Growth: A Monster, A Lemon And A Bean
By Ed Pandos:Three companies that have been the darling of the momentum trade are Monster Beverage (MNST), lululemon (LULU) and Starbucks (SBUX). The reasons for these three being aggressively bought on each pull back is different for each company but all three presents a great growth opportunity.
Monster Beverage is more than an energy drink company. Besides the action sport drinks that it produces it also has a powerful 35-year old Southern California Natural Drink juggernaut in Hansen Natural Juices. There are two stories with Monster Beverage. First, Monster has been the talk of a possible takeover target. Second, and the reason a larger company would want to take it over is the potential of overwhelming growth in expanding its brands.Fundamentally, Monster is a profitable company. With a 53% Gross Profit Margin Monster can bring a great deal of free cash flow to a larger company's balance sheet. TheComplete Story »