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Fizzy Drink Maker Delivers Bubbly Earnings, Stock Goes Flat (CELH)

Posted on August 17, 2022

Today’s profit-quenching trade is a play on all those fancy gym beverages, and offers an exciting maximum haul of exactly 3233%.

So without further ado, let’s look at Celsius Holdings (NASDAQ:CELH), maker of ‘functional drinks’ and ‘liquid supplements’ – can nothing these days save us from the pretentiousness…?

Sugar Water

To be more precise.

Anyway, CELH stock jumped better than 100% in just over a month, and that caught our attention.

And it wasn’t because they sold a whole lot more cans of their illustriously named Orangesicle

drink.

It was because of…

Nothing.

That is, the stock delivered better than expected earnings on August 10th, but the gains had already been logged by then.

Fundamentally, the stock today is no more than a big, sticky puddle –

  • P/E is 518.75 (what the…?),
  • There’s no Dividend,
  • Stock trades at 31x its break-up value (P/B is 31.32), and
  • Earnings this year fell by 55.70%.
  • But yes, we did see one better than expected quarter.
  • Also noteworthy: insiders have been cashing in their chips big, with $48 million sold in just the last six months – OF WHICH a robust $44 million was offloaded in just the last 30 days.

Heh, heh, heh… and they thought we were napping.

Now look at the chart –

The Good Lord willing.

Many happy returns!

Matt McAbby

 

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