Celsius Holdings Inc (CELH)

[Toxic Avenger]

Very good analysis. Where I think you run into trouble is ignoring cash flow and to a lesser degree, profitability. When cash flow is negative as it is now, sales are constrained because you need cash to produce, market and distribute the product. It's hard to grow sales at 100% a year in a negative cash flow situation, unless you have some willing and able investors.

Even with growth, if you're looking at a company which is losing cash from operations at about 1X sales (as it did last quarter), then you need constant investment, usually at increasing cost to existing shareholders, or you're faced with even bigger problems.

Lastly, I think even 4X sales may be too high in this environment for a company of this size.

The quarterly financial statements should be very telling for the company when they're released shortly.