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Company name Monster Beverage Corp
Stock ticker MNST
Live stock price [stckqut]MNST[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $95.6
Target stock price (averages with growth) $117.02
Target stock price (averages with no growth) $75.65
Target stock price (manual assumptions) $88.38

The following company description is from Google Finance: http://www.google.com/finance?q=mnst

Monster Beverage Corporation, formerly Hansen Natural Corporation is a holding company. The Company develops, markets, sells and distributes alternative beverage. alternative beverage category combines non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (flavored, unflavored and enhanced) with new age beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages. It has two reportable segments, namely Direct Store Delivery (DSD), whose principal products comprise energy drinks, and Warehouse (Warehouse), whose principal products comprise juice-based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily directly to retailers.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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As I talk to people about the best techniques to invest, I am disappointed at the understanding that many people have about finance. Many of these people are younger and they simply did not understand the realities that their parents were dealing with in their daily lives. Maybe the parents thought that education of their children was up to the local school system. While I don’t want to condemn most school systems, it is not likely that they are the best at educating young people on markets and finance.

It also could be that the individual parents may have felt inadequate to discuss the issues. I assure you, if you care enough about finance and the stock market that you regularly read this site, you are well on your way to give your children a jump start!

I recently came upon an article titled, “14 Secrets Every Parent Should Know Before Talking To Their Kids About Money” on the site Man Vs Debt. I am not going to copy the entire article here but the 14 points are below.
 

  1. You can’t be a hypocrite.
  2. Treat them like adults.
  3. Know when to shut up.
  4. Tell them why.
  5. Stop chasing them out of the room.
  6. Let them watch you negotiate (and fight “nicely” over money).
  7. Show them the checkbooks.
  8. Be humble with the good.
  9. Be honest with the bad.
  10. Make them feel like a member of the team.
  11. Teach them concrete tips, not vague clichés.
  12. Help them get started.
  13. Let them know it’s OK to screw up.
  14. Let go.

 
I think the most important thing to remember in this entire exercise is to communicate to your children. This way they learn from your learning and your mistakes. You want your children to have advantages that you did not have – teach them about money so that they can live a stress free life. If you really want to help them, I suggest that you give them a copy of my book, The Confident Investor.

You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.