The Monster Created By Wall Street
Citron Research • 25 Comments
Citron Research • 25 Comments
Mon, Jul. 18, 12:01 PM
Mon, Jul. 18, 8:57 AM
- Monster Beverage (NASDAQ:MNST) is on watch after Wells Fargo downgrades the beverage stock to Market Perform from Outperform with shares sitting close to their 52-week high ($162.77).
- Buy ratings from Wall Street firms still outnumber sell ratings by a two-to-one ratio.
- MNST -1.50% premarket to $159.18.
Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Thu, Jun. 23, 2:48 AM
- San Francisco will have a second chance to vote on whether to tax sugar-sweetened beverages after city officials added the measure to a November ballot that could expand the hotly-debated levy deeper into the Bay Area.
- The penny-per-ounce tax proposal follows the city's legal victory last month against the soda industry, which tried to halt its effort to introduce warnings on advertisements for drinks with added sugar.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Thu, Jun. 16, 3:16 AM
- Philadelphia is set to become the first major American city with a soda tax despite a multimillion-dollar campaign by the beverage industry to block it.
- The City Council is expected to give final approval today to a 1.5 cent-per-ounce tax on diet and regular soda, iced tea, energy drinks, juice drinks with less than 50% juice, and other sugary beverages.
- That would add $1.01 to the cost of a 2-liter soda, $0.21 to a 13.7-ounce Starbucks Frappuccino bottle and $2.16 to a 12-pack of soda.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL
Thu, Jun. 9, 10:30 AM
- Monster Beverage Corporation (NASDAQ:MNST) announces preliminary results of its “modified Dutch auction” tender offer, which expired yesterday.
- A total of approximately 13.6M shares of Monster’s common stock were validly tendered and not validly withdrawn at or below a purchase price of $156.00 per share.
- Additionally, approximately 6.5M shares were tendered through notice of guaranteed delivery at or below such purchase price.
- Rodney Sacks and Hilton Schlosberg, who are officers and members of the Board of Directors of Monster, have tendered 1,850,901 and 1,064,190 shares, respectively.
- Monster expects to accept for payment an aggregate of approximately 12.8M shares of its common stock at a purchase price of $156.00 per share, for an aggregate cost of $2.0B.
- MNST is +0.883% to $156.55.
- Source: Press Release
Fri, May 20, 7:31 AM
- Philadelphia has the soda industry in its sights with a sugary drink tax on the agenda for the city council to vote on in June.
- Mayor Jim Kenney is in favor of the tax and is using the angle that it could be used to help fund prekindergarten programs, libraries, and public parks.
- The proposed tax is on the hefty side ($0.03/oz) and could increase prices by over 50% on some products. An alternative container tax has also been bandied around. although it wouldn't bring in the same amount of tax dollars.
- It's unclear which direction the city council will go with lobbying efforts on both sides picking up.
- Related: KO, PEP, DPS, MNST, COT.
Fri, May 20, 2:21 AM
- The U.S. soda industry faces its next threat in Philadelphia, which is weighing a tax that could raise soft drink prices by 55% to 60% on average.
- Mayor Jim Kenney is pitching the measure to pay for prekindergarten and other popular services.
- Philadelphia's city council plans to vote on the proposed tax next month, which would cover regular soda and other sugar-added beverages including energy drinks and ice tea.
- Related stocks: KO, PEP, DPS, MNST, FIZZ
Wed, May 18, 2:54 AM
- San Francisco is set to become the first U.S. city to require health warnings on advertisements for soda and other sugar-added drinks after the beverage industry failed to get a court order to stop it.
- The law goes into effect July 25 and will require that billboards and other public advertisements include the language, "WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay."
- Related stocks: KO, PEP, DPS, MNST, FIZZ
Tue, May 10, 8:28 AM
- Monster Beverage (NASDAQ:MNST) announces that it began its modified Dutch auction tender offer to purchase up to $2.0B in common stock.
- The terms of the offer include Monster picking up the shares between a price of $142 to $160 before the tender expiration date of June 8.
- Shares of Monster Beverage closed at $148.79 yesterday vs. a 52-week trading range of $113.08 to $160.50.
Mon, May 2, 10:02 AM
- Monster Beverage (MNST +2.6%) is higher after UBS raises its price target on the beverage stock to $170 after digesting the company's Q1 report.
- National Beverage (FIZZ +2.4%), Dr Pepper Snapple (DPS +1.3%), and PepsiCo (PEP +0.7%) are also ahead of broad market averages. It's hard to say for sure, but Warren Buffett highlighting the inconsistency in taxing soda drinks and not all sugary foods could be drawing some notice with investors.
- Previously: Buffett takes show to CNBC (May 2)
Fri, Apr. 29, 1:29 PM
- Monster (MNST +12.9%) rips higher after a nifty $0.07 EPS beat that was split almost evenly between sales growth and margin gains.
- On Wall Street, Susquehanna raised estimates on the beverage company after factoring in the company's strong Q1 report.
- Analyst Pablo Zuanic forecast FY16 EPS of $3.78 and FY17 EPS of $4.45. He also assigned a 30% premium to Monster in comparison to peers to derive a new price target of $132. The Neutral stance on MNST from Zuanic is based in part on some risk in international markets and the potential for further disruption during the transition to the Coca-Cola system.
- On top of earnings today, Monster struck a key distribution deal with Coca-Cola Amatil (OTCPK:CCLAF, OTCPK:CCLAY) and announced its intent to buy back $2M in shares through a modified Dutch auction tender process.
- Monster's trading volume today is already 2X normal activity.
- Previously: Monster Beverage beats by $0.06, beats on revenue
Fri, Apr. 29, 9:12 AM
- Gainers: PRGN +75%. GNW +16%. P +13%. AMZN +12%. SDRL +11%. EXPE +11%. MNST +11%. ROVI +10%. SNMX +9%. LNKD +7%. CRC +7%. DNR+7%. DRYS +7%. TIVO +6%. LGCY +6%. SHPG +5%. GPL +5%.
- Losers: BIOC -22%. GLNG -17%. EPAY -17%. MOH -15%. SRCL -15%. IMGN -14%. SYNA -11%. AKS -8%. HCLP -8%. ALR -6%. GILD -6%. RXDX -6%.
Fri, Apr. 29, 8:58 AM
Thu, Apr. 28, 5:30 PM| Thu, Apr. 28, 5:30 PM | 3 Comments
Thu, Apr. 14, 9:12 AM
- Bottled water consumption in the U.S. will outpace soda drinks on a per capita basis for the first time ever this year, according to data from Euromonitor.
- The gap is expected to widen between now and 2020 as the shift towards healthier consumer habits continues.
- Beverage companies have made up for the shortfall in soda demand through innovation in energy drinks, premium milk, and juices.
- Euromonitor chart on U.S. consumption of bottled water vs. soda drinks (via Bloomberg)
- Related stocks: DPS, KO, PEP, COT, MNST, SODA, OTCPK:NSRGY, OTCPK:NSRGF.
- Related ETF: SGG
- Now read Unfit For This Millennial's Portfolio: The Fizzling Of The Coca-Cola Empire
Monster Beverage Corp. is a holding company which conducts its businesses through its subsidiaries. It involves in the development, marketing, sale and distribution of alternative beverages which refers to combined non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve... More
Sector: Consumer Goods
Industry: Beverages - Soft Drinks
Country: United States
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