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Normally I get up at 5 am every morning so that I can go worship myself at the gym. However, after years and years of this routine of going into this sleepy dark unoccupied gym every morning, sometimes you just run out of energy. I mean how much fun is it being $$$MR. MARKET$$$ with 19” biceps and a 385 lb bench press if there is no one in there to compete against?
So this morning I went by the convenience store and instead of grabbing a morning coffee, I picked up a 16 ounce can of Monster Energy Drink
and took it to the gym with me. After chugging all 16 ounces, I couldn’t believe my eyes. I saw this other guy in the gym and he was all pumped up like a lizard. He was lifting enormous amounts of weight. He was screaming with each rep. “There’s not enough weight in this gym for me!” followed by “There’s not enough weight on this planet for me!” followed by “There’s not enough gravity on this planet for me! I need to work out on Jupiter!”.
Who was this guy? I was getting very nervous. After closer observation, I realized that it was $$$MR. MARKET$$$. I was looking at myself in the mirror.
Without further adieu, I put in my market order for HANS, Hansen Natural Corporation, which makes Monster Energy Drink.
Today I bought HANS at 89.56. I will sell it in 4 – 6 weeks at 103.18 Here are some other reasons why I like HANS:
Hansen Natural Corporation, through its subsidiaries, engages in the development, marketing, sale, and distribution of beverages in the United States and Canada. The company’s products include natural sodas, fruit juices, energy drinks and energy sports drinks, soy smoothies, functional drinks, sparkling lemonades and orangeades, noncarbonated ready-to-drink iced teas, lemonades, juice cocktails, children's multivitamin juice drinks, seltzer waters, and noncarbonated lightly flavored energy waters. It also markets nutrition food bars and cereals. The company markets its products under Hansen's, Monster, Blue Sky, and Junior Juice brand names to retail and specialty chains, club stores, mass merchandisers, convenience chains, beverage distributors, and health food distributors.
Health nuts once knew Hansen Natural Corp. as a maker of wholesome beverages such as preservative-free natural sodas and low-carb peach smoothies. But these days Hansen is blowing through beverage aisles with an entirely different product….you guessed it Hansen's Monster Energy drinks offer giant doses of caffeine and sugar in big black cans adorned with neon-colored claw marks.
HANS stock is up 250% in the last 12 months. The price momentum of HANS is really compelling. It sports an r^2 coefficient of 0.90 for 12 months and 0.94 for the last 6 months….a steady and strong price climb which I love love to see:
So what is it about Hansen that is making its stock go through the roof? If I drink it, will I be able to apply “The Lariat” to Big Stan Hansen?:
will I get a date with Marcy Hanson?:
Actually if you drink Monster Energy, it really makes you want to pee and makes your heart like the King (Harley Race). But never mind me, there are thousands and thousands of people who are guzzling this stuff. People like this guy:
Now after this guy drinks Monster Energy Drink, he probably thinks he is handsomer than me and has bigger biceps than I do. Well let him go on thinking that way. In reality, I can snap him in half and use his femur to floss my teeth. Actually, I would probably put him in a headlock and pop his brain like a zit. Maybe that’s why people are drinking this stuff..it makes them as confident as $$$MR. MARKET$$$.
Here are some real testimonials from Monster Energy Drinkers:
“Cody Thomas -Post Falls ID | 2005-04-07
I'm a 17yr old High School student, and I drink Monster Energy almost religiously. It really comes in handy around Semester Finals and other huge tests, for pulling off all nighters and still having enough feul to sit through boring teachers\' lectures. Monster Energy, you are my Hero, and well on your way to becoming my God!”
Maybe Cody should study a little harder or maybe he has not yet had enough “feul”.
“Andrea SAltigerald - Carol Stream IL | 2005-03-15
I really love this stuff it has to be the best energy drink alive. The other day I drove from chicago to champaign and back to chicago and if it wasn\'t for monster i would not have been able to stay awake and energized. Thanks, Andrea”
What Andrea forgot to tell you is that she had to go back to Chicago because she forgot why she was driving to champaign.
“Robert James - Troy MI | 2005-02-24
Monster kicks ass i love i t. I could drink them all day. One time i drank three of them in a row and iit gave me super human strength and i saved a cat stuck in a tree. Its good stuff. Keep up the work”
Hmmmm. Maybe there isn’t that much to do in Troy, MI. I wonder what happened to that cat after Robert “saved” it?
“Angelina Carpinone - Arnold CA | 2005-01-05
Monster kicks major ass! I love this drink so much my mom grounds me from it when im bad, who the hell do you know that does that!? I even collect the tabs to make braclets and necklaces out of them. i love this drink so much ill go to the store just to get one, ill buy 2 for every day of the week. it needs to be sold in every store in the country! thanks much for this drink!”
This is amazing. I am very optimistic that our future generations will be able to outcompete the Japanese in all areas of academia.
“Mark Morin - Hancock MI | 2005-01-10
Monster rocks i luv drinking it, i drink one just before every one of my football games, it helps my team win!”
Mark forgot to mention that he is the trombone player in the pep band.
“Ben Anderson - Hancock MI | 2005-01-10
Oh man i want one like now too bad i am in fuc*in schooll!!!!!!”
I don’t think Ben has too much to worry about, pretty soon he will be asked to leave “fuc*in schooll!!!!!!
“Jeff Vrolyks - Simi Valley CA | 2004-11-10
This website kicks ass! I'm very proud to be part of Monster, I am a trade development manager for Monster in Ventura and Santa Barbara County. Just for a heads up, i created a new drink to add to the already nice roster, Jack Daniels and Assault. I call it the Jack-Ass for obvious reasons, and you turn into a jackass after a few of them! You could even put one ounce jack, one ounce absolute and fill with Monster Assault and you then have an "Absolute Jack-Ass".”
Now we’re talking, Jeff.
“Howard Plum - Schenectady NY | 2004-08-31
I Just got done Drinking a can of your MONSTER and HOLY SHIT!!!! I feel like I just did 10 Lines of YAYO Seriously this stuff should require ID to Buy!!! LoL... I will never sleep again.....”
I love the movie, “Scarface”.
Ok Ok…here are some more articulate reviews:
“Monster Energy Drink's sugary sweetness was a little much for the early morning hours, but not completely unpleasant. The initial energy rush was pretty potent. The boost is comparable to a couple shots of espresso or strong cups of coffee. The energy it provided stretched consistently throughout the day. However, I felt a slightly shaky, jittery feeling set in for a brief period in the early afternoon. Overall, Monster performs well and definitely adds pep to the day.”
And I like this one too:
“Unleash the Beast: Monster Energy Drink
For those of you looking for a great-tasting, energy-boosting beverage, Monster energy drink is a great choice. Depending on your location, Monster may be a hard drink to find. You may have to go to multiple locations to find your sought after beverage. Many large gas stations have a nice variety of energy drinks, and you may get lucky if you stumble upon the right one.
Caged within a large, 16 oz. can, Monster comes with a kick that is very satisfying. The can is very attractive, one in particular being black with neon green and white writing and a green pull tab on the top of the can. Down the front side of the can are neon green claw marks, the logo for the monster drinks. This energy supplement displays its main energy-packing contents across the top ring which include: Taurine, Ginseng, B Vitamins, and also L-Carnitine. Don't forget the necessary caffeine listed within the ingredients list.
Monster Energy: The Taste
If you've ever had an energy drink, you know that they all taste close to the same, some being better than others. Monster is one of those that tastes great. The first taste may hit you if you aren't used to energy drinks. If you are familiar with them, the first taste will be very satisfying.
The taste of the drink tastes close to a sour gumball or candy and if you aren't a fan of sour/bitter things, then run away. It's not unbearably sour, but it can still pack a punch. The first sip is usually the worst. Towards the bottom of the can, it tends to become stronger. The can is carbonated, thus shaking will not bring positive results. The aftertaste is somewhat odd, and burping after drinking does not leave the most pleasant taste in your nose and mouth. That may sound gross, but we are all humans and it is a natural reaction.
Monster seems to have a good energy kick also. The buzz factor is somewhat noticeable, which helps to improve your stamina and physical performance. Monster Energy comes highly recommended by us here at Factexpert.com.
Pick this drink up today!
So what’s all the fuss about Monster?? It’s basically this:
Ingredients - Carbonated water, sucrose, glucose, citric acid, taurine, natural flavors, sodium citrate, l-carnitine, panax ginseng root extract, ascorbic acid, caffeine, sodium chloride, niacinamide, riboflavin, guarana seed extract, inositol, glucuronalactone, pyridoxine hydrochloride, cyanobalmin.
Put them all together and you get the big Green Monster. Not the one at friendly Fenway, but the one that’s spewing green cash back to HANS.
HANS has what is known as “accelerating sales growth”. Accelerating sales growth is a sign that something for a company is going dramatically right. On its own, sales growth is no big deal. All companies are supposed to boost their sales from year to year. But they typically do so at a rate that gradually slows as they mature and saturate their markets. A sudden acceleration in a company's sales growth rate, however, might mean that a product has suddenly caught on with the public, an advertising campaign is working, or both.
Sales over the past year for the HANS totalled just $209 million, less than 1% of Coca-Cola’s revenue. Earnings came in at $27 million, vs. Coke's $4.7 billion. Ok, so it’s still a small company. That’s what makes it a great investment opportunity. HANS’ earnings per share jumped 215% last year, and are projected to increase by 79% this year and 26% next year by the timid ANAL-yst who is covering this stock.
Hansen's first-quarter sales, reported May 10, soared 92% year-over-year to $60 million. Earnings quadrupled to $8.8 million. Per-share earnings of 73 cents smoted the 60 cents that the only ANAL-yst covering the stock was looking for. Management credited the performance to "record sales" of its Monster Energy drinks, which include a low-carb version. The increase was offset by, well, everything else, really — juices, sodas and smoothies.
Scott Van Winkle, an analyst with Boston-based investment bank Adams Harkness whose forecast Hansen crushed, was impressed. He raised his full-year 2005 earnings estimate to $3.10 from $2.60, and notes that he's not sure that's enough.
"Despite the dramatic increase in our forecasts, we still believe the estimates could prove conservative," wrote Van Winkle in a May 11 research note. "Our forecasts utilize conservative revenue growth expectations given the current rate of distribution gains and category growth, and discount the margin growth that should occur as energy drinks encompass a rising percentage of sales."
Ok..so the ANAL-yst says that HANS will net $3.10 per share in 2005. What he doesn’t realize is that HANS can’t sell any Monster unless it gets out in the shelves of all of the convenience stores and mega marts. If you read through the rest of those on-line testimonials on the www.monsterenergy.com website, most of them are from people clamoring to have Monster placed on the shelves of their local store. Once their distribution channels are expanded, Monster sales will be bonkers. This hot summer will see PHENOMENAL sales for Monster. You pay about $2.00/can for this stuff and the sales will ring up quick when you have people, who are addicted to it, buying 3 cans/day.
Come on $$$MR. MARKET$$$, are you going to waffle on us and not tell us how much money HANS will actually make this year, Hmmmm…..what if I make a market call and I’m wrong? I’m nervous. Don’t be alarmed, I’m only kidding….
In August, HANS will report the most amazing sales growth ever seen in a beverage company. Don’t believe me? Go down to your nearest gas station with a convenience store and ask the friendly sales clerk how the Monster has been moving. That’s how a real investor gets his info.
Next quarter, HANS will post earnings of $1.08/share on $90 MM of revenue. This will get them on their way to an amazing $4.03/share for 2005 on revenues of $335 million. Using the ANAL-ysts forward PE of 28, this would project to a share price of $112.84, which is well past my sales price.
How did they do it?
Hansen has jolted the Monster brand with a dose of guerrilla marketing. Teams of Monster ``ambassadors'' give out samples of the product at concerts, beach parties, and other events. The company also sponsors motocross, surfing, and skateboarding competitions. Hansen representatives in black Monster vans supplement the company's network of 300 independent distributors by assembling store displays and restocking specially designed racks in convenience store coolers.
Hansen now owns an 18% share of the energy-drink category. While Red Bull remains the leader with nearly half of the market, Hansen's energy-drink sales increased 162% last year -- more than three times Red Bull's growth rate. Say goodbye to the Bull. Nationwide demand for all energy drinks shows little sign of slowing down. Sales for 2004 were about $1 billion , growing from $600 million in 2003. Make room for Monster!
Now that more women reach for energy drinks than in the past, Hansen targets both genders with Rumba. Hansen's products cover all age groups from toddlers to older folks, but the Corona, Calif.-based firm keeps pumping out new ideas.
It recently launched Monster Assault, a darker, more tart addition to its Monster line. Monster Energy comes in a black can with a neon green M splashed on the front; Assault is packaged in a camouflage-patterned can with a bright red M. As a smaller company, Hansen is able to adapt more quickly to new trends than the cola kings. Plus, it's less risky for Hansen as a minor player to launch a new product because the scale required isn't as great.
There is more good news coming from HANS. It is a well managed company, not a flash in the pan. Hansen received the prestigious Beverage Forum Company of the Year Award for companies below $1 billion in revenue Wednesday for its performance in 2003. Judging criteria included the company's financial performance, depth of senior management and positioning for future growth.
The company’s long and short term debt ratios are in line with industry averages reflecting a solid financial condition. Operating margins are improving and operating cash flow remains positive. As long as the positive fundamental outlook does not change (and I just told you why it won’t) , this stock should be a strong performer over the intermediate term.
Some other factoids:
• The prior quarter Operating Margin of 24.53% is greater than the TTM (Trailing Twelve Month) Operating Margin of 21.78%.
• The Return on Assets (ROA) is 42.53. A high ROA is a good profitability measure since it reflects the ability of management to produce profits from each dollar of company assets. The average ROA for this Industry Group (Bev.-Non- Alcohol) is 10.71.
• The Operating Cash Flow was Positive in the last three years.
• The Return on Equity (ROE) is 63.43%. This ratio helps represent the future ability of a company to grow earnings. The average ROE for this Industry Group (Bev.-Non-Alcohol) is 22.38%.
•The Current Ratio is 2.88. Current ratios above 1 mean that a company’s shortterm debts are less than its assets. The higher the ratio, the stronger the company’s finances.
• The Long-Term Debt/Capital is 0.24%. This indication of financial leverage measures the extent of a firm’s capital that is provided by lenders. Below 25% reflects well on a company’s financial stability. The average LT Debt/Capital for this Industry Group (Bev.-Non-Alcoh) is 39.33%.
So what does the big Monster think?
Rodney C. Sacks, chairman and chief executive officer, said, "Our exceptional performance demonstrates the Company's growing position in the energy drink market. Growing consumer demand continues to be experienced for Monster Energy(TM) drinks, as well as Lost(TM) Energy drinks in 16 oz. cans.” He also adds, “Hansen's alliance with Lost was a strategic move that instantly put us on the radar of the skeptical, hard-to-reach, Gen-X beverage consumer.”
The company also states, “We believe that one of the keys to success in the beverage industry is differentiation, such as making Hansen's products visually distinctive from other beverages on the shelves of retailers. We review our products and packaging on an ongoing basis and, where practical, endeavor to make them different, better and unique. The labels and graphics for many of our products are redesigned from time to time to maximize their visibility and identification, wherever they may be placed in stores, and we will continue to reevaluate labels and graphics from time to time. “
“During the first quarter of 2005, we entered into several new distribution agreements for the sale of certain products in the ordinary course. We intend to continue building our national distributor network and sales force throughout the remainder of 2005 to support and grow the sales of our products.”
He’s not very energized is he? Maybe he OD’d on Monster. Well maybe I’ll leave you with this final blurb which might just summarize all of this a little bit better.
“Debra Cobb - Chicago IL | 2004-11-21
I really enjoy your product and I've gotten everyone I know to try it as well. Red Bull is now a memory. Thanks for making a great product.”
I think I’ll just stick with beer for now. So what do you think of this stock, and my HUGE write-up on it?
I am HUGE!!
$$$MR. MARKET$$$
So this morning I went by the convenience store and instead of grabbing a morning coffee, I picked up a 16 ounce can of Monster Energy Drink
and took it to the gym with me. After chugging all 16 ounces, I couldn’t believe my eyes. I saw this other guy in the gym and he was all pumped up like a lizard. He was lifting enormous amounts of weight. He was screaming with each rep. “There’s not enough weight in this gym for me!” followed by “There’s not enough weight on this planet for me!” followed by “There’s not enough gravity on this planet for me! I need to work out on Jupiter!”.
Who was this guy? I was getting very nervous. After closer observation, I realized that it was $$$MR. MARKET$$$. I was looking at myself in the mirror.
Without further adieu, I put in my market order for HANS, Hansen Natural Corporation, which makes Monster Energy Drink.
Today I bought HANS at 89.56. I will sell it in 4 – 6 weeks at 103.18 Here are some other reasons why I like HANS:
Hansen Natural Corporation, through its subsidiaries, engages in the development, marketing, sale, and distribution of beverages in the United States and Canada. The company’s products include natural sodas, fruit juices, energy drinks and energy sports drinks, soy smoothies, functional drinks, sparkling lemonades and orangeades, noncarbonated ready-to-drink iced teas, lemonades, juice cocktails, children's multivitamin juice drinks, seltzer waters, and noncarbonated lightly flavored energy waters. It also markets nutrition food bars and cereals. The company markets its products under Hansen's, Monster, Blue Sky, and Junior Juice brand names to retail and specialty chains, club stores, mass merchandisers, convenience chains, beverage distributors, and health food distributors.
Health nuts once knew Hansen Natural Corp. as a maker of wholesome beverages such as preservative-free natural sodas and low-carb peach smoothies. But these days Hansen is blowing through beverage aisles with an entirely different product….you guessed it Hansen's Monster Energy drinks offer giant doses of caffeine and sugar in big black cans adorned with neon-colored claw marks.
HANS stock is up 250% in the last 12 months. The price momentum of HANS is really compelling. It sports an r^2 coefficient of 0.90 for 12 months and 0.94 for the last 6 months….a steady and strong price climb which I love love to see:
So what is it about Hansen that is making its stock go through the roof? If I drink it, will I be able to apply “The Lariat” to Big Stan Hansen?:
will I get a date with Marcy Hanson?:
Actually if you drink Monster Energy, it really makes you want to pee and makes your heart like the King (Harley Race). But never mind me, there are thousands and thousands of people who are guzzling this stuff. People like this guy:
Now after this guy drinks Monster Energy Drink, he probably thinks he is handsomer than me and has bigger biceps than I do. Well let him go on thinking that way. In reality, I can snap him in half and use his femur to floss my teeth. Actually, I would probably put him in a headlock and pop his brain like a zit. Maybe that’s why people are drinking this stuff..it makes them as confident as $$$MR. MARKET$$$.
Here are some real testimonials from Monster Energy Drinkers:
“Cody Thomas -Post Falls ID | 2005-04-07
I'm a 17yr old High School student, and I drink Monster Energy almost religiously. It really comes in handy around Semester Finals and other huge tests, for pulling off all nighters and still having enough feul to sit through boring teachers\' lectures. Monster Energy, you are my Hero, and well on your way to becoming my God!”
Maybe Cody should study a little harder or maybe he has not yet had enough “feul”.
“Andrea SAltigerald - Carol Stream IL | 2005-03-15
I really love this stuff it has to be the best energy drink alive. The other day I drove from chicago to champaign and back to chicago and if it wasn\'t for monster i would not have been able to stay awake and energized. Thanks, Andrea”
What Andrea forgot to tell you is that she had to go back to Chicago because she forgot why she was driving to champaign.
“Robert James - Troy MI | 2005-02-24
Monster kicks ass i love i t. I could drink them all day. One time i drank three of them in a row and iit gave me super human strength and i saved a cat stuck in a tree. Its good stuff. Keep up the work”
Hmmmm. Maybe there isn’t that much to do in Troy, MI. I wonder what happened to that cat after Robert “saved” it?
“Angelina Carpinone - Arnold CA | 2005-01-05
Monster kicks major ass! I love this drink so much my mom grounds me from it when im bad, who the hell do you know that does that!? I even collect the tabs to make braclets and necklaces out of them. i love this drink so much ill go to the store just to get one, ill buy 2 for every day of the week. it needs to be sold in every store in the country! thanks much for this drink!”
This is amazing. I am very optimistic that our future generations will be able to outcompete the Japanese in all areas of academia.
“Mark Morin - Hancock MI | 2005-01-10
Monster rocks i luv drinking it, i drink one just before every one of my football games, it helps my team win!”
Mark forgot to mention that he is the trombone player in the pep band.
“Ben Anderson - Hancock MI | 2005-01-10
Oh man i want one like now too bad i am in fuc*in schooll!!!!!!”
I don’t think Ben has too much to worry about, pretty soon he will be asked to leave “fuc*in schooll!!!!!!
“Jeff Vrolyks - Simi Valley CA | 2004-11-10
This website kicks ass! I'm very proud to be part of Monster, I am a trade development manager for Monster in Ventura and Santa Barbara County. Just for a heads up, i created a new drink to add to the already nice roster, Jack Daniels and Assault. I call it the Jack-Ass for obvious reasons, and you turn into a jackass after a few of them! You could even put one ounce jack, one ounce absolute and fill with Monster Assault and you then have an "Absolute Jack-Ass".”
Now we’re talking, Jeff.
“Howard Plum - Schenectady NY | 2004-08-31
I Just got done Drinking a can of your MONSTER and HOLY SHIT!!!! I feel like I just did 10 Lines of YAYO Seriously this stuff should require ID to Buy!!! LoL... I will never sleep again.....”
I love the movie, “Scarface”.
Ok Ok…here are some more articulate reviews:
“Monster Energy Drink's sugary sweetness was a little much for the early morning hours, but not completely unpleasant. The initial energy rush was pretty potent. The boost is comparable to a couple shots of espresso or strong cups of coffee. The energy it provided stretched consistently throughout the day. However, I felt a slightly shaky, jittery feeling set in for a brief period in the early afternoon. Overall, Monster performs well and definitely adds pep to the day.”
And I like this one too:
“Unleash the Beast: Monster Energy Drink
For those of you looking for a great-tasting, energy-boosting beverage, Monster energy drink is a great choice. Depending on your location, Monster may be a hard drink to find. You may have to go to multiple locations to find your sought after beverage. Many large gas stations have a nice variety of energy drinks, and you may get lucky if you stumble upon the right one.
Caged within a large, 16 oz. can, Monster comes with a kick that is very satisfying. The can is very attractive, one in particular being black with neon green and white writing and a green pull tab on the top of the can. Down the front side of the can are neon green claw marks, the logo for the monster drinks. This energy supplement displays its main energy-packing contents across the top ring which include: Taurine, Ginseng, B Vitamins, and also L-Carnitine. Don't forget the necessary caffeine listed within the ingredients list.
Monster Energy: The Taste
If you've ever had an energy drink, you know that they all taste close to the same, some being better than others. Monster is one of those that tastes great. The first taste may hit you if you aren't used to energy drinks. If you are familiar with them, the first taste will be very satisfying.
The taste of the drink tastes close to a sour gumball or candy and if you aren't a fan of sour/bitter things, then run away. It's not unbearably sour, but it can still pack a punch. The first sip is usually the worst. Towards the bottom of the can, it tends to become stronger. The can is carbonated, thus shaking will not bring positive results. The aftertaste is somewhat odd, and burping after drinking does not leave the most pleasant taste in your nose and mouth. That may sound gross, but we are all humans and it is a natural reaction.
Monster seems to have a good energy kick also. The buzz factor is somewhat noticeable, which helps to improve your stamina and physical performance. Monster Energy comes highly recommended by us here at Factexpert.com.
Pick this drink up today!
So what’s all the fuss about Monster?? It’s basically this:
Ingredients - Carbonated water, sucrose, glucose, citric acid, taurine, natural flavors, sodium citrate, l-carnitine, panax ginseng root extract, ascorbic acid, caffeine, sodium chloride, niacinamide, riboflavin, guarana seed extract, inositol, glucuronalactone, pyridoxine hydrochloride, cyanobalmin.
Put them all together and you get the big Green Monster. Not the one at friendly Fenway, but the one that’s spewing green cash back to HANS.
HANS has what is known as “accelerating sales growth”. Accelerating sales growth is a sign that something for a company is going dramatically right. On its own, sales growth is no big deal. All companies are supposed to boost their sales from year to year. But they typically do so at a rate that gradually slows as they mature and saturate their markets. A sudden acceleration in a company's sales growth rate, however, might mean that a product has suddenly caught on with the public, an advertising campaign is working, or both.
Sales over the past year for the HANS totalled just $209 million, less than 1% of Coca-Cola’s revenue. Earnings came in at $27 million, vs. Coke's $4.7 billion. Ok, so it’s still a small company. That’s what makes it a great investment opportunity. HANS’ earnings per share jumped 215% last year, and are projected to increase by 79% this year and 26% next year by the timid ANAL-yst who is covering this stock.
Hansen's first-quarter sales, reported May 10, soared 92% year-over-year to $60 million. Earnings quadrupled to $8.8 million. Per-share earnings of 73 cents smoted the 60 cents that the only ANAL-yst covering the stock was looking for. Management credited the performance to "record sales" of its Monster Energy drinks, which include a low-carb version. The increase was offset by, well, everything else, really — juices, sodas and smoothies.
Scott Van Winkle, an analyst with Boston-based investment bank Adams Harkness whose forecast Hansen crushed, was impressed. He raised his full-year 2005 earnings estimate to $3.10 from $2.60, and notes that he's not sure that's enough.
"Despite the dramatic increase in our forecasts, we still believe the estimates could prove conservative," wrote Van Winkle in a May 11 research note. "Our forecasts utilize conservative revenue growth expectations given the current rate of distribution gains and category growth, and discount the margin growth that should occur as energy drinks encompass a rising percentage of sales."
Ok..so the ANAL-yst says that HANS will net $3.10 per share in 2005. What he doesn’t realize is that HANS can’t sell any Monster unless it gets out in the shelves of all of the convenience stores and mega marts. If you read through the rest of those on-line testimonials on the www.monsterenergy.com website, most of them are from people clamoring to have Monster placed on the shelves of their local store. Once their distribution channels are expanded, Monster sales will be bonkers. This hot summer will see PHENOMENAL sales for Monster. You pay about $2.00/can for this stuff and the sales will ring up quick when you have people, who are addicted to it, buying 3 cans/day.
Come on $$$MR. MARKET$$$, are you going to waffle on us and not tell us how much money HANS will actually make this year, Hmmmm…..what if I make a market call and I’m wrong? I’m nervous. Don’t be alarmed, I’m only kidding….
In August, HANS will report the most amazing sales growth ever seen in a beverage company. Don’t believe me? Go down to your nearest gas station with a convenience store and ask the friendly sales clerk how the Monster has been moving. That’s how a real investor gets his info.
Next quarter, HANS will post earnings of $1.08/share on $90 MM of revenue. This will get them on their way to an amazing $4.03/share for 2005 on revenues of $335 million. Using the ANAL-ysts forward PE of 28, this would project to a share price of $112.84, which is well past my sales price.
How did they do it?
Hansen has jolted the Monster brand with a dose of guerrilla marketing. Teams of Monster ``ambassadors'' give out samples of the product at concerts, beach parties, and other events. The company also sponsors motocross, surfing, and skateboarding competitions. Hansen representatives in black Monster vans supplement the company's network of 300 independent distributors by assembling store displays and restocking specially designed racks in convenience store coolers.
Hansen now owns an 18% share of the energy-drink category. While Red Bull remains the leader with nearly half of the market, Hansen's energy-drink sales increased 162% last year -- more than three times Red Bull's growth rate. Say goodbye to the Bull. Nationwide demand for all energy drinks shows little sign of slowing down. Sales for 2004 were about $1 billion , growing from $600 million in 2003. Make room for Monster!
Now that more women reach for energy drinks than in the past, Hansen targets both genders with Rumba. Hansen's products cover all age groups from toddlers to older folks, but the Corona, Calif.-based firm keeps pumping out new ideas.
It recently launched Monster Assault, a darker, more tart addition to its Monster line. Monster Energy comes in a black can with a neon green M splashed on the front; Assault is packaged in a camouflage-patterned can with a bright red M. As a smaller company, Hansen is able to adapt more quickly to new trends than the cola kings. Plus, it's less risky for Hansen as a minor player to launch a new product because the scale required isn't as great.
There is more good news coming from HANS. It is a well managed company, not a flash in the pan. Hansen received the prestigious Beverage Forum Company of the Year Award for companies below $1 billion in revenue Wednesday for its performance in 2003. Judging criteria included the company's financial performance, depth of senior management and positioning for future growth.
The company’s long and short term debt ratios are in line with industry averages reflecting a solid financial condition. Operating margins are improving and operating cash flow remains positive. As long as the positive fundamental outlook does not change (and I just told you why it won’t) , this stock should be a strong performer over the intermediate term.
Some other factoids:
• The prior quarter Operating Margin of 24.53% is greater than the TTM (Trailing Twelve Month) Operating Margin of 21.78%.
• The Return on Assets (ROA) is 42.53. A high ROA is a good profitability measure since it reflects the ability of management to produce profits from each dollar of company assets. The average ROA for this Industry Group (Bev.-Non- Alcohol) is 10.71.
• The Operating Cash Flow was Positive in the last three years.
• The Return on Equity (ROE) is 63.43%. This ratio helps represent the future ability of a company to grow earnings. The average ROE for this Industry Group (Bev.-Non-Alcohol) is 22.38%.
•The Current Ratio is 2.88. Current ratios above 1 mean that a company’s shortterm debts are less than its assets. The higher the ratio, the stronger the company’s finances.
• The Long-Term Debt/Capital is 0.24%. This indication of financial leverage measures the extent of a firm’s capital that is provided by lenders. Below 25% reflects well on a company’s financial stability. The average LT Debt/Capital for this Industry Group (Bev.-Non-Alcoh) is 39.33%.
So what does the big Monster think?
Rodney C. Sacks, chairman and chief executive officer, said, "Our exceptional performance demonstrates the Company's growing position in the energy drink market. Growing consumer demand continues to be experienced for Monster Energy(TM) drinks, as well as Lost(TM) Energy drinks in 16 oz. cans.” He also adds, “Hansen's alliance with Lost was a strategic move that instantly put us on the radar of the skeptical, hard-to-reach, Gen-X beverage consumer.”
The company also states, “We believe that one of the keys to success in the beverage industry is differentiation, such as making Hansen's products visually distinctive from other beverages on the shelves of retailers. We review our products and packaging on an ongoing basis and, where practical, endeavor to make them different, better and unique. The labels and graphics for many of our products are redesigned from time to time to maximize their visibility and identification, wherever they may be placed in stores, and we will continue to reevaluate labels and graphics from time to time. “
“During the first quarter of 2005, we entered into several new distribution agreements for the sale of certain products in the ordinary course. We intend to continue building our national distributor network and sales force throughout the remainder of 2005 to support and grow the sales of our products.”
He’s not very energized is he? Maybe he OD’d on Monster. Well maybe I’ll leave you with this final blurb which might just summarize all of this a little bit better.
“Debra Cobb - Chicago IL | 2004-11-21
I really enjoy your product and I've gotten everyone I know to try it as well. Red Bull is now a memory. Thanks for making a great product.”
I think I’ll just stick with beer for now. So what do you think of this stock, and my HUGE write-up on it?
I am HUGE!!
$$$MR. MARKET$$$
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