This stock offers limited prospects

Article Excerpt

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration: CELSIUS HOLDINGS INC., $25.35, (Nasdaq symbol CELH; TSINetwork Rating: Extra Risk) (www.celsius.com; Shares o/s: 235.0 million; Market cap: $6.3 billion; No divd.) makes Celsius, a growing lifestyle energy drink brand. In the quarter ended September 30, 2024, Celsius’s revenue was $265.7 million, down 31.0% from $384.9 million a year earlier. The company lost $557,000 in the quarter, or nil per share, compared to a profit of $70.4 million, or $0.30. One of the key areas that Celsius is reporting weakness is in convenience stores. Traffic is down in 2024 due to lower consumer confidence and spending. Going forward, Celsius has some key strengths. A partnership with PepsiCo (its U.S. distribution partner) has introduced it drinks to 95% of stores across the U.S. It’s also particularly popular with Gen Z (including people…