A Small Beverage Stock That Could See Massive Gains Based on My Model A new study highlighted in the September issue of “Experimental Gerontology” found that cola-based soft drinks induce memory impairment and influence the degradation of the prefrontal cortex… at least in rats.
After feeding the lab rats on a diet of sugary soft drinks for 57 days, scientists were able to conclude that the rats who were the youngest and given the most cola-based drinks were less able to navigate through the maze-based behavioral testing.
According to the research, consistent and long-term usage of sugary soft drinks could very well lead to the same degenerative cognitive effects in humans. In fact, it might not be far-fetched to say that a warning label to this effect could one day soon grace the cans of sugary, cola-based drinks everywhere.
That could become a massive disruptive force within the food and beverage (F&B) industry. And investors who get on the right side of this once-in-a-lifetime disruption could score enormous profits over the next several years.
I’m talking, of course, about the healthy eating megatrend.
A trend wherein young consumers pay increasing attention to ingredients (71% read beverage and food labels).
Where young consumers are trying to limit their sugar intake (77% are trying to limit sugars).
Where young consumers are going all-organic (more than 50% are increasing the volume of organic products they buy).
And where young consumers are ditching the high-calorie, sugar-loaded carbonated beverages and carb-heavy, pre-processed foods of old.
Now, they’re all buying non-GMO, sugar-free, preservative-free, organic quinoa, acai bowls, and kombucha.
Oh… but they’re just kids, you say?
Well, those kids are growing up, getting jobs, earning salaries, and increasingly turning into the driving force of the U.S. consumer economy.
As that happens, young consumers’ preference for healthy eating will flip the entire $6 trillion food and beverage market on its head…
Allowing for a changing of the guard wherein new titans of industry will emerge.
One huge and rapidly growing vertical in the F&B market that is primed for disruption is the energy drink category.
At $60 billion, the global energy drink market is one of the larger beverage markets in the world. With a 7% compounded annual growth rate, it’s also the fastest growing beverage category.
The major players in this space – Red Bull, Monster, and Rockstar – have innovated over the past several years, coming out with new flavors, new packaging, and new marketing…
But they haven’t innovated where it matters… on the healthy-eating front… and for the most part, they all still sell sugar-loaded, not-that-good-for-you energy drinks.
This reality represents an enormous opportunity for Celsius (CELH), a $7.94 billion beverage company that is optimally positioned to significantly disrupt the $60 billion energy drink market with its breakthrough functional healthy energy drink.
Leaning into its proprietary scientific formulation which combines green tea with EGCG, ginger, and guarana seed to catalyze thermogenesis, Celsius has a created a portfolio of unique, functional healthy energy drinks that have been proven to energize, accelerate metabolism, and burn body fat and calories… all at once.
Plus, the drinks are vegan. Gluten-free. Non-GMO. Contain zero sugar. Zero preservatives. Zero artificial colors or flavors. Zero aspartame.
You know… all the good stuff that young consumers are looking for in a “clean label” these days.
To that end, Celsius has created a scientifically superior and socially more relevant energy drink which has the potential to turn into the next big thing in this massive category.
The potential upside in Celsius stock herein is worth watching. So, does this meet my team's strict “Stage-2” criteria?
Here’s what we’re seeing: - The red descending channel shows CELH’s Stage-4 decline that ended in January.
- The yellow, horizonal trendlines shows the Stage-1 sideways basing area that lasted for roughly 5 months.
- Celsius’ stock price exhibited a golden cross and broke above the upper band of its Stage-1 trading channel on big volume.
- The green ascending channel and white trend line shows more upside to come.
What else we like about this trade: - CELH formed a nice cup and is forming a handle between $100-$115 prior to the next move higher. It’s a good setup.
- Shares have broken above its Nov/Dec levels as it continues to make higher highs.
- Celsius’ breakout is powered by strong catalysts in the energy drink realm.
Over the next few days, I’ll be highlighting more potential Stage-2 stock picks. However, only one meets our high bar toward holding a place in our portfolio. To find out which, make sure to attend the event Wednesday, Aug. 31, at 4 P.M.! Sincerely, |
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