Burning Celsius Holdings? Print E-mail
By Vinny Cassano   
Friday, 26 February 2010 09:00

When I last posted about Celsius Holdings, Inc. (Nasdaq: CELH), the company was still trading under the ticker CSUH on the OTCBB market and investors were anticipating some dramatic price action after the implementation of an expected secondary offering that was to take place in conjunction with a move to the NasdaqCM.

Today, Celsius Holdings trades on the NasdaqCM for roughly $3.50/share - not the drastic price drop many were expecting, but there was also no news attributed to a spike in price (as many others would have liked).

Celsius Holdings, Inc. (NASDAQ:CELH) markets CelsiusĀ®, a calorie burning drink.

It's also known that the hedge fund Pentwater Capital is now in possession of at least 800,000 shares of the CELH stock, according to a recent SEC filing, and this, in my opinion, is a tell.

For the past few months the Celsius stock and the small Celsius shareholders have been the victims of an incessant barrage of 'bash attacks' - to the point where some have dedicated thousands of hours of their lives to ensure that no piece of news released by the company will be perceived positively by anyone, let alone the small investor. Common sense dictates that only those with a whole lot of money at stake (one way or the other) might dedicate so much of their time to one particular stock; if you've got nothing vested, there's no reason to bash.

It's also my opinion that there's big money out there, disappointed that the CELH stock did not sink any further - despite all the efforts by the 'bash crew.' It's quite possible that the onslaught on the company will continue until either the stock price reaches their 'buy point' or it becomes 'time to run the stock.'

With Pentwater in control of so many shares, these guys can play the low-volumed CELH stock like Tiger Woods plays the ladies, so be prepared for some volatility - in my opinion - both up and down.

When all is said and done, the future of the company still lies in whether the consumer will buy the product. It's really as simple as that. If the Celsius product doesn't catch on, like many predicted, then the company won't make it; but if the product flies as the global trend shifts towards healthier foods and beverages, then investors may be sitting on future profits.

Despite the expected some short term volatility, I'm still in for the long term.Ā  As always, these are just my opinions and each investor should conduct his or her own DD and come to his or her own conclusions.

Disclosure: Long CELH

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