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Updated report from this weekend:

Celsius Holdings (CELH) has hired the public relations agency 5WPR, according to reports circulating the wires on Monday morning.

5WPR is a highly-reputable PR agency, representing some very big-named clients.  The addition of Celsius to the firm's client list could have contributed to last week's boost in volume. 

"Given our extensive experience creating and implementing successful public relations programs for other beverages, we are confident 5WPR will deliver amazing results for Celsius and its position as a leader in the functional beverage market," noted 5WPR founder and CEO, Ronn Torossian.

Celsius has taken similar courses of action before.  During the heights of the marketing blitz of 2010, the company had relationships with both Zenith International and Crossmark, two firms whose work was supposed to launch Celsius into the mainstream of the beverage market.  These relationships coincided with a PR push by Mario Lopez and advertisements on many of the top cable channels.

Those efforts did not pay off in terms of sales, so any investors still hanging around from those days will be watching intently to see what 5W can bring to the table, while new investors may be coming on board to take part in the new PR push, judging by last week's volume.

As emphasized over the weekend, a couple of high-volume days does not mark a turnaround, but it looks like Celsius is ready to give the PR push another try.

This could be a developing story worth keeping an eye on, as the last time this company's stock had a big move, the returns were hefty.

This weekend's report below:

Volume and price were both rising for shares of Celsius Holdings (CELH.PK) last week, and shares closed Friday at the high of the day on significant volume for the lightly-traded stock. Although two days of solid trading patterns does not mark a turnaround just yet, there is reason to believe that interest may again be growing for the Celsius calorie-burning pre-workout drink.

The company reported another round of earnings earlier this month, and although the report had little initial impact on the share price, it may have provided a starting point for new investors to start taking interest in this potential rebound story.

After a volatile year in 2010 that saw huge expenditures thrown at a nationwide advertising campaign that ultimately did not pay off as planned, Celsius spent the better part of 2011 regaining its foothold in the pre-workout and health food beverage markets.

While the sales numbers continue to be modest, signs of stability are emerging.

The fourth quarter sales numbers totaled $1.8 million, up from just $103,000 during the same quarter of the previous year, but down a bit from the $2.5 million number announced for the previous quarter.

As noted in the earnings press release, Celsius continues to reduce the amount of discounts given, which has led to a boost in revenue, but also masks the fact that significant growth is not being realized just yet. To tackle that issue, Celsius plans to return to the small-marketing approach that was utilized before the multi-million dollar ad blitz - which included Mario Lopez - that emptied the company's cash coffers in 2010.

"The Company announced today a strategy to expand the Celsius brand through Direct to Consumer initiatives and to restructure and support its retail sales efforts. The campaigns will include DRTV, Affiliate Networks, Banner Advertising, Social and Digital Media, Direct Mail, Viral Marketing and Health Club Sampling," read last week's press release.

In conjunction with the small marketing strategy, Celsius added a new flavor of powdered packet to the inventory, this one titled 'Outrageous Orange'. The new flavor joins the already-distributed berry flavored powdered packets as a convenient alternative to the sparkling and non-carbonated canned drinks.

With other new flavors, such as the non-carbonated Lemon Iced Tea and Strawberry/Kiwi drinks, Celsius hopes to expand its presence in the beverage industry and spark a potential turnaround that would attract some new investor interest, as well as recover a battered share price and market cap.

Money is a concern for investors as Celsius looks to move forward after having exhausted most of its cash reserves, but as mentioned last quarter, most of the debt the debt that was coming due has been pushed back to 2014. That allows the company and new CEO Gerry David to grow the brand, and potentially grow revenue to a point where profits can be realized while debt is paid down.

If 2010 was a year of failed momentum, 2011 could be viewed as a year of regained footing. This sets up 2012 as a potential year of gained momentum and recovery. That said, it's a volatile and risky industry, so it'll be a work-in-progress to compete with the established big boys, hence the move into the pre-workout drink sector.

Not yet on the cusp of being called a solid rebound play, but the new found stability marked by the below numbers may be providing a starting point for another round of growth.

Celsius Holdings Recent Sales Numbers:

Q4 2011 - $1.8 million

Q3 2011 - $2.5

Q2 2011 - $2.0

Q1 2011 - $2.2

Q4 2010 ~ $135,000

Q3 2010 - $1.8

Q2 2010 - $4.1

Q1 2010 - $2.3

Q4 2009 - $2.4

Q3 2009 - $1.3

Q2 2009 - $1.2

Q1 2009 ~ $1.0

Last week's volume spike makes Celsius Holdings a stock to watch again, and as is usual for these lightly-traded small cap stocks, when they move - they can move quick.

Could be worth watching again, things are getting interesting.

 

Disclosure: Long CELH.

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

Originally published at: http://vfcsstockhouse.com

For more on Celisus Holdings products and distribution visit:  http://www.celsius.com

For more on 5WPR visit:  http://www.5wpr.com

 

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