Whitney Tilson in his email discusses Citron’s short report on Monster Beverage Corporation (MNST); He also attaches JHL Capital’s presentation on Conglomerate Boom 2.0 – Valeant (VRX).
Whitney Tilson on Andrew Left’s short report on Monster Beverage Corporation (MNST)
1) At first glance, trading at 9.3x revs, 48x trailing earnings and sporting a huge $28B market cap, it sure looks like Andrew Left is onto something with his short report on MNST released today (attached)… Here’s the summary from Activist Shorts:
On 1-29-2016, Citron Research said that Monster Beverage Corporation was not a product company with a broad suite of unique products but was instead a marketing company that was trying to differentiate its brand among many competitors. Citron also noted that the company’s market valuation was up 500%, while its revenues were up 90%, but Citron said that the company was neither a technology company nor “virally scalable.” Citron also said that Coca Cola’s investment eliminated the possibility of an eventual purchase, and it added that Monster’s entry into China committed the company to an expensive brand-building exercise at lower margins. Citron questioned whether Monster would have a “Chipotle moment,” and it noted increasing risks shadowing the energy drink market, including government regulation and health concerns. Citron set a price target of $80, or about 42% downside.
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See full citron short report on MSNT below:
Whitney Tilson: Conglomerate Boom 2.0: A Stable Platform?
2) Attached is a presentation JHL Capital Group made at the Grant’s conference last October entitled: Conglomerate Boom 2.0: A Stable Platform? and below is an article about it.
A dark narrative about the stock market is starting to take hold on Wall Street
- Linette Lopez
- 3, 2015, 11:49 AM
See full JHL Capital's presentation on Conglomerate Boom 2.0 below.