Buyback, Kickback, Blowback, Crash (MNST)

Old monsters don’t die… they just reincarnate as grotesque fad stocks.

—Old Man McAbby

Monster Beverage Corporation (NASDAQ:MNST) makes what they call “energy drinks”.

Sorry, guys.

More properly stated, they’re calorically ample, glucose-laden pseudo-potables.

They also claim that their ready-to-drink iced teas, juices, fruit beverages and sodas are “considered natural”.

Oh…?

You catch that?

And by whom, do you suppose they’re “considered” natural?

Why, by all those unsuspecting lemmings they sell to, of course!

G-d Forbid!

With the company selling products called Monster Energy Nitro, Monster Hydro Energy Water, Reign Inferno Thermogenic Fuel, and the like, how could anyone believe they’re actually doing their body a service?

Or that there’s anything “natural” here?

What the cheet, man?

Notably, Monster Beverage Corporation is headquartered in Corona, California.

Company earnings were announced on May 4^th, and beat on both top and bottom lines.

But there’s a bigger picture here, and were about to expose it.

For a potential 4900% gain!

In short, MNST won’t outperform the market, we say.

Here are her FUNDAMENTALS—

• P/E is 13, but…
• Forward P/E 33.17.  That amounts to a cut in value of nearly one quarter of the current market cap.
• There is no Dividend.
• Price to Book is an overly sugared 4.39.
• EPS FELL this year by 13.10%, and…
• Q/Q EPS were DOWN 4.90%.

Not much to bubble over here.

Have a look at the chart—

!אנא השם, הושיע נא

Many happy returns!

Matt McAbby

Follow @HughLOHaynew