Celsius Announces SUPERVALU Distribution and Then Receives a BUY Rating from Thalmann

CSUH: Shares of Celsius Holding returned to the fifty cent mark on Tuesday, trading on double the average volume after two significant items of news hit the wires during the pre-market hours of the morning.

The first announcement informed investors - and consumers - that the Celsius calorie burning beverage would now be available at the Supervalu family of stores, which includes Acme, Albertsons, Cub Foods, Jewel-Osco, Shaw's/Star Market, Shoppers Food & Pharmacy, and Farm Fresh.

According to the press release, four Celsius flavors (Sparkling Orange and Wild Berry and both Green Tea flavors) are now available for purchase in approximately 1,800 of those stores.

This announcement is a good sign that CEO Steve Haley wasn't kidding around in his recent interview when he declared that there were some major distribution announcements in the works.

In my opinion, based on the content of that interview, Tuesday's announcement is the first in a line of additional distribution agreements that will be keeping the printing presses warm for the PR newswires.

In additional news - and pretty significant if you ask me - the Florida-based Ladenburg Thalmann initiated coverage on Celsius Holdings Tuesday with a rating of BUY and a price target of ninety cents.

This recommendation is no joke. It's one thing for VFC to and other investors out there to call a price target of ninety cents, but when an investment bank calls that target - it gets the attention of a lot of people.

The reasons behind the rating and the price target are no different than the reasons posted by myself and other long term shareholders of the company, but there's no doubt that the words coming from Thalmann hold a lot more weight in the investing community. It's also my opinion that this company would not have jumped on board at this moment in time unless they had a peak at preliminary third quarter numbers. I'm not expecting the world from third quarter, but I do expect to see significant growth, especially after seeing the BUY recommendation today.

Advertising and distribution would move the stock without the Thalmann news, in my opinion, but the move to the upside may come a little bit quicker now. Don't be surprised to see some volatility in the stock as new investors come in and others look to take some profits, but those with a mid to long term outlook are probably going to be sitting pretty by the second quarter of next year - or sooner - in my opinion.

Keep in mind, as distribution and advertising grows, so will the amount of money the company needs to spend for the short term. As CEO Haley stated in his most recent interview, the spending is an investment in the future of the company.

Do your DD, but as additional distribution announcements hit the wires, CSUH could be pretty close to leaving the fifty cent mark in the rear view mirror.

Disclosure: VFC is long CSUH.