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CSUH.OB - Screw Redbull, I’m drinking Celsius!

CSUH is an awesome company i came across this evening. Well let me rephrase that, they have an awesome product which i think will turn them into a great company. Celsius is a new alternative energy drink that increases your metabolism on average by 12% for a period of 3 hours+. So while everyone was amazed when the zero calorie energy drinks and sodas came out. Now we have Celsius which will result in negative Calories! Celsius is a healthy alternative to the ever so popular consumed unhealthy high calorie and sugary energy drinks and sodas. Let me tell you why i’m a believer in this product

I found this on a blog about CSUH. Kind of discouraging when you look at the facts. But i mean, if this has similar results just for boosts in energy similar to beverages like rockstar, monster, and redbull which have grown into a huge industry,i myself can’t go a day without one, i probably spend close to 50- 60 $$/month on energy drinks, then the fact that they produce the same energizing results, rumor has it they even taste better, and on top of that they burn calories, even if it doesn’t turn out to be a significant amount but its better than nothing. In this guys analysis he compares the $ cost /pound of weight lost from calorie expenditure as a result of the beverage, which turns out to be quite expensive for a small hypothetical amount of weight loss, but thats not the point. If you consider the alternative , drinking a regular energy drink or unhealthy soft drink, the differences are quite significant. Just looking at an energy drink can i have here in front of me contains a whopping 260 calories while Celsius is just 10 total.

he says:

Quote
If I drink one a day for a year I’ll therefore burn an additional 3,923 Calories representing 1.1lbs, at a cost of $2 per bottle = $730.That’s $664/lb

Full article: http://bmimedical.blogspot.com/2007/02/worlds-first-calorie-burning-cola.html

This guys missing the point though. I don’t see Celsius as a product thats a new miracle weight loss supplement as hes analyzing it as. Because its not, and Celsius isn’t marketing it as that either. Its simply a healthy alternative to unhealthy and high calorie energy drinks and soft drinks that the public so commonly consumes. To sum it up, i think that guys an idiot and not looking at this from the right perspective .

So lets look at it from the right perspective. Comparing total calories consumed in a year if consumed 1 drink/day:

Celsius : 365 x 10 calories = 3,650 calories consumed/year
regular energy drink: 365 x 260 = 94,120 consumed per year Shocked

so by his calculations it appears hes saying around 4000 calories = 1.1lbs

so you could drink regular energy drinks and consume 94,120 calories representing a gain of 25.88 lbs hypothetically without regular exercise in a year. Or you could consume Celsius and consume just 3,650 calories in one year while burning an additional 3,923, resenting a loss of 1.1 lbs. So when looking at Celsius alone by itself theres’ not much significance in weight loss. Though when comparing it to an alternative energy drink there is a huge difference, a whole 24.78 lb difference from your tubby bum.

I myself will admit that I’m a big health freak and am very conscious of what i put in my body and workout 5-6 days/ week for 1.5 hours at the gym. Drinking a rockstar or monster energy drink “EVERY” time before i go to the gym so i can have an energized optimal workout. I’m a firm believer in this product and think that Celsius is a perfect alternative to my daily 260 calorie rockstar drink before heading to the gym. This way maybe i won’t have to spend so much time trying to keep these abs in tact lol. 260 (my preworkout energy drink) calories to burn isn’t just brushing the dust off your shoulders. I recall riding the stationary bike earlier today and around 20 minutes in was only around 260 calories burnt. Maybe 20 minutes doesn’t sound very long, but i’ll run 3 miles in just over 20 minutes, and I’ll tell yah you’ll be sweating your heiny off after running 3 miles.

Company highlights:

– Selected 3 years in a row for industry awards as Best New Product by
leading beverage magazines and associations

– Featured on television newscasts in virtually every major market and
seen by more than 40 million viewers with an estimated ad-value of
greater than $8 million

– Rated the #1 Consumer Food and Beverage Trend for 2007 by the
prestigious industry analyst Datamonitor

– Celsius, Inc., Names Beverage Guru Erin Heit as Marketing Vice President
Wednesday April 25, 7:30 am ET
Experience at Fuze and Glaceau Vitaminwater will be instrumental to Celsius, Inc. team for future growth

– MMNNNN look at all these healthy attributes Wink
Celsius delivers the unique calorie burning capabilities that today’s consumers want. Celsius is clinically proven to work by raising metabolism 12% over a three hour period. Powered by Green Tea with EGCG, ginger, caffeine, and nutrients, Celsius provides and extended increase in energy. Celsius contains no carbs, no sugar, no chemical preservatives, and no high fructose corn syrup.

Celsius gets celebrity status Shocked Shocked Grin

Celsius(R) ‘The’ Calorie Burning Beverage, Mingles with the Stars on NBC’s EXTRA!
Friday June 8, 2:36 pm ET
Over 3 Million Viewers Tuned In To The ‘Gimme, Gimme’ Segment And Were Turned On To Celsius, One Of The Must Have Items For Consumers

DELRAY BEACH, Fla., June 8 /PRNewswire-FirstCall/ — Celsius Holdings, Inc. (OTC Bulletin Board: CSUH.OB - News) is proud to see its calorie burning, category creating brand, Celsius®, mingling with some of the biggest names in Hollywood. Oprah, Katie Cruise, the crew from Oceans 13, Princess Diana, Paris Hilton, and Celsius all appeared on EXTRA! one of the country’s most watched celebrity news program, on Tuesday, June 5, 2007. Celsius, a great tasting, calorie burning beverage, was highlighted as a hot new must have for consumers, on the “Gimme, Gimme” segment of the show. According to Cision US, Inc, a media evaluation service, the globally known entertainment news show has an estimated audience number of 3,281,536 million.

Of course current fundamentals are grim but i believe that speculation about the future growth and potential of this product to stake a large claim in the energy drink beverage industry. This stock was way under the radar before though now has celebrity status as it appeared on nbc’s EXTRA! on friday as the next must have hot product i believe this is the video of it appearing on extra though of course its the only video on there thats not functioning for me ………. heres the link:

Celsius is also linked on nbc’s Extra! website here: http://extratv.warnerbros.com/extrainfo.html

Summing things up i think that Celsius has an awesome product and huge potential for growth and a large spot in the beverage industry as it gains momentum in the market place. Technically this stock is coming off of its all time lows since its IPO in January of this year.

(sunday night’s analysis) Price broke out of a descending channel with huge volume and a solid 28% single day rally. I think this could be the spark of a new bull trend in the making.

Monday night: Todays move is extremely bullish and look at the volume here. The momentum is very strong and speculation is proving itself worthy of the investment community for Celsius. My gut feeling was that we would see some weakness and people possibly fading the gap. Though the volume amount was so big in the in the first hour of trading and price bounced off of its support at 1.38.

On the intraday breakout i purchased a 1/2 position at 1.53 as the momentum here and volume is huge, i could see this making a quick run to $3 possibly over the short term. Guess we’ll see, for now i’ll just keep this 1/2 position and evaluate a possible buy on a dip soon.

Cameron Fous
Portfolio Manager of TheTechnicalTrader.net



7 Responses to “CSUH.OB - Screw Redbull, I’m drinking Celsius!”


By E K on June 12th, 2007 at 9:26 am

Nice in-depth post. However, this one seems way too risky. There was a Forbes article a while back about this company that pretty much laughed off their findings about the drink.

By The Trader on June 12th, 2007 at 12:00 pm

I’m with EK. Their balance sheet looks like sh1t which is partly why they are selling OTC. Someone might do well on a quick trade, but this isn’t an investment to me. All of the news stories I find are their own propaganda.

Total cash = 10.24k, yes k, not M
Total debt = 1.30M, yes M

By fous on June 12th, 2007 at 1:19 pm

Yes this is a risky trade, as our most of mine since i focus on the OTCBB markets. Though this isn’t an investment for me nor are any of my trades. I capitalize on short term movements in the stock market that are driven by speculation with 1-4 week holding periods, targeting gains of 20% or more.

-fous

By todd on June 14th, 2007 at 9:22 pm

100 million shares outstanding….$113 million market cap at close today of $1.13….on trailing reveneus of about $1 million…basically, this is an off the charts valuation that makes Jones Soda look like an absolute bargain….and Jones which has been cut in half sells for an astronomical 90 p/e but only 10x sales…vs CSUH’s 100x sales…i guess if the drink is going to be a huge seller then there is a story eventually to be had in this stock, but I would be interested at around 10x sales like JSDA…so that would be around 13 cents….

This is one of those stock market traps, people get enthralled by a story and a market opportunity and ignore the outrageous valuation…..a recipe for disaster…just ask those JSDA buyers up at 30 who were willing to pay a 180 p/e because Cramer spammed it.

By Chris on June 15th, 2007 at 5:59 pm

Great piece on this stock. First, let me just say that everyone who posted comments about how risky this stock is, is right on the money, BUT… Sometimes there is room for really speculative stocks like this. I checked into the management (with speculation, buy the management) They have a couple execs with beverage experience, but most notably, one guy who sold a beverage company to Cadbury Schwepps, and one guy on their board who ran GNC… It is obvious they are shooting for distribution in GNC, if they don’t already have it, and then sell the company off. This stock might be a good place to park $500 (not a recommendation to you) and see what happens.

By fous on June 18th, 2007 at 6:11 pm

Quote from: jon4476 on June 15, 2007, 10:50:13 AM
Fous, what are your thoughts on the current technicals? A possible G-pattern coming?

CSUH made a very strong rebound on Fridays session up 18.6% on a decent amount of volume with a bullish candle which closed above the open of the previous -11% candle. Price closed rallied up near the gap point again near 1.38 so this may act as a resistance point with some consolidation before price moves back ahead of 1 .38. G-Pattern? anythings possible, but i think its unlikely that price will make a strong rally from 1.10 to above 1.78 in a short period of time. The 3 day sell-off put a big damper on the positive momentum of this stock. The real momentum moves have short term consolidations before a continuation, but not -40% retracements as we saw here with CSUH.OB. I think its more plausible that price will form some kind of chart pattern such as an ascending or symmetrical triangle. I still like the story here, But the volatility shook me out pretty fast as the bullish momentum got hammered.

Quote from: raginbull on June 17, 2007, 09:55:55 AM
i heard coke is making a similar product and pepsis later on at the faction a the cost of what csuh.ob is selling at. just a fyi

Where did you hear this at Raginbull I’d like to hear more about it if you have anymore info. This would definitely be bad for Celsius which is a very small company with its current fundamentals not looking so pretty. Especially before they have a chance to experience any real significant growth and take a piece of the market share before pepsi/coke came out with a competing product. It would probably be the end of CSUH as pepsi/cole would be backed by their huge industry leading distribution chains and powerful marketing campaigns(there calorie burning drinks would likely be endorsed by some slim sexy celebrity).

By brian on June 21st, 2007 at 2:27 pm

I wish i could get more CSUH.BB, but like always you find somethin god and your wallet aint ready I just bought today @ 1.31 and I’ll probably get more next week on thurs. and prob. pay 1.16 but we will see. COKE/NESTLE is being sued for bogus calorie burn claims for their drink ENVIGA ( a tea not a soda, yuch) and C2 flopped for COKE on taste (their i/2 calorie soda), and pepsi edge tastes awefull. im going to try celsius at my raley’s where i saw it yesterday on my way home hopefully i can afford more stock soon, ill bet pepsi buys it out or coke….

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