Celsius Holdings Inc (CELH)

[Altitrade Partners]

We would have to disagree on a couple of points.

Sales momentum is slowing. A 20% YOY revenue growth from Q1 2014 to Q1 2015 is well below previous gains recorded.

A sequential increase of just 1.3% quarter to quarter leads us to believe that sales are stalling, or, at best, peaking.

Sales in domestic markets showed negative comparisons in Q1 2015. That's a bad sign.

Given the fact that the average Price-to-Sales ratio in the beverage industry is approximately 4X, Celsius is selling at a huge 250% premium (fully-diluted).

It's very hard to justify that kind of multiple with the growth numbers cited above.

The fact that they just nearly doubled the shares outstanding from 20.5 million to 38.8 million, and did so at a huge discount, only adds to the concerns we have.

BTW, any profit that we projected for 2015, will now have to be spread over those additional shares. Kind of makes the numbers we are looking for more difficult to achieve.

We'll have to wait and see what the Q2 results come in at, but at this point we will probably have to take our internal numbers down (we at currently at $22- $25 million in revenues for FY 2015) unless they can come up with a way to work around the problems on the international front in two of the BRIC markets; China & Brazil.

While it's nice to paint a picture of a high-growth little micro-cap company with tons of future potential, the most recent numbers just don't seem to bear that out.