Tuesday, March 9

Stay away from Monster Beverage’s stock

CNBC’s Jim Cramer reminded investors not to step into a battleground stock, a situation where passionate bears are in a standoff with passionate bulls and there’s no where to go.

“When you get a situation like Monster where a stock keeps getting mauled by the bears, but a couple of heroic analysts remain bullish, that’s not a fight you want to be involved in,” the “Mad Money” host said. “Believe me, there are lots of easier ways to make money.”

Shares of Monster Beverage have run more than 10 percent this year. That trails the S&P 500’s 13-plus percent gain, and the stock is nearly 5 percent under its price a year ago.

Credit Suisse and Morgan Stanley on Thursday offered dueling perspectives on the energy drink maker with the former putting faith in the company and the latter cutting numbers, Cramer noted.

“If the bulls at Credit Suisse turn out to be correct, well they’ll look like geniuses,” he said. “But there are very real worries here, which is why I am hesitant to stick my neck out on this one, especially with Monster selling at 24-times next year’s earnings estimates, much higher than the average stock. Not exactly a value play.”

Cramer’s full insight here

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