Celsius Holdings Shares Hard to Resist at $3

Mar. 8.10 | About: Celsius Holdings, (CELH)

The CEO of Celsius Holdings, Steve Haley, hosted a conference call last Thursday in which he provided investors with an update on business operations and some guidance for the future.

The company announced impressive fourth quarter revenue growth weeks ago, so this call was primarily an opportunity to inform investors what's in store for the short to mid term future of the company.

Most significantly, in my opinion, is the distribution growth referenced by Mr. Haley that is taking place - or due to take place - during first and second quarters of 2010.

After a trial run in select Costco locations, a roll-out of the product into all Costco stores is underway as is a move into Sam's Club.

Haley also announced a move into Publix in the southeastern portion of the United States, as well as a move into the military outlet via AAFES - a potentially lucrative move as the Army and Air Force Exchange Service has approved both the beverage and on-the-go powdered products.

Celsius is still a growing company, and the distribution announced on Thursday is huge, in my opinion, and signals that the significant revenue growth realized in the fourth quarter of 2009 could continue deep into 2010.

As for the short term price movement of the stock, I still believe that the low-volumed CELH stock will trade exactly how Pentwater Capital wants it to trade for the time being, but as the stock moves towards three bucks it's awfully tough to resist adding a few more shares.

Of note, the Celsius 'get bash' crew has been working overtime the past week, so it's obvious that these guys still want the stock to trade lower, in my opinion.

I like what I'm seeing with Celsius - the increase in advertising expenses is also being used to increase the distribution network and awareness is consequently growing at a time when the general population is trending towards healthier food alternatives.

It's also worth noting that New York politicians are still pushing forward with a tax on sugary beverages, a move that could help Celsius in that state.

Disclosure: VFC is long CELH.