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$27.34 -1.76 (-6.05%)
10/7/2008 11:21 AM

Hansen Natural Corp (HANS)

CAPS Rating:
****

Develops, markets, sells & distributes alternative beverage category natural sodas, fruit juices, energy drinks, fruit juice smoothies & functional drinks, non-carbonated iced teas, lemonades, juice cocktails & children's multi-vitamin juice drinks.

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Avatar lepant (< 20) Submitted: 5/15/08 5:15 PM : Outperform Start Price: $29.97 HANS Score: 18.01

I enjoy this companies line of energy drinks known as Java Monster, and apparently so do many other people. The fact that in the most recent quarter HANS sold more of its coffee drinks than their standard energy drinks lead them to have lower margins. The fear on the street is that margins are going to continue to shrink. The way I see it is that the Java Monster line is a relatively new addition to their line-up whose success was greater then the company had envisioned, thus they ended up paying higher prices for the raw ingredients thus causing margin compression. I foresee them in the future being up to cut costs and ultimately return margins to roughly there previous levels. Therefore I view this "bad" quarter as an opportunity to enter a position at a significant discount to the companies true value.

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