtlanta wrote:

> Hi mlongj,
>
> Thanks for the response. I actually bought some Celsius yesterday
> and tried it. I drank 1 can (cola flavor) and actually felt real
> good afterwards. No side effects at all. I've tried other products
> that made me sick (i.e. 5 hour energy drink). This one really seemed
> to work as advertised! Let's hope other folks try it and get the
> word out.
>
> ScottinAtlanta

Oct 14 06:24 PM