Joe TerranovaMonster Beverage CorpMNSTBUYJun 09, 2023

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.

Valuation is quite high. Also, with the health side of things, the energy drinks and its negative publicity could affect a company like this. If it had a substantial pullback, he would be more keen on it.

(A Top Pick Aug 21/15. Up 5.15%.) Have $3 billion on the balance sheet with no debt. Just now launching into international distribution with Coca-Cola (KO-N).