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Stock Market & Financial Investment News

News Breaks
August 15, 2014
12:16 EDTPEP, KO, DPS, MNST, GMCR, SODAMonster surges as Coca-Cola takes 16.7% stake in company
Shares of beverage company Monster Beverage (MNST) are surging after Coca-Cola (KO) took a 16.7% stake in Monster and the companies announced a long-term strategic partnership and asset swap. WHAT'S NEW: Coca-Cola will pay $2.15B for a 16.7% stake in Monster Beverage Corp, the companies said. Under the terms of their agreement, Coca-Cola will add two directors to Monster's board. Coca-Cola will transfer ownership of its worldwide energy business including brands like NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless to Monster. Monster will transfer its non-energy business, which includes Hansenís Natural Sodas, Peace Tea, Hubertís Lemonade and Hansenís Juice Products to Coca-Cola. Coca-Cola will become Monster's preferred distribution partner globally, while Monster brands will be the only energy drinks distributed by Coca-Cola. At closing, Coke will make a net cash payment of $2.15B and transfer its worldwide energy business to Monster, and Monster will issue to Coke the shares of Monster common stock, transfer its non-energy business to Coke, and enter into expanded distribution arrangements. The transaction is expected to close late in 2014 or early in 2015. WHAT'S NOTABLE: On slides discussing the partnership, Monster said that it anticipates fiscal year 2013 pro forma operating income to be over $700M following the deal with Coke vs. $600M for "current Monster." Monster sees a pro forma second quarter cash balance of $2.6B vs. $0.8B for current Monster. ANALYST REACTION: Following the companies' announcement, Wells Fargo analyst Bonnie Herzog said she feels that the Coke/Monster deal is a good move for both firms. She expects the agreement to significantly quicken Monster's international division and believes that the company's market share could gross 4 to 5 times its current international sales within the next three years due to the deal. She feels that Coke gains increased access to the energy category. The firm maintains an Outperform rating on both the stocks. Stifel analyst Mark Astrachan perceives Monster's agreement with Coke as hugely positive since it builds international and U.S. revenue synergies while boosting EBITDA BY $95M next year. He keeps Monster's shares with a Buy rating and raises its price target to $94 from $75. CLSA upgraded Monster to Outperform from Underperform. PRICE ACTION: During afternoon, Monster is up $21.62 or 30.17% to $93.27 and Coca-Cola is up 58c or 1.46% to $40.76. OTHERS TO WATCH: Shares of SodaStream (SODA) are up relatively flat following the news. Dr. Pepper Snapple (DPS) is down 0.2% and PepsiCo (PEP) is down 0.25%. Shares of Keurig Green Mountain (GMCR) are down 1% since Coke took a 10% stake in the company on February 5.
News For MNST;KO;SODA;DPS;PEP;GMCR From The Last 14 Days
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July 7, 2015
08:56 EDTPEPPepsiCo volatility increases into Q2 and outlook
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05:54 EDTGMCRStocks with implied volatility movement; QIHU GMCR
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July 6, 2015
07:18 EDTGMCRKeurig Green Mountain price target lowered to $70 from $95 at SunTrust
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July 1, 2015
13:40 EDTPEPPepsiCo volatility increases into Q2 and outlook
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June 26, 2015
16:00 EDTKOOptions Update; June 26, 2015
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10:26 EDTMNSTMonster Beverage calls active
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07:51 EDTPEPPepsiCo volatility at 15 into Q2 and outlook
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June 25, 2015
19:34 EDTKOAirbus, Qualcomm, others invest $500M in OneWeb's global internet initiative
OneWeb announced it has raised $500M in funding from a number of companies, including Airbus (EADSY), Bharti, EchoStar's (SATS) Hughes, Intelsat (I), Qualcomm (QCOM), Coca-Cola (KO), Totalplay, and Virgin Group. OneWeb is engaged in developing satellite technologies to "beam" broadband internet to rural and underdeveloped locations, as well as to ships, planes, trains, and oil platforms. Bharti chairman Sunil Bharti Mittal will be joining Airbus Group CEO Tom Enders as well as Virgin's Richard Branson and Qualcomm's Paul Jacobs on the OneWeb board of directors. OneWeb also reiterated its June 15 announcement of its joint venture with Airbus to design and manufacture 900 microsatellites. "We are committed to giving our full industrial and space expertise to this mission," remarked Airbus' Tom Enders. "Intelsat has the worldís largest fleet of Ku Band geostationary satellites and our interoperability will enable pole-to-pole and urban canyon coverage with new services," said Intelsat. Note that both Facebook (FB) and Google (GOOG) are working on similar projects to facilitate global internet access. Reference Link
09:19 EDTGMCRKeurig Green Mountain price target lowered to $95 from $117 at BofA/Merrill
BofA/Merrill lowered Neutral rated Keurig Green Mountain's price target to $95 from $117 and lowered estimates to reflect 2016 spending and slower hot platform growth. The firm expects 2016 to be a significant investment year and lowered its hot brewer expectations due to a muted consumer reception for second generation brewers.
07:39 EDTKO, MNSTMonster Beverage legacy international sales can at least triple, says Stifel
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June 23, 2015
06:00 EDTGMCRKeurig Green Mountain implied volatility of 25 at lower end of index mean range
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