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Many of whom are family, very close friends, business acquaintances, and long-time supporters of Carl. Many of these people invested in Celsius based solely on Carl's name and reputation. I doubt that he would sacrifice all of those relationships, along with his moral character, for a few extra dollars.
If he sells it, he gets 100% of the sales price. If he sells now, he splits the sales price with the other shareholders.
Kezzek, Carl pushed all of that debt out to September of 2014 to give his new management team enough time to execute on the new strategic business plan. That's more than 2 years from now; plenty of time to reach profitability. You must have somehow missed that very important piece of information in your due diligence and analysis. Here, I'll be very glad to provide it for you.
http://www.celsius.com//sites/default/files/imce/pdf/Q3Earnings.pdf
When the CDS loan was created, it was due this month and secured by all the assets of the company, which suggests that CDS could take over whenever they wanted. Even if they extend the loan term, the overhang remains as they owe $5 million to CDS.
That's good information for investors to know. Thanks!
The SEC provides some excellent guidance on buying micro cap stocks like CELH and what to watch out for.
www.sec.gov/investor/pubs/microcapstock.htm
I'm glad to hear that. GLTY.
Indeed I do ENCOURAGE investors to make their own decisions. I simply provide solid information to help them do so, unencumbered by the need to profit from deceiving them.
Frankly, I find it odd that you feel a need to protect investors from themselves. Sounds more like a government position to me. Perhaps you should consider letting investors make their own decisions; good or bad. Big brother is already attempting to enact laws which take away individual freedom of choice and the personal responsibilty that comes with it. I sure hope that you are not advocating that we need this kind of Nanny-State when it comes to investing.
My point is to ensure investors go in with their eyes open and aren't taken in by those with a vested interest in getting their money.
I like this chart better. It shows steady accumulation by investors who can see beyond the past.
http://stockcharts.com/h-sc/ui?s=CELH&p=D&yr=1&mn=0&dy=0&id=p01347150411
Kezzek, what's your point of offering a backward looking chart, and dredging up the past failures of the previous management team? Many of us are focused on the progress made over the past four quarters by a newly-energized management team with an exciting strategic vision and innovative marketing plan, which has resulted in stable to increasing revenues, and declining quarterly losses. To me, it looks like a desperation move to take the focus off all the positives happening here.
By the same token, I think that I'll stick with a nationally known sports and nutrition doctor and his methodolgy for conducting statistically meaningful clinical studies, which have been validated by the National Advertising Division of The Better Business Bureau, over some abstract link on the Internet.
I'll tell you what. Maybe you could give Dr. Stout a call and get back to me with what you have been able to find out about the way he conducted the Celsius clinical studies?
Dr. Jeff Stout’s Metabolic & Body Composition Lab’s Research Study gets National Attention.
The 10-week study conducted in the Metabolic & Body Composition Lab compared participants who exercised moderately five days a week: one group drank one, single 12 oz serving of Celsius prior to moderate exercise and once daily on weekends, and the other group did moderate exercise only without drinking Celsius. The study was presented at the American College of Nutrition, was published in the Journal of Strength and Conditioning Research and was featured on several national news segments including the following segment featured on a local San Diego network:
http://www.sandiego6.com/
content/sdl/content/detail/Working-Out-Smarter/Oa50z__lC0iAdX0GQ5Zopg.cspx
http://cas.ou.edu/Websites/oucas/images/HES/Newsletter/April_2010.pdf
It doesn't matter. Either way it shows that Celsius' functional claims were verified and passed the rigorous standards for inclusion in the company advertising for the product.
Even more proof it was a marketing study, not a rigorous clinical trial. Did you check out sample size calculations?
A very good observation Whispering Bomb. Thanks for clarifying that extremely important point for the average reader.
Really? Not according to the National Advertising Division of The Better Business Bureau. They took a very close look at the Celsius clinical studies and found them to be statistically significant. I think that I will err on the side of placing my confidence in a well-known and respected agency that deals with commercial claims everyday, as opposed to information posted on a stock message board, which lacks both the verifiable credentials and qualifications to make such an important judgement about a product.
"The National Advertising Division of the Council of Better Business Bureaus has determined that Celsius, Inc., Boca Raton, FL, provided adequate substantiation to support certain advertising claims"
"In making its determinations, NAD considered the evidence submitted by Celsius, which including six separate studies—three on subjects who used the product without exercise and three on subjects who used the product in conjunction with an exercise program."
"NAD found the advertiser could support claims that referenced the taste of Celsius and the product’s ingredients, as well as claims that Celsius supplementation results in “increased metabolism,” “calorie burning,” “fat loss,” “decrease in body fat,” “greater endurance performance” and “greater resistance to fatigue (increased energy).”
http://www.nutraceuticalsworld.com/contents/view_breaking-news/2010-10-01/certain-weight-loss-claims-upheld-in-nad-review/
Meaningless.
I have read the studies. What I see is that there are far more than the 10 participants which you purport to be the size of the study group.
Where in the data do you see as little as 10 people in a group? At least two of the studies involved a group sample of 60 individuals, with no less than 20 in one of the studies. If we are going to have an intelligent discussion, can we at least agree to be accurate when presenting facts?
http://www.celsius.com/sites/default/files/imce/Celsius%20Clinical%20Study%20-%20All%20Studies.pdf
Any study involving about 10 people in each group is going to fall far short of a true scientific evaluation.
Kezzek, I don't see where wippersnapper has said that he believes CELH is overvalued at 0.40 cents? Could you please point me to his statement indicating that viewpoint?
But at least we seem to agree it's overvalued at 40 cents.
It doesn't appear that the experts in the health and fitness industry agree with your assessment.
http://www.celsius.com/thehotspot/tags/2012-supplement-guide
Celsius's studies were pathetic that's a fact and it takes knowledge of the methodology involved to make such a statement which I happen to have
I'm sorry, but calling your opinion a "fact" does not not make it true. Please confine the facts to what can be objectively proven and supported. Subjective opinions are not factual.
The fact remains: Celsius's studies were not only terribly weak,
but the particulars have been previously posted on this board in detail
The new strategic marketing plan and sales strategy will likely provide the company with a better opportunity to highlight the clinical studies in their marketing message.
Have they not done a good enough job to leverage these or does the buying public not care?
I doubt undergraduate quality studies would get published in some of the nation's most reputable and respected science journals.
"About the studies:
Celsius is committed to science and the above studies were conducted by independent laboratories that represent the country’s leading authorities on exercise science. They are part of ongoing research funded by Celsius to ensure the efficacy of our products. These studies pass the standard for independence in that they were reviewed by experts at scientific conferences and published in science journals."
http://www.celsius.com/science
well the problem is the clinical studies were incredibly weak I went into the specifics of that ad nauseum at the time they were presented they were poor studies at best undergrad quality at best
If that were true, then why don't they? It's because you cannot apply the functionality of just one ingredient to a product which contains many ingredients. That's why the Celsius studies were done on the entire MetaPlus formula. This more accurately reflects the functionailty of the MetaPlus formula, not just a single ingredient found within the formula.
"LOL, every drink with caffeine can make the same claims."
Celsius is not currently selling their powder in any big box stores, so I'm not sure that is a fair statement to make at this point.
I don't think so all one has to do is look at the shelves at the big box stores to see that isn't true
Kezzek, that is a very innaccurate statement. For more detailed information, please follow this link regarding the Celsius studies.
http://www.celsius.com/science
"This research study, conducted with the Ohio Research Group of Exercise and Sports Nutrition, was a placebo-controlled, double-blind, cross study to compare the short term effects on metabolic rate of Celsius compared to a commercially available diet soda."
The studies were not double blind at all.
Celsius has scientific validation as it relates to functionality claims, and is marketing to a "consumer niche" where those other companies don't have a real presence. As a result, I don't consider them competition in the true sense of the word. You just can't compare AMP, Monster, Full Throttle and Red Bull to Celsius in terms of the consumer demographic that each brand is attempting to appeal to. Unfortunately, many companies are now discovering just how important functionality claims are becoming among consumers. Many are scrambling to develop their own studies in order to validate what they are telling consumers. It's also interesting to note that the kind of "niche marketing" Celsius has engaged in has rapidly become the fastest growing segment of the beverage marketplace.
http://www.bevnet.com/magazine/issue/2012/more-is-more
Those are all competitors to Celsius that lack the one thing that Celsius has which they don't ---- scientifically backed claims as a result of six clinical studies conducted over the past 5 years. If you are going to make a functional claim, you had better be able to back it up.
http://www.bevnet.com/news/2009/2-27-2009-enviga
http://www.nutraceuticalsworld.com/contents/view_breaking-news/2010-10-01/certain-weight-loss-claims-upheld-in-nad-review/
It seems like innovation and consumer demand are driving more functional beverage companies to embrace powder formulas.
http://www.bevnet.com/magazine/issue/2012/functional-mix
It looks to me like the new CELH management team is very forward looking and understands the trends that are beginning to take shape.
"except now it's powder"
Whispering Bomb, you might want to start here:
http://www.celsius.com/node/28
Good Luck!
Whispering Bomb, welcome to the board. It's refreshing to have a fresh voice with an open mind contributing new insights. Thanks for your posts. Keep 'em coming.
The CEO also made something very clear in the company's press release of May 7, 2012:
"Celsius is positioned for a breakout year in 2012," stated Gerry David, President and CEO of Celsius. "The implementation of new core software systems, key marketing partnerships and introduction of new exciting products provide a strong basis to grow the business in 2012." David continued, "Our international business continued to grow, exceeding expectation by 245%. The Company's focus moving into second quarter will be the implementation of many of our direct to consumer initiatives and the continued effort in reducing product cost."
http://finance.yahoo.com/news/celsius-holdings-reports-first-quarter-110000138.html
I'm not sure that I understand what your point is. Could you please explain?
The next time you speak with John Fieldly, ask him if anybody has paid them a visit recently to discuss company matters.
My interpretation of that announcement is that Smoothie King will be offering the addition of the MetaPlus formula to customer's smoothie drinks. If you've ever been to a Smoothie King, you have various options (at an additional cost) which you may add to your order. They are called "enhancers".
http://www.smoothieking.com/menu/enhancers.php
This looks like another move to higher margin sales.
http://www.celsius.com/thehotspot/blog/you-may-soon-find-calorie-burning-drink-your-local-smoothie-king
Smoothie King has over 600 locations worldwide.
http://www.smoothieking.com/stores/all-stores.php
ALL FROM THE COMPANY SEC FILINGS:
"Our DTR marketing strategy focuses on sales made directly or with the assistance of brokers to national and regional supermarkets, convenience stores, drug stores, nutrition stores, mass merchants and club warehouses. As of the date of this annual report, we have DTR relationships with and are rolling out Celsius® products into Vitamin Shoppe, GNC, Supervalu, Duane Reade, Albertsons, Rite-Aid and 7-11 stores, among others".
"Our DTR customers into whose stores we are rolling out our products include Vitamin Shoppe, GNC, Supervalu, Duane Reade, Albertsons, Rite-Aid and 7-Eleven. We made a test shipment in December 2009 to 285 Costco stores, and if successful, we plan to make a full launch into all 404 of their stores in the United States and Puerto Rico in March 2010".
"In March, 2008, the Company issued a total of 750,000 shares as compensation to an international distributor at a fair value of $120,000. The same agreement can give the distributor 750,000 additional shares if certain sales targets are met, or if the stock price of the Company is 45 cents or greater for a period of 5 trading days, whichever occurs first".
"Celsius is also being sold internationally and we will group those sales in two large groups, export (an importer buys the product and resells it) and license (a bottler will license the rights to produce locally and then they will sell and distribute in their respective countries.) In the immediate future we are focused on the US market, however, we will continue to respond to international interest and inquiries".
"During 2007, the company received $400,000 from an international customer as deposit on future orders. The orders will necessitate special production of the packaging materials, and certain other product development is necessary. The Company does not have a specific purchase order on hand, and is currently waiting for the final graphic design for the special packaging".
"We received during 2007 a total of $400,000 as deposits against future orders from an international customer. We received a purchase order from the customer, and shipped products in April and June offsetting the deposit".
Before you send the SEC on a wild goose chase you may want to remember that while Celsius did have selling agreements with both Walgreens and Rite-Aid at one point in time, (and Celsius products were being sold in many of their store outlets), Carl made a dramatic shift in the strategic direction of the company, in December of 2010, to reduce operating expenses and conserve as much cash as possible. The decision was made to discontinue selling the brand in the drug channels because of the high cost of shelf space through the payment of slotting fees. I would not expect you to find Celsius products in either Walgreen's or Rite-Aid at this point in time. I hope this helps to clarify the sitaution.
http://www.sec.gov/Archives/edgar/data/1341766/000121390010005096/f8k120210ex99i_celsius.htm
He is most likely referring to the press release outlining the financial results for the quarter ending June 30, 2012. Celsius usually releases their results around six weeks after the quarter's end. That would be around the week of August 12th.
BTW, Thanks to whoever got my previous post reinstated. I know that it's hard for some people on this board to hear the truth, but I am not going to sit idly by and let people cast dispersions and impugn the company's integrity without a single shred of evidence to support their claims.
With all due respect, there doesn't seem to be much of anything that you are impressed with when it comes to Celsius. Even calling a marketing strategy a "stunt" expresses your disdain for this company. Why don't you give the new management team a chance to show you what they can do? Can you at least give them credit for stabilizing revenues and cutting the quarterly losses to a more managable level?
"exactly, which is why I wasn't impressed with this latest Celsius stunt"
What "powder crap in a can" are you referring to? You seem to be under the impression that they have replaced all of the RTD products with the powder formula. The powder is targeted to a specific market for a specific marketing strategy. The cans still account for the majority of the company's revenues, and, most likely, always will. Line extensions are a normal part of expanding, and I would expect to see new products as part of a comprehensive growth strategy.
It is highly unlikely that Carl would dilute his own interest in this company to any large degree. Even more unlikely is that any shares Tony Little may have been given are free-trading shares. It would make more sense that they would be restricted shares. And, oh, just for the record, Mario Lopez never received any Celsius shares outright. He was given some cash and a warrant to purchase one million shares at an exercise price of 0.45 ($9.00 adjusted for the reverse split in December of 2009).
http://www.sec.gov/Archives/edgar/data/1341766/000121390009003069/f8k090809_celsius.htm
"On November 9, 2009, the Company issued a warrant to purchase 1 million shares at 45 cents per share to Pez-Mar, Inc. in exchange for services rendered by Pez-Mar, Inc. The warrant is immediately exercisable and expires on November 5, 2012."
He seems to be very successful at selling fitness-related products.
"Tony Is Seen In 81 Countries"
"Over 40 Million People Have Bought His Products!"
"In The Fitness & Wellness Business For Over 2 Decades"
http://tonylittle.com/
"Little’s infomercials have generated more than $4 billion in sales globally. Little averages about 6,000 hours a year on TV."
http://en.wikipedia.org/wiki/Tony_Little
It's called "beating a dead horse". Some people are very good at it.