Celsius Holdings Inc (CELH)

[Radhiker]

Thanks. I am relatively new here. Been monitoring the SPNG board and decided to see if there was a CSUH one. These are better boards than on Yahoo which is nice.

Sorry for making you repost this. The interesting thing would be to monitor is whether this is more like Vitamin water or more like the Monavie model that a friend of mine is drinking/distributing which gets more commitment of regular usage. It would be interesting to know if we can get data from Amazon if there are customers who are getting regular shipments and how they compare to other drinks in the category.

Looking at HANS which now is at 2.5X sales on 15% qtrly revenue growth (yoy) in a category with a 4% growth rate (http://www.bevspectrum.com/issue/May-June_2009/Energy_Drinks__All_Grown_Up), I would expect CSUH to command a potentially significantly higher multiple in a new, higher growth segment. Of course HANS has profit growth of over 40% so is a different standard at this time. Probably a few people who are coming on board who do not want to miss the next potential HANS or who are looking to park their HANS dollars more productively.

It will be interesting to see if the company will ever get this information of the "stickiness" of the consumer. I have a feeling that the net value of the customer may potentially be the highest of the modern beverage category.

Since this is potentially the market leader in the new negative calorie segment, probably why Desantis came on board, it has an opportunity to drive a higher multiple than Vitamin Water in the long term.

It definitely fits into the Motley Fool Rule Breaker category so it will be interesting to see how this plays out.

Nothing hard right now, but just speculating. I think your valuation models are great and not pumping at all, just looking to see if there is another way to look at this. Part of my current job is on the BD side and developing models.