Monster Beverage: Can The Stock Move Higher With The Threat Of Government Regulation?
- Monster Beverage stock has appreciated 25% since I initiated coverage on the back of increasing sales and Coca-Cola's 16.7% stake in the company.
- The stock has strong bull and bear theses but to me the primary risk with the stock is government regulation.
- In New York State, among others, there have been various policy issues which could negatively impact Monster's sales to its primary customer base.
- Monster Beverage has just filed with the Supreme Court of New York State an important petition to have the subpoenas that have been levied against the company thrown out.
- With Coca-Cola's support, international expansion and Monster's popularity with youth, sales should increase dramatically and help move the stock higher.