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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
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T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
  • Coke In Talks To Buy Monster Beverage-WSJ 0 comments
    Apr 30, 2012 3:40 PM | about stocks: KO, MNST

    According to the Wall Street Journal Coca-Cola Co. (NYSE:KO) is evaluating an $11 billion plus acquisition of Monster Beverage Corp. (NASDAQ:MNST). At over 30 times earnings I think this acquisition is not a good idea of Coca Cola. While I'm sure Coke could increase Monster's sales through improved distribution, this is too large of an acquisition on a company that is facing increased competition, and which I would argue lacks the brand value to warrant such a price. I think as an investor if Coca Cola were to invest $11 billion into their own energy brands, it is very likely that the result would be something greater than what Monster offers. I'd be really curious to hear what Coca Cola's largest investor Warren Buffett thinks of this deal, but I would doubt that he is really excited about it at this price.

    http://online.wsj.com/article/SB10001424052702303916904577375900742730404.html?mod=WSJ_hp_LEFTTopStories

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: KO, MNST
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