MNST, which reported an outstanding quarter only a few days ago, has popped since. I however, along with Mark Maheney (internet analyst at Citi), believe the run is not nearly done.
Maheney is currently looking for the stock to run to $51 in the intermediate term with little downside. "The market essentially is discounting a U.S. jobs recession next year and (assuming) that Monster's North American revenues will decline 20%," Mahaney says. He argues that such a scenario is too dire, and that Wall Street isn't giving Monster enough credit for the ongoing shift in help-wanted advertising to the Internet and the strength of its international franchise.
Looking at the chart, I definately believe the run he projects fundamentally is feasible techincally. If you drew a trendline down from the last two tops, it would project resistance for MNST at $50. The stock is currently at 39.50 and is turning up from a solidly built bottom.
I would look to buy the stock on any sort of dip (like today) and build a position right here right now.
The upsides too much, the downside is too little.
CM
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