Thread by @JonahLupton

If anyone likes pullbacks to the 50d, you just got it with $CELH

This will be a great opportunity for some smart investors to come in and take advantage of the 25% pullback from the recent highs.

Tuesday was probably profit taking, yesterday was flat and today it's down 15% because of a stock offering but clearly most people are clueless about the details so let me help you.

The company is selling 6.5M shares but only 1M shares are new shares.
otcdynamics.com/celh-celsius-h…

5.5M shares are being sold by a few large insiders that have owned this stock for many years, they are just taking some profits like most of us do from time to time. On average they are selling 10% of their shares which means they are keeping the other 90% of their shares.

Since the company is only issuing 1M new shares it means we're getting1.5% dilution yet the stock is down 15% today. Doesn't make much sense.

They priced the shares at $62.50 (lower than I would have hoped) but that doesn't mean the stock should trade down to those prices.

Perhaps the people selling today forget that Nielsen scan data for April was +200% and for June was +195%. I'm going to assume that July won't be much different than June so it's very likely we still get that blowout number for Q2 earnings in August.

Since $CELH is raising approximately $62 million, that cash will be used to secure enough aluminum cans to keep up with demand and to build up product inventory to also keep up with demand from consumers, new stores and DSD partners.

This tiny 1M share raise is nothing more than a company fueling up the tank in order to keep up with their insane growth.

If your company was growing at 200% YoY, wouldn't you want some extra cash in the bank to make sure you didn't run out product in the middle of summer.

Remember that $CELH already announced they're in 92,000+ stores and working with 180+ DSD partners.

It's very likely both of these numbers are higher when the company reports Q2 numbers.

My revenue projections have not changed. My conviction has not changed.

Disclosure: I bought $CELH call options today, spread out between July, August and September expirations.

I have zero concerns about where $CELH is going over the next 12+ months. This selloff is nothing more than a buying opportunity for investors that understand the story.

Whoops, with regards to Nielsen scan data, I actually meant to say:

April +200%
May +195%
June ????

Guess I need to learn my months 😩