Tue, Jan. 6, 4:16 PM
- GasBuddy.com projects gas prices will average $2.64 per gallon in 2015.
- Most economists see a boost in U.S. retail spending from the gas savings with the exception of regions highly dependent upon the energy industry.
- While some Q4 reports from restaurant chains and retailers may show a marginal lift in sales due to the drop in gas prices, insiders think quantifying the impact will be more art than science.
- The following sub-sectors have been tapped by analysts as potential under-the-radar beneficiaries of the gas price effect.
- C-stores:KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA.
- Theme parks: SIX, FUN, DIS, CMCSA, PLAY.
- Beverages: KO, PEP, COT, DPS, BUD, SAM, BREW, TAP, MNST.
Tue, Jan. 6, 2:51 PM
- Beverage sales in convenience stores rose 3.6% Y/Y for a 4-week period ending on December 28, according to data culled by Wells Fargo.
- Sales for Coca-Cola (KO +1.2%) products were up 4.8%, while PepsiCo soda items saw a 2.4% bump.
- On the energy drink front, Monster Beverage (MNST +3.4%) sales were up 12.4% and Red Bull gained 8.3%.
- A drop in gas prices in the U.S. and some successful pricing initiatives in the sector helped stoke the gain, says WF's Bonnie Herzog.
Tue, Jan. 6, 1:57 PM
Dec. 23, 2014, 7:25 PM
- It’s pretty clear why many energy stocks are hurting amid falling crude oil prices, but Morgan Stanley has researched across industries to determine some less clear-cut winners and losers.
- Airlines consume huge amounts of fuel, but the firm says American Airlines (NASDAQ:AAL) and Allegiant Travel (NASDAQ:ALGT) should benefit more than most from lower oil prices since they do not hedge the price of fuel to reduce price volatility.
- Among autos, Tesla (NASDAQ:TSLA) draws concern because "lower-for-longer oil certainly hurts the case for mass-market adoption of electric vehicles.”
- Since lower gas prices should reduce shipping costs, Stanley sees the benefit trickling into Q1 per-unit shipping costs at Amazon (NASDAQ:AMZN).
- The firm likes Monster Beverage (NASDAQ:MNST) on the idea that Americans getting cheaper gas might be more ready to splurge on energy drinks, and gas stations and convenience stores account for 75% of MNST’s sales.
- Among apparel companies and retailers, Stanley likes brands that are most popular with lower-income consumers, who they believe are most likely to put the money they save into new purchases: PLCE, FL, FINL, BWS, SKUL, ARO, BURL, ROST.
Dec. 16, 2014, 10:46 AM
Dec. 1, 2014, 8:30 AM
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Oct. 15, 2014, 6:42 AM
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Sep. 22, 2014, 1:35 PM
Sep. 11, 2014, 3:05 PM
- The convenience store channel performed well for soda drink and energy drink sellers in August, according to data from Wells Fargo.
- Packaged beverage sales rose 4% Y/Y during the period, a pace which has extended into Q4 and beats the overall volume growth seen in the U.S. market this year for the beverage industry.
- Related stocks: PepsiCo (NYSE:PEP), Coca-Cola (NYSE:KO), Monster Beverage (NASDAQ:MNST), Dr. Pepper Snapple (NYSE:DPS).
Sep. 8, 2014, 11:05 AM
Aug. 16, 2014, 8:25 AM
- So why didn't Coca-Cola (NYSE:KO) just go all the way and acquire all of Monster Beverage (NASDAQ:MNST) instead of stopping at an asset swap and a 16.7% stake?
- More than anything, "it's about protecting the [Coke] brand and the image" from a company that urges consumers to "unleash the beast" with drinks such as Assault and Khaos, said a person close to Coke.
- Coke figures it deals with enough controversy from those who blame sugary sodas for obesity and diabetes; it wants to keep at arm's length from the more serious public relations battles facing the energy drinks industry, including an FDA probe over deaths possibly linked to Monster.
- On the financial side, the deal involves a reasonable $2.1B cash up front, while a full acquisition would have required at least $12B based on Thursday's closing stock price - roughly equivalent to the amount of cash Coke had on hand at the end of July.
- Despite the cautious approach, Coke could still own Monster some day; a standstill agreement limits KO to increasing its stake to 25% over four years, but MNST's board can waive it at any time.
Aug. 15, 2014, 12:48 PM
Aug. 15, 2014, 9:13 AM
MNST vs. ETF Alternatives
Monster BeverageCorp through its subsidiaries markets and distributes energy drinks.It offers energy drinks including Monster Energy, Java Monster, Monster Rehab, NOS, Full Throttle Mother, Power Play and Ultra energy drinks.
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