Diamonds and Dogs
9/12/12Monster Mash Before Halloween?
Monster Beverage Corporation (MNST)
Monster Beverage is scaring investors away today, down 9.90% at $50.78. The energy drink company saw its shares crash after two U.S. Senators called for greater regulation of energy beverages. Senators Richard Durbin of Illinois and Richard Blumenthal of Connecticut, wrote the U.S. Food and Drug Administration urging clarity on whether energy drinks qualify as dietary supplements, as they are currently marketed, or beverages, which are subject to greater regulatory scrutiny. The Senators said that since the FDA currently regulates caffeine levels in soft drinks, the same should be done for the energy drinks. If the FDA agrees with the Senators, it would cause Monster to offer energy drinks with the same level of caffeine as a normal soda. Monster is trading at levels last seen in January.
Monster Worldwide Inc. (MWW)
While one Monster is scaring investors away, another Monster is intriguing investors. Monster Worldwide, an online job placement company, is up 10.62% at $8.75. The company saw its shares explode after rumors of a possible acquisition. The rumor is that Microsoft, Oracle, News Corp, and Salesforce.com are all playing with the idea of a possible acquisition. Monster CEO Salvatore Iannuzzi said on that he would consider a sale of the company, and has hired Stone Key Partners and Bank of America to help review its options. Shares of the company traded more the double their average volume, and are well off their 52-week low of $5.72.