Celsius Holdings Inc (CELH)

[NewJerichoMan]

The market is not coming to CELH, they are simply buying the market they have in an unsustainable way.

They aren't giving product away for free. You've seen the gross profit margin. They are spending on advertising, brand influencers, etc. That can go away if they want to focus on profitability. Big difference versus giving retailers 15 cases for the price of 10. Their path to distribution is narrow and deep, not shallow and wide.

The brands you mention were and are indeed run for a profit. They did not spend 10 years blowing thru 60MM in cash to remain profitless enterprises. They experienced largely sustainable operations and organic growth. Those bought out were valued at 2x sales, not 10x.

Bai wasn't profitable, and it was bought for 4x future sales (public statements), a mark it didn't hit. I'm sure DPS was less than thrilled that ABI was on the other side of the table bidding but what were they to do?

I'm not sure Talking Rain is profitable even now. Thin margins, a problem $CELH doesn't have. It's probably why they can't sell their-selves after numerous attempts.

Speaking of huge gross margins, you've seen $FIZZ's P/S ratio, no? Yes, they are profitable but about 40% of that company is tied to legacy brands like Shasta (non-water program), FayGo, et. al.

Lots of dynamic changes have occurred in the beverage industry in recent years. Cola converters have made a lot of new millionaires. It's a valid opinion if you don't think $CELH will be among that group but to deny the market changes are occurring is pure silliness.