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Energizing Hansen Natural - Barrons Online's Weekday Trader (37.08 )
Barron's Online reports investors in Hansen Natural turned fickle toward the No. 2 energy-drink co in last year's second half. But new growth initiatives could put some fizz back into the shares in 2007. Although the stock has bounced back somewhat, there is still upside potential of at least 20%, as Hansen starts to reap the benefits of a deal under which brewer Anheuser-Busch (BUD) will distribute its Monster Energy Drink, potentially providing deeper mkt penetration. Hansen also should benefit from new-product introductions, following a pause in its pipeline last year. In addition, the co is likely to emulate energy-drink leader Red Bull's recent decision to boost prices. Some speculate that the Anheuser relationship ultimately could lead to the St. Louis brewing giant to bid for the co. The beauty of Hansen's business model is that the co doesn't own any manufacturing facilities or make its own drinks. Instead, it relies on a network of producers and distributors with more efficient economies of scale to make, package and sell its products.

U.S. Beverages: Not expecting big surprises during earnings season@JPMS JP Morgan believes KO is the most likely company to report a positive earnings surprise. They believe CCE could miss but notes 2007 guidance is more important. The firm is above the street on BUD and sees HANS as their top pick.

# posted by Broker A @ 8:32 AM