The product is already entrenched in the NorthEastern portion of the country and a significant push into the heavily populated SouthWest is a logical next step. With fitness and 'looking good' a huge part of the SoCal lifestyle, Celsius has a chance to catch on a big way, in my opinion. Those beach bunnies roller blading down the coastline in skin tight shorts and half tops will only look that much better with a can of everyone's favorite calorie burning beverage in their hand; but of course, that's just my opinion.
In the past, I had visited a few stores in SoCal that were listed on the Celsius website as offering Celsius (namely Albertson's and Gelson's), only to be told that the product was either not stocked had been discontinued. However, that was over a year ago and at that time product distribution was not being supported by a nationwide advertising campaign.
At this time, however, I have high hopes for Celsius in SoCal.
Ralphs will offer - in 258 locations - both Green Tea flavors (Raspberry Acai and Peach Mango) in addition to the 'On the Go' powdered Raspberry flavored packets.
Celsius CEO Steve Haley is keeping to his word regarding the amount of distribution growth that we are seeing, and if his words continue to be proven as correct, there could be quite a few more deals in the works.
I continue to believe that Celsius is in the midst of a huge growth phase - a phase being supported by television, print and radio ads - and the current share price, while a bit over valued when compared with past sales, is going to be looked back upon as a bargain - in my opinion - based on the sales and revenue growth that should result from the boom in both distribution and advertising.
While I won't rule out another dip down into the mid thirty cent range sometime during this quarter, I do consider mini a late year run as a possibility. However, I think that the big move in the CSUH share price will come early next year, in my opinion - barring any unforeseen bad news or setbacks.
I know that some investors are concerned about the possibilities of additional financing. Celsius is still a growing company and that means that financing is always a concern, but the need for financing goes side by side with early stage growth, so additional dilution along the way should come as no surprise. Also, since Carl DeSantis has come on board, the terms of financing for Celsius Holdings have been a lot more favorable than previous agreements. As long as revenues and product awareness are growing, additional financing agreements should just be looked at as an expected bump in the road - in my opinion. The overall potential of the company remains the same.
For the immediate future, investors have Tuesday's earnings release to look forward to.
The best for Celsius, in my opinion, is still yet to come.
Disclosure: VFC is long CSUH.
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