Celsius Holdings, Inc. (OTCMKTS:CELH) Catches an Updraft
Yesterday the stock of Celsius Holdings, Inc. (OTCMKTS:CELH) climbed in double digits after a relatively disappointing streak on the charts. CELH put on a good 12% over the last session, even though the PR and filing that the company put up over the last couple of weeks had no positive effect on the price.
CELH shot to its late-April highs, propelled by a press release announcing nearly $16 million in new financing, originating from a deal with a Chinese venture capital firm and a couple of U.S. investors and media personalities. We covered the deal and its quirkier details in previous articles.
The company’s quarterly report went up on May 11 and contained the following:
- $232 thousand in cash
- $1.9 million in current liabilities
- $4.6 million in Q1 revenues
- $245 thousand in Q1 net profit
The results should come as no surprise, despite CELH‘s current pink sheet status. The company is a former NASDAQ-traded entity, which delisted in late 2010. This means that CELH actually has an operational business, selling health drinks, advertised as ‘negative calorie’ beverages due to promoting the organism’s fat burning processes during physical strain.
The company’s April climb that doubled the price in the matter of a few sessions was obviously unsustainable, especially with CELH becoming so heavily overbought. However, the stock is doing its best to cling to its gains and even though the inevitable retrace came, the price is still holding its own. The report did not wow investors despite the quarter of a million in quarterly profit. Then again, CELH started its run from around $1.50 per share, so even its current levels are a boon to anyone who did not try to chase it up the chart.
Which way the price goes from here remains to be seen.
