Monster Beverage Corp. (NASDAQ:MNST)

CAPS Rating: 3 out of 5

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.

Recs

3
Player Avatar TMFJLo (33.35) Submitted: 1/18/2013 5:32:21 PM : Underperform Start Price: $49.33 MNST Score: -1.49

A new government survey suggests that emergency room visits caused by energy drink overconsumption have doubled from 2007 to 2011 alone. The Substance Abuse and Mental Health Services Administration links large amounts of caffeine, like that found in energy drinks, to insomnia, nervousness, headache, fast heartbeat, and even seizures.

More than 90% of MNST's products are tagged as energy drinks. It owns 40% of energy drinks' $19 billion market share and sales and profits have shot up in recent years.

Call me contrarian, read my full bearish take here: http://bit.ly/XK4fgH

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Member Avatar XMFCinco (31.53) Submitted: 2/27/2013 12:49:31 AM
Recs: 1

Doubled from 1 to 2?

I'm sorry but starbucks is much more caffinated than Monster.

When I read these kinds of regulatory reports I sometimes want to meet the people who advocate these sorts of regulations. I assume they genuinely believe they are making the world a better place, and I think they're making it worse, but I still think it would be intriguing.

I might analogize energy drinks to OTC anti-inflamatories (advil). They make you feel good but if you have too much it might be bad for you, and every now and again there's a widely publicized story about someone who died from them. You could try to regulate these things, but in the end a life lived in constant fear of dying from some incredibly improbable cause isn't really worth living, and I think we'll all get over ourselves soon.

That being said, unwarranted fear and bad press can still be bad for a company. Sucks that it had to be Monster and not Red Bull because I think Monster is a better company that makes better tasting drinks.

Member Avatar beefangusbeef (76.52) Submitted: 3/5/2013 9:49:50 AM
Recs: 1

Ridiculous. More propaganda from the childish and worrisome. People looking to create the utopia nanny state. Although, this hype will have an effect on MNST. Unfortunate, because they have a great product and an awesome company.

This just in, excess candy tied to obesity and death. Quick everyone, torches and pitchforks to the Hershey factory!

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