Monster Beverage Corp (MNST-Q)

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).

(A Top Pick Oct 6/15. Up 9.6%.) They sold off and reset expectations. With Coca-Cola (KO-N) taking about a 20% stake, all of a sudden they can manage a global distribution of Coke. That opens up enormous scope. In 2016, they are looking for distribution into China and Russia. They are growing 30% a year.

(Top Pick Aug 21/15, Down 2.97%) It is a strong growth market. They are going to leverage the COKE-Q distribution network. It is a great entry point. Coke has a 20% stake now and he thinks eventually they will take out the rest of it. It is a pure play on the energy drink segment. Red Bull is a private company and is the leading brand whereas this one is the way you can play it as an investment. Everything is lining up. When you see what they can do with the global distribution network of COKE-N, that will be the next leg up.

Energy Drink maker. Growth market, dominant market share, Coke a year ago took a stake in it of 17 billion, which has just recently closed. They are cash rich, with lots of capital action coming. You are getting both a revenue line, and a share buy back which is great. Feels that it has secular growth behind it. Right now, as an individual he wouldn't invest, and would let the market shake out first.

If you own, you have made some good money, so he would take some profits off the table and hang onto some just in case it keeps going. This is pretty stretched in terms of valuation. Trading at 40X forward PE. It does have a long-term growth rate in the mid to high teens, which is very good, but it still gives it a peg ratio of 2.2.

A type of name that doesn’t show up in his systems too often. Trading at over 40X forward PE with a growth rate of 15%-20%, but that still puts the PEG ratio over 2X. It does have that growth, but you are paying up for that growth quite a bit. Has moved up because earnings have been decent, but also there is still a possibility that Coke (KO-N) takes a bigger piece of the pie. This is not one that he would add in his portfolio.