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And you base your opinion on what? A wild guess? There has been no communication from the company since the last quarterly report, so I'm curious to know how you arrive at your conclusion?
imo, the move to the powder isn't working
There's no doubt in my mind that Carl DeSantis will turn this company around and make it profitable. Now, I can't offer any guarantees, like Kezzek, but knowing Carl, I'd say that its a good bet that he gets this done for himself and shareholders.
Carl DeSantis has perfected the art of turning adversity into advantage, with dazzling results, since he was four years old.
"Losers have decided they're going to lose," DeSantis said from his office in Boca Raton, where he is founder and chief executive of Rexall Sundown Inc., a giant vitamin corporation. "There's nothing I don't think I can do."
DeSantis wants his role in the center to be more than his name on a building. He hopes the potential executives who train there will learn his background and think the name DeSantis represents a way to turn setbacks into success.
Melvin Stith, FSU's business dean, said entrepreneurs like DeSantis thrive on challenge.
http://www.fsu.edu/~fstime/FS-Times/Volume3/ap98web/10ap98.html
I couldn't agree with you more. Being philanthropic with money to a bunch of strangers is one thing. Making sure that your friends, (who have invested their hard-earned money in Celsius, based on your name and reputation) achieve success, is an entirely different situation, and likely much more important to Carl.
LOL, philanthropic with money is one thing. Running a company and putting money into it and then turning part of that money over to other shareholders, is entirely different.
I disagree. It shows Carl's intention. Heck, even the ex-CEO and co-founder, Steve Haley, who Carl removed from office, could not question Carl's motives and intentions, as anything but good.
"His heart and his pocketbook are in the right place, and he’s showing it.”
http://www.bevnet.com/news/2011/changes-roiling-functional-beverage-category
He holds so much debt and equity now, converting at $10.20 was meaningless.
Really? That's funny, because Carl has always been passionate about his philanthropic pursuits.
Carl DeSantis, a successful businessman and well known philanthropist, embarked on his first visit to Africa at the instigation of his partner Erika Stewart, who had visited the continent every year for a decade.
http://www.kwandwe.com/team_member/erika-stewart-carl-desantis/
Carl DeSantis gives $2 million to the College of Business to establish the DeSantis Center, which focuses on preparing students to enter the business side of the motion picture/entertainment industry. State matching funds increase the gift to $4 million.
http://www.fau.edu/explore/1990-1999.php
It's quite obvious that you do not know Carl DeSantis.
Carl is not a philanthropist. He's a business man.
If you look at Level II quotes, there aren't many shares left in the 0.35 - 0.40 cent range. Once those shares get taken it looks like a clear shot up to between 0.60 - 0.75. That's when things should really get interesting.
Wippersnapper, in order to understand what is going to happen with this company, one has to understand both the thinking and motivation of Carl DeSantis. Carl has had ample opportunity to take this company private and fleece shareholders. He's chosen not to, which suggests to me he doesn't intend to. Otherwise, as you point out, why would he extend the terms of the debt to September of 2014? Kezzek keeps harping on the fact that Celsius is a non-reporting pinkie. Yet they report quarterly financials every three months like any other public company. If Carl was planning to screw shareholders he would just simply leave them in the dark, with no information at all. There has also been discussion of Carl not being charitable towards other shareholders. The facts point to the exact opposite. Actions do speak louder than words. Case in point: "On March 10, 2010, CDS converted $4.5 million of the convertible note into common stock at the fixed exercise price of $10.20 per share. The outstanding balance under the loan agreement as of March 31, 2011 was $2.0 million." One simply has to go back and look at what the price of CELH stock was on the conversion date of 3/10/2010. It was approximately $3.00 a share. Now that begs the question, why would Carl DeSantis convert debt to equity at over 3X the market price, and give shareholders a $3.25 million gift? Could it be that Carl wants the company to succeed so badly, that he is even willing to take a personal haircut to see his friends make money? Like I said in an earlier post, there are "personal dynamics" at work here which some people have not taken into consideration.
Another late in the day attempt to paint the tape lower failed. I doubt that it is tax loss selling at this time of the year. Why sell now? It is always for a very small amount. Usually between 100-200 shares. That's less than $100.00. Hardly worth much to anyone in terms of a tax loss. It always seems to occur very close to the end of the day to bring the stock into the red on the chart. Somebody is trying to keep this down. Who knows, it might even be someone reading this message board.
There was a bid for 10,000 shares at a price of 0.32 for almost four hours earlier today. If somebody wanted to sell they could have done so in size during that time. That begs the question who would sell such a paltry amount of shares with total dollar volume equal to $46.53? It's a headfake, Kezzek. Manipulation, plain and simple.
It's really hilarious to watch the Market Makers attempt to paint the tape lower on this stock. Yesterday it traded up all day until a lousy couple of hundred shares came in one minute before the close to create a down day. Today, 165 shares were thrown out there to bait people into selling, and try to create another negative day for CELH. Fortunately, nobody took the bait.
http://ih.advfn.com/p.php?pid=trades&symbol=CELH
What catalyst do you see to make this stock "pop", now that the quarterly results are out of the way?
not much paint today - some decent trading actually. just waiting for CELH to pop...
Could you please provide a summary of your conversation?
I never saw your post. What happened?
I got in touch with the CFO today, so hopefully I'll have some good info to post soon!
Good point. Most pink sheet stocks have hundreds of millions, if not billions, of shares outstanding. Celsius only has about 20 million shares outstanding, with 52% of that owned by Carl. That doesn't leave much public float available for trading.
Also, I mentioned it earlier, but has anyone seen share structure like CELH before, ESPECIALLY in pinkland? I mean, this could really explode if the word gets out...
You're right. Carl has too much integrity to engage in a paid promotional campaign. As to the over-debated point about being a non-reporting company? It has nothing to do with not wanting to be transparent. If that were the case they wouldn't issue any quarterly financial reports, or press releases, at all. There is a certain competitive advantage to being stealth and not having to disclose evrything that you are doing, and who you are working with. To be quite honest with you, I was very surprised that they even decided to make the relationship with Ronn Torossian and his PR firm known publicly. I would have guessed that information would have stayed out of the public domain, or at least not been announced through a formal statement over the business wires. I'm guessing that this may be the first indication that they will refile as a fully-reporting company eventually.
That could change in a heartbeat. The problem is that nobody even knows about Celsius. The old shareholder base is long gone and there aren't many new players coming in to bid the stock higher. That will change when two things happen; 1.) The company shows improved financial results; maybe even a profit, and 2.) the new PR Firm gets the product seen with the right people by the right people. Kezzek, you've been around long enough to know that once this stock get posted on the breakout boards and the momentum players get involved, we'll easily be north of $1.00. The penny stock crowd could care less about much of what we have been debating on this board. They're going to pile in if they think that there is money to be made.
The good news is that for those who really do see Celsius turning around, there appears to be plenty of shares at 40 cents.
Their recent history over the past 4 quarters (FY 2011) has been much better than the prior year (FY2010). They've reduced their expenses, stabilized revenues, and cut their operating losses substantially. This was prior to the new CEO coming on board. I'm sure Carl expects even better than that, and will hold Gerry David's feet to the fire. I say let's give him a chance (FY2012) to see what he can do, before we pass judgement. Fair enough?
"Reporting Period | Revenues | Net Profit (Loss)
Q4 2011 | $1.8 million | ($716,000)
Q3 2011 | $2.5 million | ($278,000)
Q2 2011 | $2.0 million | ($456,000)
Q1 2011 | $2.2 million | ($459,632)
Q4 2010 | $135,000 | ($5,581,748)
Q3 2010 | $1.8 million | ($5,036,886)
Q2 2010 | $4.1 million | ($3,026,284)
Q1 2010 | $2.3 million | ($5,852,484)
Q4 2009 | $2.4 million | ($7,759,029)
General rule of thumb, you are correct. However, there are always exceptions to every rule.
History is littered with pinkies that have never made a profit and lost billions for investors. There aren't many examples of pinkies that have become successful.
History is littered with people who had a vision and were told that they could never accomplish their goal. Thank goodness, they didn't listen to the naysayers, but went on and did it anyway. There are always going to be people who take a cynical or negative view of others and/or their ideas. I'd rather see the glass as half full rather than half empty, but that's just me! I respect the viewpoint of others here, I just don't agree with it.
That is precisely why for Carl this is such a bitter pill to swallow. Believe me when I tell you that Carl is 100% committed to restoring value to the many shareholders who are among his friends and family. The last thing he wants is to be remembered as both a quitter and a loser.
While I enjoy a healthy debate, can we please try to keep the conversation focused on current issues, or at least the ones that have had relevance for the last 12-18 months? These things that you are referring to, in your post, are from 2007/8. As to their current status as an OTC non-filer, my understanding is that they may choose to reinstate their position as a fully-reporting company, at any time, pending meeting certain regulatory requirements.
Good points, Wippersnapper. I'd rather look towards the future than dwell on the past. It kind of reminds me of driving your car while looking in the rear view mirror. You want to keep your eyes forward, unless you want to travel in reverse. There is no question that they have learned from their mistakes, and have a new appreciation for keeping expenses down, while building the brand slowly in targeted, niche markets. I still believe that the international market holds a great deal of potential for them. Sweden is rocking big time, and I'm sure that other countries will be coming on soon, if they have not already. Like you, I too see value here at 0.40 cents.
Valid points, but considering that Carl turned Rexall-Sundown from a small business, run from his bedroom, into a global vitamin and supplement empire, eventually selling it to Royal Numico for $1.8 billion in the year 2000, I wouldn't question his business acumen.
"Royal Numico solidified its newfound position as the world's leading vitamin maker when it paid US$1.8 billion for Boca Raton-based Rexall Sundown. The Rexall Sundown purchase, which added that company's catalog of more than 1,300 products, also gave Royal Numico access to a number of Rexall Sundown's major customers, including the Wal-Mart and Publix retail chains."
http://www.fundinguniverse.com/company-histories/Royal-Numico-NV-Company-History.html
http://www.prnewswire.com/news-releases/royal-numico-to-acquire-rexall-sundown-for-us18-billion-72875007.html
Yes, I remember that too. Investors were going absolutely gaga over the stock. Annual revenues were less than $5 million and the market cap was over $100 million. Fast forward three years to 2012. Annual revenues are $8.5 million and the market cap is around $8 million. Markets always tend to go to extremes, one way or the other.
You're absolutely correct. Buyers were slapping the ask hard on any weakness.
Ratio of buy/sell volume was 2:1 today.
http://ih.advfn.com/p.php?pid=trades&symbol=CELH
Wippersnapper, I think that the implication being made by a few other posters on this board is that Celsius chose not to remain a reporting company so that they fly under the radar of the SEC, and thereby engage in deception, fraud, malfeasance and general "cooking of the books". Yes, we all know how that being an SEC reporting company somehow places you head-and-shoulders above the rest of the corporate world on the OTC Market. BTW, weren't Enron and Madoff Securities SEC reporting companies?
Real People, Real Results!
http://www.celsius.com/success-stories
So does CBS, NBC, ABC, The Food Network, Telemundo and many others.
http://www.celsius.com/television
Is Celsius real? I guess Fox News thinks so.
http://fox6now.com/2012/04/09/healthy-supermarket-beverages/
Some of us believe what management has to say whether it is reported on an SEC form or not. The fact that CELH no longer files SEC reports for quarterly results does not, IMO, make them any less truthful. Management didn't all of a sudden become less honest because they became a non-reporting company. As they say, "you can't legislate morality". Core values and corporate ethics are there, not as a result of some government watchdog, but rather as an integral part of the corporate culture that is developed and built by management. It's all spelled out clearly in this document.
http://celsius.com/sites/default/files/imce/pdf/Celsius%20CODE%20OF%20ETHICAL%20CONDUCT.pdf
Wow, the thought just occured to me that Celsius might become a "real" company "real" soon!
So, according to your logic, if they produce a profit, then they are a "real" company? If that's the case, then there are a lot of "non-real" companies on other listed exchanges. Some of them may even be reporting companies that aren't real.
I'm not sure what in your mind constitutes a "real company", but if they manufacture a "real product" that "real consumers" use and "really like" and can buy it at "real stores" like Costco and Vitamin Shoppe and it provides a "real benefit" to consumers that are backed by "real clinical studies" that allow them to make "real claims" that have been validated by the Better Business Bureau's National Advertising Division and has helped "real people" achieve "real results" and live a healthier lifestyle, than they probably are a "real company". Whether they are an SEC reporting company, or not, has absolutely nothing to do with their being "real".
Thanks, but I already know the answer to that question.
You have to ask yourself, why deregister?
I think that Peter Lynch would take exception to your statement. One of his criteria for investing in any company was actually using and liking their product(s). Given that he ran the very successful Magellan mutual fund while at Fidelity, I would say that his words carry a lot of credibility with investors. Many people still follow this sage advice of investing in those companies whose product they use and like.
Kezzek, I find it interesting that this is the second time that you have posted this information to the board. If you look carefully at the wording of the warning is says: This company may not be making material information publicly available. I would contend that MAY NOT is the operative phrase. In the case of Celsius Holdings, Inc they continue to make material public information available through most, if not all, the business news wire services. The words "may not" in this case are not inclusive, nor conclusive of Celsius' position of providing material public information, and I would refute your contention to the contrary.
There is plenty here for another company to build upon.
http://celsius.com/about/awards
Kezzek, to answer your question, Carl basically owned this company even before he acquired a majority 52% stake. The remaining 48% is in the hands of a concentrated group of Carl's long-time friends and true believers in the brand and the company. These individuals are not looking to sell shares in the open market, and therefore do not need, nor want, liquidity. Why do you think that the bid/ask spread is so wide? Nobody is willing to sell their holdings and the Market Makers cannot find any shares to offer potential buyers. While just a guess on my part, I'd say that the true float in this company is probably less than 5 million shares.
As for leaving shareholders in the dark, why deregister if you want to stay a viable public entity?
I think that Carl has had ample opportunity to take this company private and fleece shareholders. He's chosen not to, which suggests to me he doesn't intend to. Otherwise, why you he extend the terms of the debt to September of 2014? As to your point of Carl selling shares in the open market? Why would he do that if the end-game is to sell the company to a much larger player? The decision to deregister the stock was made for a variety of reasons, not the least of which was to enjoy some of the advantages of being a private company. The company does not have to report quarterly results. They choose to do it voluntarily, anyway. If Carl was planning to screw shareholders he would just simply leave them in the dark, with no information at all.
Kezzek, you are absolutely, 100% correct in your assertion that Carl now owns the majority of the company stock. I estimate somewhere around 10,200,000 shares. He certainly doesn't need the debt as a lever over the company, since his equity accomplishes full control over corporate matters anyway. I'm sure that Carl realizes that if by forgiving the debt he is owed it were to result in a share price increase of just 0.45 cents, that he in essence, has recovered the debt owed through equity appreciation. The company would, in fact, be in a much stronger financial position without any debt. I'm sure Carl realizes that too. Throw in profitability and IMO you've got a $2+ stock on your hands, and Carl is at, or close to, breakeven.