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Monster Beverage Corporation Message Board

  • markfk1965 markfk1965 Aug 6, 2009 8:45 PM Flag

    6% growth does not support a PE of 25

    Not a bad Qtr but the 6% growth does not support a PE of 25. We will see lower soon after the big players move it up to sell it off.

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    • US ED market had decreased 1.7% YOY per CC. Bad sign number one, which is reflected in YOY unit case sales increase of ONLY 1.8%. What does the future hold, either price discounts or increased advertising costs, both which negatively effective the bottom line. It takes more cash to steal sales away from competitors than through increasing your distribution channels. Even Rodney admits in CC that USA is a mature market.

      Second, stock SP s/b based upon the future not past. Some think that overseas sales will be suffient to generate overall sales growth. This is were I differ than the BULLS. I beleive that oversea says will be negated by decreased domestic sales.

      Third, ounce the growth rate in sales and EPS appraoches zero you will see the PE contract like it did for NTRI and the SP sink.

      PS: I am not short HANS and I did know about the one-time charges. What matters about a SP is tommorrow not today.

      My agrument is a notshull is that sales growth is slowing and will continue and when this happen the justifiable PE will contract rapidly.

      No one has yet to dispute that there was 1.8% unit volume growth, and in the long run this is what sales & EPS growth

      Sir, I think you are the one that needs to upgrade your due dilligence skills and stop relying on GS recommendations.

    • Ok you name a few other companies that any type of top line growth from 2008 to 2009?

      I'm sure 95% of the S&P 500 had negative growth in sales from 2008 to 2009. That is still impressive in this type of economy, especially when you are gaining market share from all your competitors.

      You want to beat this company up and say the product is not good, energy drinks are a fad, overpriced, too much competion then fine, but don't try to justify a "High PE" when the damn stock has one of the lowest PE's for a company that has grown the top line, bottom line and cash at hand year over year.

      Why don't you start trashing the company because it has $8 million in debt?

      Face it you shorted this stock in the low 30's thinking it had a high PE of 24 because thats what Yahoo had for the trailing 4 quarters. While that was true you decided not to due your due diligence and figuire out that the 3 quarter had a one time charge due to changing distributors.

      You lose! Good day sir!

      See you at $45

    • Are you an expert on stock valuations? The market decides. Another case of fighting the tape.

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