Celsius Holdings Inc (CELH)

[NewJerichoMan]

IMO, big companies want companies that can scale. They want potential billion dollar products. A small but hyper-profitable niche product that could never scale is irrelevant to big companies because of their massive size.

The expense structure at CELH is irrelevant. The big companies can do everything small companies can, at half the price - the whole economies of scale thing. Plus, by virtue of being big, they have mature distribution networks, client bases, marketing teams, etc. into which to plug new products.

This is why P/S ratio (versus P/E ratio) is the superior metric for valuing beverage companies.

If you're expecting profits anytime soon, I think you're going to be disappointed with this company.