August 28, 2007
– Comments (2)
Hansen (HANS) stock pitch by yours truly...
Good pitch. My wife has been a happy owner of this for a year. If I had to be critical, and it is a stretch, I don't like to see companies build up too much cash on the balance sheet -makes them do dumb things. No one ever complains about cash to equity ratios. I don't think Hansen is in danger of this yet, but at some point they should buy back stock or better pay a special dividend.
I'm betting that we'll see management make some acquisitions and/or develop some new products. Especially when you consider Anheuser-Busch and Pepsi are Hansen's primary distributors, management will need to find something to do, so to speak. There are several new products in the making, including a new Monster. We'll probably see a lot more of this in the future and management says they are staying open to possibly buying some companies as well.
Anyway, for now I think management will find good uses for cash. It will be interesting to see how they correlate this with the new distribution agreements and such.
And I'm glad you liked the pitch!