11/24/2023 0 Comments Cola celsiusThe beverage landscape is littered with companies that initially held the promise of success for its investors, only to be met with the overwhelming task of competing in a crowded marketplace where brand differentiation remains one of the key goals of any new beverage company.Ĭompanies such as Jones Soda Co. More often than not, these new faces, looking to grab the brass ring, are met with considerable challenges ranging from raising capital on favorable terms to developing brand recognition through successful marketing initiatives. There are always new ideas that surface from entrepreneurs looking to become the next big drink category. ![]() The beverage industry is one of the most competitive among the consumer staples sector of the S&P 500. ![]() We did, however, want to revisit our CELH thesis from 2015, along with the reasons why we felt the way we did then, and more importantly how we feel now. That award goes to a very small bioenergy company, located in South Florida that recently restructured itself while successfully emerging from Chapter 11 Bankruptcy. While we are extremely bullish on the prospects for CELH in 2020, it is not our #1 stock pick for the upcoming New Year. It was, in fact, the best performing stock in our portfolio for 2015. The shares climbed from a 2014 year-end price of 0.50 cents to end the 2015 year at $1.94 resulting in a price gain of some 288%. Shortly after we wrote that article we named Celsius Holdings, Inc. will ultimately be acquired by a large beverage company. If you go back to when we first started publishing articles on Seeking Alpha in early 2015, you will find an article titled 10 Compelling Reasons Why Big Beverage May Want To Keep Their Eyes on Celsius Holdings, in which we laid out our thesis for why, we believe, Celsius Holdings, Inc. We have been aggressively purchasing shares of CELH over the past few months adding to our position on any dips. We continue to follow this company, its compelling story and its impressive results, since its public debut in 2006 and rate it a STRONG BUY, especially on any dips. ![]() One of the few bright spots in the field of competition has been Celsius Holdings, Inc. Judging from the 10-year stock prices of many of these companies, they have failed leaving many small beverage company investors with losses. Many of the most promising new brands have struggled for many years to achieve market share. It has been a rough year for most investors in small beverage companies, as their stock charts, shown below, clearly indicate.
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