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NewJerichoMan

01/14/17 3:04 PM

#5703 RE: Toxic Avenger #5702

...companies have a lot of latitude as to how they assign CGS when it comes to slotting fees and co-op marketing costs...



CELH is explicit how they recognize gross and net revenues.




The trend is critical.



This I agree with 100%.


If CELH continues to post large losses with a few breakeven/low profit quarters interspersed, they will end up like JSDA and other small consumer products companies, which is to say, a P/S ratio of 1/3 that of CELH



If the growth trend remains unbroken, the gross margins should remain in tact as well, if not improve. It's one of the benefits of scale.