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poortorich

poortorich
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  • Coke chooses caution, sees too much risk in swallowing all of Monster [View news story]
    Having closely followed both Ko and MNST and being a shareholder of both I do believe that Ko wanted all of MNST. The management could say all they want about wanting to distance themselves from MNST's image. This sounds quite ridicoulous when they've just purchased 17% with the option to buy more.

    Here are my prediction over the next several years
    1) the earnings Ko gets from the brands acquired from MNST will be substantially lower tham the earnings MNST will get from the KO highway
    2) you will see an marked acceleration in MNST growth internationally. They will now be using the autobahn. MNST had a hard time expanding internationally not because of lack of demand but because of distribution problems
    3)within 10 years, if and when Rodney retires, you will hear an announcement that Ko will buy the rest of MNST at a higher premium.
    4)Pep will look into buying Rock Star, perhaps even Soda. They have to if they want to stay relevant in this duopoly. Red Bull is privately held. I doubt the family wants to be acquired.
    Aug 16 12:05 PM | Likes Like |Link to Comment
  • How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam [View article]
    In real estate, many property owners after fully depreciating the building look to exhange their property for another (1040 exchange). They want the benefit of more depreciation. They dont want to sell because they would be liable for the taxes on the depreciation. Essentially, thats another form of "float".
    Aug 15 09:33 PM | 3 Likes Like |Link to Comment
  • How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam [View article]

    Good article.
    All of us who have owned stocks long enough have "float" in the form of unrealized gains. As time goes on the possible tax hit becomes even larger. The tax hit can sometimes become more painful than a market crash.
    Aug 15 09:00 PM | 6 Likes Like |Link to Comment
  • Monster Beverage: Coca-Cola Transaction Supports Bull Case [View article]
    Its good for both KO and MNST.
    For KO, they get brands that have been a bit underappreciated. With the marketing power of KO, they will get a new lease on life.
    For MNST, they know how to expand the energy drink sector. MNST will have a free ride on the KO freeway now. This deal also eliminates a competitor in the energy drink market.


    "meaning KO values MNST at 18 billion ". I have a feeling KO wanted to buy the whole thing, but MNST is playing hard to get. In 10 years, KO will have to pay a much higher price in my opinion. Should have bought it when its market cap was only 400-500million.

    The question now is what will PEP do now that KO has a piece of GMCR and MNST. PEP may have to consider gulping down SODA? ROCK STAR? RED BULL?
    Aug 15 12:52 PM | 1 Like Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    Capt

    If youve followed mnst long enough you would realize KO was considering buying MNST. Then the whole lawsuit thing came about at which point KO backed out. As Long Term Value alluded to why in the world would you slam down 2 billion if you thought MNST would go out of business? Pehaps Ko wanted to buy the whole thing but MNST management resisted. Its hard to understand Rodney, the ceo sometimes during earnings conferenc call because he speaks too fast,but he aint no dummy. He knows he's got a good thing in MNSt and is not willingly to give it up so easily.
    Aug 14 06:57 PM | Likes Like |Link to Comment
  • 2 Key Tests For The True Dividend Growth Investor [View article]
    Patrick

    You gotta read man. Buy books and read read read.
    Aug 14 06:37 PM | 10 Likes Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    Hello Capt
    I could be wrong. But do you think energy drinks will get completely outlawed all around the world at once? Did you know that in the future, international growth will play a increasingly bigger role in growth? Did you know that the caffeine content is not always the same in every country? Did you know the other products MNST is giving up are very marginal products? What if MNST decreases the caffeine content just a little?Did you know that Red Bull essentially had one product before MNST came on the scene? Red Bull came on the scene about 30 years ago.
    If one is held prisoner to lawsuits and threat of lawsuits, one will miss out on many investment opportunities. The legal problems surrounding MNST allowed a great opportunity to buy more shares. In 10 years we will see the outcome of our investment thesis.
    Aug 14 06:31 PM | Likes Like |Link to Comment
  • Bill Ackman's Campaign Is A Gift To The Long-Term Herbalife Shareholder [View article]
    I meant to say the fear surrounding tobacco stock was several folds higher than what hlf is facing right now. Really, no comparison.
    Aug 14 06:19 PM | 5 Likes Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    Good news for several reasons
    1) essentially, mnst now has "protection" since any lawsuit, assault on its business is an assault on Ko
    2)Mnst can now truly utilize the Coke freeway. The internatiinal expansion will accelerate
    3)Ko is essentially admitting that they cannot displace MNST. If you cant beat them, then buy them
    4) MNST is giving up products that really did not fit its business
    5) this was not a buyout. As MNST grows even more, the take out price will be even higher. KO may have to pay a heftier premium in the future when it realizes just how good MNST will be to its business.
    Aug 14 06:12 PM | 1 Like Like |Link to Comment
  • 2 Key Tests For The True Dividend Growth Investor [View article]
    My advice to dividend investors. When you assemble your companies, make sure they are of high quality with an enduring moat. Once they are bought, promise yourself you will look at your portfolio only once every 7-10 years. By all means, however, count the monthly dividends
    Aug 14 04:46 PM | 2 Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Yes. Goog is a very powerful company. The problem is size. To expect a 10 bagger from its current size would be difficult.
    Aug 14 04:39 PM | 1 Like Like |Link to Comment
  • Bill Ackman's Campaign Is A Gift To The Long-Term Herbalife Shareholder [View article]
    Good article. I always look for 5-10 year time frame when i buy stocks. What happens in between is just noise. I initially bought HLF in the single digits (split adjusted) years before Akman came on the scene. I recently sold a good portion in the high 60's because frankly it was becoming too big of a portion of my portfolio. I still own enough shares to still be entertained though. I am not leveraged and do not own options and so im in no hurry.

    I remember the tobacco stocks. The fear was papable...nowwhere near the intensity hlf is experiencing right now. Fear surrounding a company is VERY good for long term returns.
    Aug 14 04:27 PM | 7 Likes Like |Link to Comment
  • Monster Beverage Corporation Beats Earnings By Sacrificing Future Sales [View article]
    I don't see why not since MNST does not have a monopoly on the energy market. Its Red Bull and MNST acting as a duopoly. If MNST does not get bought out, I see MNST growing very nicely internationally over the next 10 years.
    Aug 14 02:27 PM | Likes Like |Link to Comment
  • Monster Beverage Corporation Beats Earnings By Sacrificing Future Sales [View article]
    Yes. Getting bought out. Ko should have done it when the market cap of MNST (Also known as HANS a few years ago) was only 400-500 million. Now you are looking at a 12 billion dollar company. I wouldnt mind a buyout at 25 billion +
    Aug 14 12:42 PM | Likes Like |Link to Comment
  • Disney Won't Be Intimidated As Amazon Flexes Its Online Muscle [View article]
    Good article.

    Disney is one beast you don't want to mess with.
    Aug 11 08:27 PM | Likes Like |Link to Comment
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