Small Cap Ideas

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>>> Celsius Holdings (CELH) -


https://www.kiplinger.com/investing/stocks/small-cap-stocks/601067/10-splendid-small-cap-growth-stocks-to-buy


Market value: $928.4 million
YTD total return: 177.0%
3-year annualized revenue growth: 48.9%


Morningstar classifies Celsius Holdings (CELH, $13.38) as a "speculative growth" stock, which isn't surprising given that it participates in the ultra-competitive world of beverage sales.

Operating under the Celsius brand, the Florida-based company sells healthy carbonated and non-carbonated energy drinks that contain no sugar, aspartame, high-fructose corn syrup, artificial preservatives, etc. Instead, it focuses on healthy ingredients such as ginger, guarana, green tea and essential vitamins.

When Celsius first launched its products in 2009, it marketed its drinks to the weight-loss crowd and found limited traction. It burned through $15 million in IPO money within a year. Current CEO John Fieldly came on board as CFO in 2012, just as it was headed to bankruptcy.

After its setback, Celsius changed its focus from fat-burning to energy and fitness. Fieldly took over as interim CEO in 2017, then took the role on a permanent basis a year later. CELH has been off to the races since then.

CELH's arguably biggest break came in 2018, when 7-Eleven brought Celsius into all of its U.S. convenience stores. It also doesn't hurt to have large investors such as Kimora Lee Simmons (5.7%), ex-wife of record executive Russell Simmons, and Li Ka Shing, one of Hong Kong's wealthiest persons (13.1%).

Celsius's revenues have more than doubled, to $75.2 million, over the past three years. During the first quarter of 2020, sales rocketed 95% higher to $28.2 million; international revenues were up 186%, while U.S. sales climbed 70%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.8 million more than tripled year-over-year.

If you're going to speculate in small-cap growth stocks, CELH offers the kind of growth you want to be a part of.

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