Catalysts that rank HANS a buy:
1) Hansen Natural saw fourth-quarter profits soar 152% higher to $0.75 a share. The market recognizes the company’s consistency as HANS has beaten the general market in terms for returns for the last four straight years. For 2006, HANS is up 34.6%.
2) Hansen has the highest pre-tax profit margins in its industry -- by far. 18.8% vs Jones Soda's (JSDA) meagre 4.8%. HANS has the highest ROE in its peer group, 65%, with quarterly revenue growth has been 90%+. It's P/E ratio is high but still lower than its competitor Leading Brands, which trades at 47 vs 44 for HANS. With 20%+ growth expected for HANS, I think you should pay up for the stock.
3) Stocks that make new highs typically continue to make additional new highs. For now the trend is behind HANS, with a bright earnings outlook and solid results. It has become a momentum player's dream, so be carefull.
4) The Technicals of HANS look great too, but if you want to get in, wait for a pull back. Its W%R is near 20 (a W%R of 20 means stock is overbought) & MFI of close to 60 (MFI of 80 means stock is overbought). HANS is close to its upper-end of the Bollinger band, but has been breaking out to new-highs quite often. Tuesday, the stock was down 2.51% so you can buy a little bit & wait for a correction to get back in the stock.
Disclosure: I do not own the stock
● Related: Hansen Natural: Sugar + Caffeine = Stock of the Decade
