PreMarket Prep is the #1 go-to source for everything you need to know before the market opens! Join our expert hosts as they break down the latest market trends, analyze key indicators, and provide actionable insights to help you navigate the trading day ahead.
Category
đź—ž
NewsTranscript
00:00So let's go Celsius here for a second and just talk about its disaster yesterday because this
00:05was an epic disaster. Spinner talking, CELH obviously, was saying, and Spinner,
00:13you said they had some conference or something, they were presenting at some conference or
00:17something yesterday. Anyways, obviously didn't go well. Stock fell another 10% yesterday,
00:22just another 10% just to continue punish everybody who's been trying to call a bottom on this
00:28forever. $98.84, the high in May. The stock is $32. Back in May, people were paying 90 times
00:39earnings, I think it was, 90 times earnings for a company that makes drinks. Not an AI company,
00:46a company that makes beverages. Never pay 90 times earnings for a company that makes beverages.
00:54This is why the stock has fallen off substantially because when that growth rate starts to slow,
01:00and it inevitably will, you get punished severely. So now we're 36 times earnings still. I looked at
01:06Celsius yesterday. Still trading, 36 times earnings. It's probably still your most expensive
01:14beverage maker out there, right near the top. What's the monster? What's the monster PE? Because
01:19that's your comp. Monster PE, MNST, best of breed, trades 24 times forward earnings. So it's
01:28still trading at a 50% premium to monster after falling 65%. This is where you got to have your
01:37fundamental hat on, combine the fundamentals with the technicals. Celsius, and we've been talking
01:42about this stock negatively all the way down. People asking me why, they were saying maybe it's
01:48a takeover candidate. It's not a takeover candidate. You know why? It's a trade 36 times
01:52earnings. At 15 times earnings, gets attractive. At 15 times earnings, the stock is 12 bucks.
01:59So I don't know if it's going straight there. There's still maybe some growth, maybe some story,
02:02and maybe at this point in time, you could probably take a flyer, but everybody's been
02:07trying to take flyers all the way down. Point is, you got to do the combo approach. You got to have,
02:13you know, and again, you got to have a hell of a story, but 32 times earnings for a beverage stock,
02:18not for me. You know what, Spinner just made a good point on the General Electric,
02:24because they had, if you had one share of GE, or let's see, each holder of GE common stock
02:32received one share of GE healthcare on the spinoff in December of 2022. There were some
02:39spinoffs in there, yes. There was some spinoffs,
02:42but you can add all that stuff up. I still don't think you'd get your money back.