Quick Win

Monster Beverage Corporation

On April 26th, 2016, The I Know First algorithm gave a bullish signal of 39.93 for the ticker MNST  (Monster Corporation), which had a predictability indicator of 0.24 In accordance with the algorithm’s prediction, MNST spiked 22.56% in the following two weeks.

Monster Corporation is a beverage company that manufactures energy drinks, natural soft drinks, and fruit drinks including Monster Energy, Hansen’s Natural Soda, Hansen’s Energy, Hansen’s Junior Juice, Hubert’s Lemonade, Peace Tea, and Blue Sky.

On April 29th, the Energy drink Giant released its Q1 earnings results and largely beat expectations. Indeed, sales growth reached 16%, and profitability jumped a 50% to $166 million.

CEO Rodney Sacks said the agreement is also helping Monster penetration in the key U.S. market. “In the United States, the Coca-Cola bottlers have expanded the number of outlets in which Monster Energy drinks are available, and we are seeing improvements in our levels of distribution,” he said in a press release.

Also, Monster announced plans to use a big chunk of its growing cash hoard to buy back its own stock. Management intends to purchase up to $2 billion of its shares in a Dutch Auction process in May. Investors welcomed the news very well, which, together with the positive trends, indicate solid results ahead for this growing company.