Idea #5: HANS: Hansen, Leading Energy Drink Maker, Monster brand

Simple Investment Idea #5: HANS (Hansen): Leading Energy Drink Maker ('Monster' brand)

• TICKER: HANS
  
• SECTOR: Consumer Staples, Beverage, Energy Drink, Specialty Drinks
  
• GROWTH THEME: Hansen (HANS) is a specialty drink maker, and their Monster Brand Energy Drink is a leader. Generation Y (a large group) and the Youth, and global growth will help propel stock and industry forward.
  
• DEMOGRAPHICS: Wiley has a study of Energy Drink Demographics.
  
• MARKET CAP: $7.1B
  
• FORWARD PE: 22.73
  
• ESTIMATED 5 YEAR GROWTH: 14.5%
  
• FORWARD YIELD: 0%
  
• PEG+Y GROWTH: 1.56
  
• PERCENT ABOVE 50 DAY MOVING AVERAGE: 4.7%
  
• PERCENT ABOVE 200 DAY MOVING AVERAGE: 29%
  
• RELATED COMPANIES: Pepsi (PEP), Coca Cola (KO), Diageo (DEO)
  
• RELATED BRANDS: Red Bull (Austrian Red Bull GmbH), Rockstar
  

Stock Chart: PFE, Pfizer (June 15, 2007)

PFE, Pfizer, appears to be in the middle of an ascending right triangle, a bullish formation. The stock does not have the strength to break upper resistance. However, as the stock goes lower, at each stage, buyers support the stock at higher levels, creating higher lows. As the stock trades closer to the end of the triangle, buying pressure may be so strong, that the stock could breakout possibly on good volume.

Many technical buyers would like to buy the breakout above the triangle, ideally when the breakout is accompanied by good volume.

However, some could argue that the patient investor (who cares more about fundamentals than technicals or charts) can invest within the triangle. The justification of this is that a stock like Pfizer (PFE) pays a good dividend yield (currently at 4.30%). While waiting for the stock to breakout, the patient investor can reinvest dividends at lower prices.

For a real life example of a breakout off an ascending triangle, see Hansen Natural (HANS) example right here.

Here's a current day stock chart of Pfizer with the aid of the tools at StockCharts.com .

Stock Chart: Hansen Natural (HANS) has Broken Out! (June 15, 2007)

Hansen Natural ( HANS ) has just broken out of an ascending triangle on Good Volume. This is bullish!

Previously, HANS had formed an ascending right triangle with the hypotenuse increasing in slope from left to right. Ascending Triangles have a bullish bias. The stock has no strength to break past resistance. However, as the stock tries to go lower, there are buyers who start supporting the stock at higher levels, creating higher lows. Soon, all this buying pressure gets stored in the tip of the triangle, and the only thing a stock can do is Breakout upwards with Good Volume.

This is what is happening to HANS right now, and HANS has a bullish bias.