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Re: Altitrade Partners post# 4883

Thursday, 02/18/2016 5:56:55 PM

Thursday, February 18, 2016 5:56:55 PM

Post# of 8828
I'm afraid a story, unsupported by results, is simply hype.
When we see CELH with a pattern of sustained profitability on increasing revenues, I'll be a buyer (well, as long as the valuation is below today's).

I'd recommend you look at Jones Soda, one of the "storied" stocks from the past. Still around, doing OK, but down 98% or so from its high in the "story" days. It's very similar to CELH, with about 4x the revenues. Like CELH they've had good gross margins and revenue growth (at least in the past), however they have never been able to reach sustained profitability. They've had great stories (unique niche, buyout coming, first in a trend), but none of that translated to profits.

Consumer products are a tough category with all the big players who can duplicate any product at the bat of an eye and spend lavishly to promote that product.

“No one in this world, so far as I know — and I have searched the records for years, and employed agents to help me — has ever lost money by underestimating the intelligence of the great masses of the plain people"
H.L. Mencken

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