InvestorsHub Logo
Followers 57
Posts 11144
Boards Moderated 2
Alias Born 04/25/2012

Re: tomtotom post# 6675

Monday, 03/05/2018 7:35:51 PM

Monday, March 05, 2018 7:35:51 PM

Post# of 8799

Net Loss is highly correlate to sales.



Grammar aside champ, you are correct about this but I don't think you understand why. Those losses aren't random. They aren't magically losing low ten digits (percentage-wise), year-over-year, on accident. It's by design. They are spending for rapid revenue growth because they have the capital backing and cushion to do so.

If the goal was profits, then the revenue growth rate would suffer; but as publicly stated by the company, on numerous occasions, the main goal is revenue growth.

As far as why now? Have you looked around the beverage industry? People aren't just talking healthy, they're spending healthy. Since 2009, the list of brands that have seen rapid growth are not insignificant. A few of the notables are Bai, Sparkling Ice, La Croix, KeVita, etc. 2 of those brands were start-ups. Two were long-time brands where the market came to them. Celsius fits in that latter category, a science-backed product that helps in weight loss. Think that might catch on in a nation full of fatties?

If you don't think the products and/or brands are winners, then c'est la vie. But the business paradigm is tried-and-true within the beverage industry, grow as fast as you can, and hope to get taken out.

$14M for Q4!?! From your mouth to God's ears.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent CELH News