Kezzek, you were correct in pointing, out on numerous occasions, that the big mistake these guys made in the past was trying to go big with a national marketing strategy too soon. The results were catastrophic; huge marketing expenses, massive quarterly losses and a total loss of investor confidence. How the Celsius Board of Directors allowed the squandering of almost $14 million raised through the secondary offering in 2010, with little, if nothing, to show for it, almost boggles the mind. The word fiduciary duty comes to mind. Fast forward to today; a new management team, a revamped BOD and a more laser-like focus on sales & marketing, and it looks like a much different company. I would think that even you would give them credit for the progress they have made over the past nine months. The balance sheet has improved, costs have been drastically reduced, margins are improving from the abysmal showing in Q4 2010, and they are close to showing a breakeven, if not profitable quarter. They have eliminated those retailers where the product had been slow to gain any traction and where marketing costs were crimping margins (mostly the drug-store chains), and instead have focused on where the product enjoys a strong following, sells through with regularity and doesn't require a lot of capital to advertise and support the brand. That said, there is still much work to be done, but it is clear that the company is in the throes of reinventing itself. It appears that Carl is willing to give Gerry David and his new team a two year window to take the company and the Celsius brand in a different direction. Personally, I think that there are going to be some major changes implemented under the new management regime. Only time will tell if they are successful and can build on improving shareholder value. They should be close to reaching $9-10 million in revenues for FY 2011. While that’s a far cry for the $25 million that was projected by the company in 2010, it’s a good baseline to start building from in 2012.
