CELH Stock For The Win?

CELH stock has definitely seen better days.

Since May, Celsius (NASDAQ: CELH) has shed nearly half of its value.  

I’ll explain why this happened in a moment.  But first, let me explain to you how I came to discover Celsius. 

You see, I’m not a big fan of energy drinks.  They’re typically loaded with sugar, and when I’ve had them in the past, they’ve always made me agitated and jittery.

That being said, sometimes I need a pick-me-up that I can’t get from coffee.  5-Hour Energy has always been a solid alternative, but it tastes like cough medicine.  And Red Bull and Rockstar Energy Drinks are essentially poison in a can, with the latter containing 63 grams of sugar in just one serving.  To put that in perspective, that’s nearly twice the amount the American Heart Association recommends as the maximum amount of sugar one should consume in a single day. 

So earlier this year, when I discovered that Celsius had almost no sugar, I decided to give it a shot.  It was really good.  It gave me the energy I needed without the jitters or enough sugar to give me diabetes.  Although to clarify, I only buy the versions of Celsius that don’t include stevia.  That stuff isn’t so good for you either.

Of course, just because I like the stuff doesn’t mean the stock is worth anything.  So when I saw that CELH stock had been on a nasty downtrend since May, I decided to investigate. 

CELH Stock Crushed it!

CELH stock had quite a ride over the past 5 years, delivering gains in excess of 5,000%.

A one-time investment of $5,000 turned into more than $250,000.  A quarter of a million dollars!  That ain’t chump change.

Of course, you didn’t need to be a rocket scientist to know that this wouldn’t last.  When the stock was trading at nearly $100 a share back in May, it was clearly running way too hot.  And once sales began to slow, the momentum that catapulted CELH stock to the moon ran into a brick wall. 

Over the past few months, the stock has lost around half its value.  So the question is: how much further can it fall, and can the stock claw its way back up?

The stock has been pressured by a number of negative factors, including a rather unflattering article in the Wall Street Journal about the company’s health claims.  Those health claims revolve around boosting metabolism and burning fat.  I wouldn’t be surprised if those health claims are questionable, either. 

Inflation has also pressured sales for all energy drinks.  Not just Celsius.  The higher price point is making it less attractive to consumers with limited purchasing power.  

It’s still hard to get an accurate read on future sales data, so I’d be cautious about making any sudden moves on this thing.  Although at current levels, the stock seems to be trading in line with what it’s actually worth. 

If sales numbers impress next quarter, I don’t see any reason why the stock couldn’t increase in value by between 8% to 10%.  And while there’s nothing wrong with an 8% or 10% gain, it’s not really the kinds of gains we focus on here at Energy & Capital. 

In fact, I’m looking at a new opportunity right now that I believe could deliver gains in excess of 82% over the course of the next six months.  It’s a unique energy play designed specifically to support the rapid growth of the AI market.  A market, by the way, that turned Nvidia (NASDAQ: NVDA) into a $2.3 trillion juggernaut. 

Of course, what I really like about this one is that Sam Altman, Bill Gates and Elon Musk have already invested $3 billion in this thing.  If it’s good enough for three of the richest men in the world, it’s sure as hell good enough for us.  You can read more about this new energy stock in this special Energy & Capital investment alert.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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