Hansen Natural Corp  (HANS) Trade Now »     Rate HANS  -  Discuss HANS  -  Add to Watch List        

Filed under: Coca-Cola (KO), PepsiCo (PEP), Hansen Natural (HANS), Stocks to Buy

Beverage stocks are often considered "defensive" in nature. After all, no matter what troubles beset the economy, people continue to eat and drink.

Granted, a recessionary environment might impact purveyors of expensive champagnes. But our focus here is on everyday canned sodas and moderately-priced beer and wine.

Of course, no report on beverages would be complete without the two giants of the field -- Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP).

Chuck Carlson, editor of The DRIP Investor looks at Pepsi and sugg

Hansen Natural (HANS) is one of the best stock stories of the past 10 years. At the beginning of September 2003, HANS stock traded at a split adjusted $0.75 per share. Today, the stock trades at about $28. That's an annualized return of 106% per year! With a $10,000 investment in 2003, you would be sitting on stock worth about $373,000 today! Even more amazing is that, at this $28 price, the stock is cheap enough to show up in the Magic Formula Investing screen. If you would have sold that investment when the stock topped out at near $68 in October of 2007, the investment would have earned

Yesterday Hansen was smacked down to $25, so I thought I'd take a look into it and see if there is good reason for the drop. The stock is at a new 52 week low and it actually hasn't been at these levels since 2006. I already own a bundle of Hansen stock, but an opportunity is an opportunity and I'm willing to increase my position if one is presented.

First, let's do a quick summary of the company's 1Q 2008 results. Net sales increased 27.9% to $212.2 million, net income increased 42.6% to $28.8 million ($0.29 per share) from $20.2 million ($0.21 per share) in 1Q 2007. The Monster brand remai

On May 7, Hansen Natural (HANS) reported its 1Q 2008 results (see conference call transcript):

• Gross sales up 28.4% to $244 million from $190.1 million in 1Q 2007
• Net sales up 27.9% to $212.2 million from $165.9 million in 1Q 2007
• Cost of sales $107.46 million from $80.22 million in 1Q 2007
• Gross profit margin 49.4% from 51.6% in 1Q 2007
• Operating income up 34.2% to $42.8 million from $31.9 million in 1Q 2007
• Net income up 42.6% to $28.8 million ($0.29 per share) from $20.2 million ($0.21 per share) in 1Q 2007
• Profit margin 13.58% from 12.18% in 1Q 2007
• Diluted share count 99,007,000
• Cash and short

Hansen Natural (HANS) is giving back the last month’s gains today after reporting higher than expected sales and lower than expected margins. Both were explained by customers stocking up ahead of a price increase. Count on the same thing happening to Hershey’s (HSY) when they report a March quarter enhanced by customer stock-ups and an early Easter.

While it’s true that the sales were boosted by robbing sales from next quarter, that is a short term issue. I said last month that “Hansen should be able to maintain its current free cash flow yield as long as the company keeps growing

When Hansen Natural (hans) reported it's sketchy "preliminary" fourth quarter results on February 12, it only gave sales and other metrics so analysts could back into an earnings number. The company blamed the limited results on an options probe. Analysts had been expecting 27 cents per share, and based on reports after the release, that's pretty much what analysts calculated the company did.

Now hear this: Based on a 10-K filed late today, it appears the analysts missed the mark -- and not by a small amount. As it turns out, fourth quarter earnings per share were just 23 cents