Monday, July 03, 2006


Today I am looking to take a short position in HANS. The price movement is showing a fade play i.e the big money is trying to take price back up to 52 week high around $202 and sell off the stock. There was plenty of window dressing on Friday end of close with HANS jumping $5 bucks around 3.55pm with large blocks being traded. Money managers trying to improve the look of their portfolios by acting as if they held the best performing stocks of the quarter. The increases in price over the last two weeks, has come on relatively lower volume and todays volume is not impressive, in comparison to the volume last time around when HANS headed to $200. Added to this, is a stock that is trading at 65x trailing earnings which is extremely high, for a $4.5 billion plus market capitalized company which sells soft and energy drinks - infact one energy drink, Monster which seems to have the market in a spin. Competition is fierce and energy drinks for the most part are a fad which can go either way. Monster may be hot today but, there are no guarantee it will be hot 6 months from now and with ever changing consumer tastes, a one trick pony such as HANS is way overpriced especially taking into account that the markets are setting up for a further drop to the downside.

1 comment:

Anonymous said...

Psst, HANS is not done running. Look closely, but Monster has already overtaken RB in Phoenix, Southern California, and markets in Texas. What's next? On-premise baby. 8 oz here we come. Watch out for the Monster. My recommendation: Long baby long. Haaaaaaaaaaaaaaaaaaaaaaaaaa.