Joe TerranovaMonster Beverage CorpMNSTBUYJun 09, 2023

They have pricing power, are a consumer staple name, are executing, and trading at an all-time high.

Up 19% this year and huge gains since inception. Is going global. 

A great company, but the 44x PE is too high. He's watching for shares to fall 50%. MNST is losing market share in some markets to Red Bull. Historically, MNST is one of the best performers ever on the S&P. Generally, he buys companies that generate at least 20% rate of return, the PE is below 20x, and earnings grow 15-20%.

One of the best performing stocks since 1990 and still worth owning.

Excellent business - very high quality earnings. Nature of product is very durable - drinking fluids not going away. Recent share price weakness, a good time to invest, but would recommend investing on further weakness. Multiple still a little high - despite quality of company. 

They reported weak numbers this week, missing earnings and revenues.

He would add more about $52, but doubts it will return there. They're growing overseas--their future. If they can handle their input costs, they will have great upside. A fine summer beverage.

It is in an attractive space. It has 60% margins in the domestic and North American side but 34% in the International side where sales are ramping up. It is getting used to running the overseas business so there is great upside potential. Had a recent stock split. A beginning position at $52 would have limited downside.     Buy 17  Hold 9  Sell 1

(A Top Pick Aug 21/15. Up 6.68%.) Coke (KO-N) has a 20% stake, and that ultimately opened up international distribution in a big way. Also, pulled in some margin accretive aspects of the business, such as concentrates and syrups. Thinks this ultimately become part of Coca-Cola.

(A Top Pick Dec 22/15. Down 12.48%.) As they build out their Coke international distribution channel, the volumes will come through. There is a lot of lumpiness associated with that right now. The nice thing is that they are gaining share of a growing pie and have great free cash flow. It just needs a little bit of time. (See Top Picks.)

(A Top Pick Nov 17/15. Down 11.51%.) This has been a little tough, and he had warned that it would be choppy. The reason for choppiness is the Coca-Cola (KO-N) deal. They are now tapping into this enormous network. They did an acquisition which will be accretive to them. Feels there is still lots of upside.

This is a different type of a business from what he would invest in. He owns Coke and it owns a fair chunk. Monster has strategic assets and it could be the catalyst for Coke taking it out.

The support level is around $135, and you don’t want to see that break. Chart shows 3 attempts to move up with a return to the neck line, which is a little bit dangerous at this point. Still finding support at around $135, but if you see it break that, you don’t want to be entering this stock.

(Top Pick Oct 6/15, Up 3.81%) For anyone working tough shifts, monster beverage helps. It is a growing share of a growing market. They have now opened up the Coke market and are rolling out the distribution of monster beverage round the world.