Hansen Company (HANS @ $43) just again gained 100% profit on the stock from $20 to $40 on it’s climb into its May 7th earnings statement. 40% profit isn’t bad in this economy. Being on a ship of 160 souls Monster Energy Drink and Redbull are #1 solution to exhausting long days at work and early morning wakeups. A call option profit would have been around 2000% on this stock holding the call for 3 months (on a 6 month in the money call option). I don’t think Hansen’s Monster energy drink will last forever unless the teenagers buying it now are so addicted and “memorized” that they drink it into adulthood then I could see it becoming like an “Apple” product with trends holding and gaining its customer base (new teenagers influenced by marketing campaigns such as the X Games). Personally I think the Monster drink is too sweet. I like my energy drinks with a kick or off taste that isn’t necessarily bad, but distinctful. My energy drink company for taste is Redbull. I buy around 4-6 12 pack cases before I go on any patrol. My co-workers end up buying them off of me for the average price of $3 so I end up making a +1.50 profit. I work late night watches so some strong sugar caffine rushes are great.
Hansen’s (HANS) company trend line is near almost perfect going up since Feb (the hardest low in the past 2 years of $20). I was telling everyone to buy at these prices (Even though I couldn’t purchase options myself because I’ve been in focus not to trade for 1 whole year to gain some discipline, but what a year NOT to trade!). I think the price is still low at $43 compared to PE, PEG 1.53, and still at a decent brokerage buy recommendation of 2.5 (under 3). The stock shows it still has room to grow and very loyal customers that consume the drink even at $2-3 bucks a disgusting can. The trend I also might at is only at a 35-45* degree angle so its mild in comparison to a stock that is moving up sharply (the faster shaper up the faster sharper a stock comes down (example – Taser (TASR)).
To see a post I wrote about Hansen Company (HANS) 3 years ago when it went from $20 to $60 check it out here
for more posts and to see my new website go to http://beginner-investor.com/investor-blog/