Yesterday, a South Florida jury determined that Flo Rida won his lawsuit against Celsius over breach of contract. The damage for Celsius came out to $82 million after they didn’t hold up their end of the deal in an endorsement deal that took place from 2014-2018.
Flo Rida was promised a 1% stake in the company in exchange for his help in building the brand through marketing. He played a pivotal role in getting the company from a valuation of $10 million to $8 billion – where it sits today. Despite hitting certain sales goals, introducing the drink to millions around the world, and jumpstarting a new era for the company, he was never paid his 1%.
Initially, Flo Rida – or Tramar Dillard as he is otherwise known – sued Celsius for just $30,000. As the trial went on, though, it became apparent he was entitled to far more. The end result was a 1% payout based on Celsius’ current valuation of $8 billion.
However, that valuation quickly shrunk after Celsius stock slid 12%. This comes after the stock had an incredible run last year, gaining 115% in the last 365 days. Even in the last 3 months, the stock was climbing steadily, until yesterday’s verdict was released.
So, what does this mean for current shareholders and potential investors? Is it time to get out? Or, is this quick dip a good opportunity to buy more shares at a value? We’ll show you three key findings that will help you make your decision through the VectorVest stock forecasting system below.
Even With Yesterday’s 12% Drop, CELH Has Excellent Upside Potential and Safety
The VectorVest system tells you exactly what to buy when to buy it, and when to sell it – eliminating guesswork, human error, and emotion from your investing strategy. This is all possible through a proprietary stock rating system – one that has outperformed the market for decades now.
Instead of getting bogged down by complex technical analysis, just track three simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). These sit on a scale of 0.00-2.00 for effortless analysis. Ratings over 1.00 indicate overperformance and vice versa.
Based on the culmination of these ratings, VectorVest gives you a clear buy, sell, or hold recommendation for any given stock at any given time – including CELH. Here’s what’s happening with the stock right now:
- Excellent Upside Potential: The RV rating is a comparison of a stock’s price appreciation potential 3-years out compared to AAA corporate bond rates and risk. As for CELH, the RV rating of 1.59 is excellent.
- Excellent Safety: To help you assess risk, the RS rating analysis a company’s financial consistency and predictability, debt-to-equity ratio, and business longevity. As for CELH, the RS rating of 1.42 is excellent as well.
- Fair Timing: Until recently, the price trend for CELH was excellent. It remains to be seen what will happen in the coming weeks as the market reacts to this news. As of now, though, the RT rating of 0.95 is fair – just below the average. It’s calculated based on the direction, dynamics, and magnitude of a stock’s price movement. It’s taken day over day, week over week, quarter over quarter, and year over year.
These three ratings contribute to an overall VST rating of 1.32 – which is very good. So, does that mean CELH is still a good buy? Or, is it worth waiting to see what happens in the coming days/weeks? Get a clear answer on your next move by analyzing the stock free here.
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VectorVest advocates buying safe, undervalued stocks, rising in price. Right now, CELH has excellent upside potential and safety. However, the timing is just fair.
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