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Monster Beverage (MNST -4.7%) slips lower on persisting concerns over the impact of energy...

Monster Beverage (MNST -4.7%) slips lower on persisting concerns over the impact of energy drinks. Three members of Congress have sent letters to companies in the industry requesting more information on their products and advertising claims, according to the WSJ. A rumor is also circulating around that the company could be Einhorned.
Comments (3)
  • herbinsky
    , contributor
    Comments (76) | Send Message
     
    Einhorn or not, the stock is due for a hit. No tree grows to the sky even if it is an energy driven tree. The category was bound to slow or worse, for one reason or another sooner or later (and it is now later), and its leading share possibly vulnerable to competitive incursions as management and other resources were being thrown at its other strategies. Also margins in my view are unsustainable.
    18 Jan 2013, 02:49 PM Reply Like
  • louiswhitelaw
    , contributor
    Comments (10) | Send Message
     
    I bought at $41. Trimmed half the position at $52 3 months later. See where it goes from here. I think up. Concerns are overblown.
    19 Jan 2013, 02:06 AM Reply Like
  • DollarsToDonuts
    , contributor
    Comments (9) | Send Message
     
    Concerns are definitely overblown. Energy drinks have existed for decades now with much of the same ingredient profiles. Take Japan's Lipovitan for example, which has been in existence since 1962. People try to demonize energy drinks for their caffeine amounts, but most energy drinks have less caffeine per ounce than your typical Starbucks espresso. Hell, there's even more taurine in baby formula than there is in a Monster. Given Monster's leading market share, their shareholder friendly stock repurchases, and their push into international markets, I see a much higher share price in the next 3-5 years. In fact, I'm hoping a panic-induced sell off continues so I can continue to load up.
    19 Jan 2013, 09:06 PM Reply Like
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