Celsius Holdings Inc (CELH)

[Toxic Avenger]

We're both wrong I guess. Up in Q2, down in Q3.

Don't focus too much on gross margin as companies have a lot of latitude as to how they assign CGS when it comes to slotting fees and co-op marketing costs. The more significant is net income, which of course for CELH has been million dollar losses for 3 of the last 4 quarters, with break even last quarter.

The trend is critical. If CELH continues to post large losses with a few breakeven/low profit quarters interspersed, they will end up like JSDA and other small consumer products companies, which is to say, a P/S ratio of 1/3 that of CELH.