I did a minor report on what I thought of Hansen Foods Co. (HANS @ $41.52) about a year ago. Many people search HANS and find my blog and read it so I thought I’d post again on the Monster Energy drink trend innovator. First Monster energy drinks are still a hit. My rack on the ship is full of the Monster Kaos fruit energy drink including my favorite Red Bull. I thought it was a super buy at around $33 trending up and it was. You would of made at least +17pts or almost 40% ROI. Now HANS @ $41.52 still looks like a great growth play on a winning company that wins over youth and sports activities, but although it has a favorable PEG Ratio score of .80 well below a value considered stock of 1.00 its trend is definitely moving down with the market so I wouldn’t say buy up just quite yet until the market has clearly bottomed out. Somebody wrote on a stock forum “not to catch a falling knife when falling” a teacher taught me that too. At times I’ve tried to catch that falling knife only to lose thousands of dollars and have a miserable weekend. HANS’s F/ PE is around 20 not as high as its PE of 32. I think it could fall somewhat more.
Recently I’ve been having debates over where the market is going to go. To tell anyone I have no clue. I’m just watching it as it comes, but what I do see is major support wicks on the bearish and bullish sides depending on what stocks I’ve looked at. For most I see spinners meaning indecisiveness/uncertainty. For the most park the major peak came in October 07′ and now a second smaller peak has occured just this week and stocks continuted to fall afterwards meaning the stock market in general should move much lower again before created a “W” type correction. If anything I’ve learned from any teacher is that the next 2 years should be all down with a few bullish runs, but small. So is HANS a BUY? Maybe since it isn’t a tech stock it could move up with positive news and performing earnings reports, but if it is like Apple (AAPL @ $166) that falls or goes up to just about any major news that comes out then it might be falling back to the $30’s once again which in a year or two would be a super BUY. I really consider looking at charts and seeing where the DJIA and NAS are going before buying it even if you are a big fan of the energy drink and company.
Until the big exchanges and averages start changing direction I would play PUTS on just about anything. There are some stock splits coming up so I might be playing CALLS on these two which are BWA and DE.