Monday, March 7, 2011

CELH: Volume, Price Up in Anticipation of Earnings?

From VFC's News, Notes & Weekly Stock Watch at VFC's NEW Stock House.

CELH:  Ninety thousand shares plus of Celsius Holdings traded on Friday, accompanied by a five percent increase in share price.

This action is not unfamiliar for CELH before upcoming earnings reports, and fourth quarter 2010 earnings due by the end of the month.

Over the past year, however, the modest pre-earnings price gains have been negated - and thensome - following substandard reports; substandard in terms of revenue, to be clear.

While it should also be considered a healthy alternative to many sugar-laden soft drinks and energy products on the market, Celsius is now being pushed mainly as a pre-workout beverage.

The large disparity in predicted sales versus actual sales in 2010 fueled a 'bear raid' on this stock, but any evidence that the product is gaining traction - not losing it - could send shares back above the one dollar mark in short time.

That's a risky proposition, as CELH is as speculative now as it's been for some time, but on the other hand the risk reward is as good as it's been in a while.

Another earnings miss will result in some more havoc being played with the CELH stock, but anything close to a respectable quarter could lead to surprising returns.

Considering that the forty cent price has already provided significant returns for investors who either re-loaded or bought in at prices in the mid twenties, CELH has quickly become a stock to watch, once again.

A positive earnings reports and a little good news here and there could draw in enough attention to spur some decent price movements.

Disclosure:  Long CELH.

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