Diamonds and Dogs
Monster Beverage (MNST) is having a monster day up 13% after beating earnings estimates. The famous energy drink found in almost every convenience store, gas station, college campus, and everywhere else reported their strongest year-over-year sales growth since the summer of 2012. Part of the sales surge was due to a pre-announced plan to raise the prices on some of its most popular drinks at the end of August, motivating a few customers to stock up on reserves at the lower price adding roughly $11 million in extra sales in the third quarter. Monster Beverage is also in the early stages of integrating into Coke's international bottling network which should boost sales going forward. Things are looking up for Monster.
Three suits for the price of one may be just the start for today's dog, Men's Wearhouse (MW). The stock is plunging over 43% to a new 52 week low following disappointing earnings. The main culprit for the lousy results is due to the $1.8 billion merger with Jos. A Banks this summer. The merger has not worked as Men's Wearhouse now concedes that sales from Jos. A. Bank will decline 20%to 25% next quarter as it tries to lower its dependence on aggressive promotions like "buy one, get-three-free" events, suggesting that a significant sales improvement isn't happening anytime soon. With the stock down 66% since the June highs, let's hope the worst is over for the clothing retailer.