Another stable earnings report may have once again positioned Celsius Holdings (CELH) as a solid growth play to consider as the company's calorie burning, pre-workout beverage gains traction in its niche market.

The reported sales of $2.5 million for the first quarter of 2012 were up from a number of $2.2 million during the same quarter last year, but more significantly was the increase of 41% over the fourth quarter of 2011. Returns and stockpile write-off has hampered the numbers at times during the past year, but the numbers announced last week may have provided a turning point that the company can use to build momentum.

Volume picked up slightly after the announcement, proving that interest in the company and its rebounding numbers may be growing again, but although volume tapered off again in the days following the report, the perfect storm may be formed when the numbers coincide with any PR push initiated by 5WPR, the firm hired earlier this year to take care of Celsius' PR plans.

With numerous flavors of carbonated and non-carbonated drinks already competing in the pre-workout and healthy beverage markets - complemented by powdered add-to-water packets and a Celsius energy "shot" - the company may be in its best position yet as far as product offerings, and with earnings now looking stable, the next move could be a noticeable growth spurt.

In today's fickle and volatile market, the "buy and hold" game plan has pretty much gone by the wayside, which means that stocks such as this one can trade along relatively under the radar until a tidbit of interest-drawing news hits the wires to move the share price quick. For those investors that cannot trade all day due to holding down a day job, the "buy and hold" strategy is still highly relevant, assuming limit orders are used in conjunction.

That's where potential slower growth stories such as Celsius Holdings - Premier Alliance Group (PIMO) is another one - come into play, pick up a few shares at a time while the story plays out.

In response to an email sent to 5WPR earlier this year relating to the signing of Celsius Holdings as a client, VFC's Stock House received this quote the CEO, Ronn Torossian:

"We are excited to implement a consumer focused campaign, to reach trendsetters, celebrities and heighten awareness of the Celsius brand."

If the first quarter numbers are any indication, the strategy may be working.

For sustained growth to endure, stability must come first; and that is something that Celsius Holdings has realized for quite a few consecutive quarters now. After a near year-long lull in news, an expanded product line and with signs of earnings stability solidified, it could be time to consider this one a growth story again.

Disclosure: Long CELH, PIMO.

Contact VFC's Stock House: vfc@vfcsstockhouse.com

Originally published at: http://vfcsstockhouse.com

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