Monster Worldwide Has Monsterous Potential (MNST)

This Associated Press article Analysts Back Monster; Shares Climb caught my attention. I like this company as a long-term investment. In the U.S., I imagine that Monster is mature, meaning that future growth will tend to come more from economic and population growth, as well as demographic growth as older non computer users drop out of the workforce and are replaced by Internet savvy workers. I imagine though, that market growth in the U.S. must be nearing its short-term potential. That was my initial thought.

Then I thought more. The company’s called Monster Worldwide (MNST) for a reason. I suspect that the majority of future growth will come from international revenue sources. I haven’t tried to find out what percentage of revenue is currently coming from international revenue sources. That only tells us about the present. It would be meaningful, however, if one could dig deeply enough into past earnings reports to determine the international growth trend for the company, as that would help to forecast an expected future growth rate.

But why bother with all that when common sense is sufficient? This company clearly has exceptional international growth potential. Monster is tapping it. How well it continues to do so is an unknown. But it’s enough to know that the potential is great and Monster is in the best position of any company in its market to take advantage of it.

That’s truth trading, keeping the odds on your side. The stock’s taken a beating recently, caught in the options backdating scandal. That will be a blip in the long run when Monster gets its mojo back.