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Monster Beverage on Fire

David Becker
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Monster (NASDAQ:MNST) is bucking the trend in the beverage space, as its stock price continues to defy odds by moving higher despite the recent market selloff. Monster Beverage Corp. through its subsidiaries, develops, markets, sells, and distributes alternative beverage category beverages in the United States and internationally.

Prices accelerated higher after Goldman Sachs raised Monster Beverage estimates ahead of the January 7 investor meeting given re-accelerating sales trends and likely upbeat commentary around pipeline innovation. The firm expects shares to outperform in 1H 2014 and raised its price target to $79 from $70.

The 52-week range for the stock price is $ 45.38 – $68.33, and it hit a new fresh 52-week high in last week. Earning increased 13% quarter over quarter and the three year growth rate of earnings is 20%. Sales increased 9% quarter over quarter and the 3-year growth rate of sales increased 21%. The profit margin for the company is 26.9% and the price to earnings ratio for the company is a hearty 35.

Recent insider sales of the company should make investors cautious. Vice Chairman and President Hilton H. Schlosberg sold 200,000 shares for $67.40, generating $13.48 million from the sale. Chairman and CEO Rodney C. Sacks sold 200,000 shares for $67.39, generating $13.48 million from the sale.

The technical picture is shows a stock that is moving higher on strong momentum. The MACD continues to print in positive territory with an upward sloping trajectory. The stock is trading above both the 20-day and 50-day moving average showing that a medium term uptrend is in place.

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