IB Net Payout Yields Model

Invest like me - only at Covestor.com

Celsius: Unaltered Growth Story

By -

Updated - June 12

Celsius continues to collapse due to Pepsi optimizing inventory levels. Pepsi cut inventory levels by another $20 to $30 million in Q2 following $20 million in Q1 for a total of up to $50 million. The stock has now fallen from $100 to only $62 and lily on the path to the previous lows at $50. 

  • Celsius Holdings (NASDAQ:CELH) is on watch after several analysts lowered Q2 estimates on the energy drink company due in part to further inventory reduction by PepsiCo (PEP).
  • During an investor conference on Tuesday, Celsius Holdings (CELH) management quantified the PepsiCo (PEP) inventory reduction during the quarter at $20 million to $30 million sequentially, which came on the heels of a $20 million inventory reduction in Q1. "While some of the reduction was driven by PEP's working capital efficiencies and CELH starting to ship more to PEP's smaller distribution warehouses vs larger mixing centers, we believe the bulk of the 1H inventory cut reflects that PEP's inventories of Celsius exiting 2023 were too high for the recent sales rate," updated Morgan Stanley analyst Eric Serotta.

Finviz Chart

 

Originally posted on May 8

  • Celsius Holdings, Inc. reported disappointing Q1 results due to an inventory issue with PepsiCo.
  • The energy drink growth story remains intact, with strong sales data and international expansion.
  • The stock dip presents a buying opportunity, currently trading below a peer stock trading at just 7x EV/S targets.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
After a year of impressive results, Celsius Holdings, Inc. (NASDAQ:CELH) reported a disappointing quarter due to a surprise inventory issue. The healthy energy drink company has stumbled a couple of times in the last few months, leading to the opportunity to buy the stock far below the recent highs. My investment thesis remains ultra-Bullish on CELH stock, with the growth story unaltered despite the market hiccups.

Read the full article on Seeking Alpha. 

Disclosure: Please review the disclaimer page. No position mentioned. 

Comments

Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts strugg...
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disc...
Read more