"Now do I think CELH's current P/S ratio a bit ahead of itself? Yes. Without strong hands holding, I doubt the share price would be where it's at today. But it can ultimately justify it's lofty valuation if it keeps growing (rapidly). "
I think we're actually on the same page about the current valuation, where we diverge is in how likely that valuation is to rise in the near and long term. And for the record, I too have no position (short or long) in CELH.
I wasn't aware of LTEA, but it's an interesting comparison because of its very high P/S ratio. I notice it moved to the Nasdaq only a couple of weeks ago and has lost about 25% since. It's reminiscent of when CELH moved from the OTC to Nasdaq a number of years ago and saw a dramatic fall in the PPS.
Reeds is another interesting example of a company that grew strongly for a while, but has recently reversed, and is paying the price.
CELH has been very fortunate to have CDS fund them through their long incubation period and the investment last year from Simmons, et. al. But I still question how much longer investors (albeit a fairly thinly traded stock) will accept revenue growth with no sign of profitability on the horizon. I also don't have the faith that you do in an acquisition.
Great analysis BTW.
News 
Market Data 
Discover 
