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Monster Growth on Monster Energy drink made by Hansen Co. (HANS)

I was viewing Krispy Kreme Donuts (KKD) earnings report on Yahoo! Finance and then went on to read an article on it, through that article I read an article on Hansens Monster Energy (HANS) drink with anaylst thinking it will be the next KKD on its quick rise and possible hard down fall because HANS stock price has gone up 6,000%. Monster Energy drink sales and energy drink trends were being related to KKD by anaylst, but I beg to differ. I do not see how you can relate a dessert food with an energy drink. I do not think a Krispy Kreme Donut consumer thinks they are going to think and focus sharper or get a boost of energy to stay awake where as Monster Energy drink consumers do. They say energy drinks are just a trend. I do not think this is the case because many new companies are coming out with their own energy drinks to take shelf space away from the big guys Monster and Red Bull Energy drink. Lately, new energy drinks such as Rockstar, Who’s Your Daddy, and even Hulk Hogan’s “Hogan Energy” have hit the shelves besides Coffee Caffiene drinks like Starbuck’s (SBUX) Double Shot. Energy drinks are rich with sugar, caffiene, and ginseng. Other ingredients include some minerals and vitamins if you are lucky.

Currently HANS is ranked #2 as the fastest growing companies in Fortune’s 100 Fastest Growing Companies this year. HANS just recently created a partnership with Anheuser-Busch to help Bar and Resturant Sales, increase distribution, increase market position to make Monster Energy Drink #1 over it’s main competitor Red Bull Energy drink. HANS current stock price is around $34 which is 20 times it’s forward earnings statement projections. HANS Monster Energy Drink is considered to overtake Red Bull’s market position to dominate as #1 in Energy Drink sales by June 2008. I feel there is still room for HANS to go higher then its $52 stock price high on growth and earnings projections for the company. The company beginning stock price was around $.07 cents. Talk about a turn around story for a penny stock starting in 1996 and 10 years later your stock being worth probably around $1 million. I feel their is still growth, stocksplits, and possible buyout for Hansens by a bigger company like Coke or Pepsi. The 1 month chart shows HANS could possible pull back some more, but if you are buying long the 1-5 year charts show a bullish uptrend with still more upside. The 10 year chart expecially shows HANS being sold-off hard at the 52 week highs showing increase buying just recently. I will do another review on this stock in a couple of months to see where its at.

What do I drink? Personally underway to stay wake during those late hour shifts I have bought around 4 12-Pack cases of Red Bull. I don’t necessary like them (the taste), but they do give me a caffiene boost to focus on my work, surfing the internet, and studying stocks. I am going to try out Monster Energy drink soon. I hope it’s relatively the same price for more drink. If so I’d switch because Red Bull is such a small can. I’d like to have more to drink and more to boost me awake!

6 responses

  1. Thanks for your comments on my blog. Based on your NetworthIQ posting looks like you are undercapitalized really to trade successfully and need to find really winning trades to cover commissions etc. probably… especially with the wide spreads on options already against you. but the risk is of losing a large chunk of the account. If you can make it work that’s great.

    December 23, 2006 at 7:59 pm

  2. Hey MooM,

    I wouldn’t quite agree with you on being
    under capitalized because if that was the case
    only the rich could trade. True I can not
    make as much profit because my trades are
    smaller, but over the long run I can build
    my capital. Commissions are $15 b/s so it
    is still profitable to trade 2 contracts making
    $1 dollar after taxes. Right now I am in the
    hole. My trading has been weak because I have
    been cheap to cheap on buying my options out of the money. -FN

    December 24, 2006 at 8:11 am

  3. Vincent Gaita

    I tasted many energy drinks, but the Monster brand is the one energy drink with the greatest taste! This brand is here to stay, and I would bet by this year 2007, it takes the number one spot over Red Bull.

    February 5, 2007 at 1:07 am

  4. Vincent,

    I’ve never tasted Monster energy drink, but I read everything about it and follow the charts. I definitely think it can also be #1 this year. If they keep their profits up and growth the stock could make another good move for another stock split.

    February 5, 2007 at 3:00 am

  5. Now it is 11/12/07 almost a year last and the price is at $43 or a 10 move up. It’s PEG is at .74!!!! Talk about a time to buy with a PE of 29 times earnings. Still mega growth and I have come to starting drinking the Monster KHAOS juice drink more then Red Bull, although I think Red Bull is still my favorite. BUY BUY BUY. I will be looking into options since the market has fallen this stock will be a SUPER BUY once the market has been fully corrected with such high growth and good PE.

    November 13, 2007 at 6:13 am

  6. Pingback: Another post on Hansen (HANS) Monster Energy Drink Company – 100% gains « Beginner Investor by Paul Meyer aka financeninja

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