Tomahawk, WI 08/19/2014 (Basicsmedia) – The Coca-Cola Company (NYSE:KO) decision to buy 16.7% stake in energy-drink giant, Monster Beverage Corp (NASDAQ:MNST), looks to have worked the magic, as the later surged by highs of 30% on Friday trading session. The surge in the market comes a month barely, after ‘Mad Money’ host, Jim Cramer, on CNBC recommended the stock as well as stating it was a possible take-over. The $2.15 billion business will give Coca-Colas access to Monster’s non-energy drink business as well as entering into an expanded distribution partnership.
“About a month ago I recommended this Monster Beverage Corp (NASDAQ:MNST), MNST, the energy drink company I said unappreciated growth-stock was a possible takeover candidate. Sure enough, last Thursday night we learnt that Coca-Cola Company (NYSE:KO) is making a big strategic partnership with Monster. Which includes buying a 16.7% stake in the company,” said Mr. Cramer.
Cramer advises on not selling Monster’s stock at the current market conditions reiterating that the company still has an upside and looks set to surge even further, going forward. The ‘Mad Money’ host also rates the stock as a buy at the current market levels despite the fact that it surged by 30% on Friday. Cramer positive ratings on Monster comes at the back of the company being ranked number one in the energy-drinks segment in the U.S and number two in the whole world, behind Red bull.
“ I don’t think you should sell all your positions by any means, and if you don’t own any monster then, I believe this stock is still worth buying because I bet it’s still has some interesting upsides.,” said Mr. Cramer.
The energy drink segment remains the fastest growing segment in the world, growing faster than the carbonated soda segment. Misconception about energy drinks have already been washed’ down the drain, and many people are starting to embrace them, raising the prospects of the segment growing even further.
Cramer expects Monster to continue soaring in the market especially after Coca-Cola Company (NYSE:KO) made a similar investment in Keurig Green Mountain Inc. (NASDAQ:GMCR) in February that resulted in the latter’s stock surging by 26%.