Question:
My son was recently gifted shares of Monster Beverage for his birthday. I wanted to get your opinion on this stock. Whatever we hold, we’ll probably want to sell in about a year for his education expenses.
Answer:
As you will need the money within a year, we advise you to sell the stock now. We believe that any money needed within the next 10 years should not be in the stock market. No matter how strong a company might be, the markets can be volatile, and you could lose your principal. We believe the safer option is to place the money in a fixed-income investment.
However, if you did not need the money within the next 10 years, Monster Beverage Corp. (NASDAQ: MNST) could be a stock worth holding. The company develops, markets, sells and distributes caffeine-enhanced, vitamin and fruit-infused beverages. In our opinion, the stock is a little elevated right now. If you do decide to hold the investment, know that it is a bit pricey.
Question:
I’ve owned McKesson since mid 2010 when it was trading around $70. Is this one worth hanging on to? If not, what would you suggest in its place?
Answer:
We have kept our eye on McKesson Corp. (NYSE: MCK) for a while. The company delivers pharmaceuticals, medical supplies and health care information technologies. We recommend holding McKesson; however, you should understand that the company is a low margin business. As such, it is also low risk. The company also pays a relatively low dividend at 1%.
Question:
I’ve owned Harris Corp for nearly 15 years. I started buying shares when I was first interning there. I rode the stocks’ increase 2005-2008 selling some when it was three times what I paid for it. I still have about $6,000 in the company. What do you think of the company’s prospects considering its government communications segment? How much will they be hurt by the defense cuts we assume are coming?
Answer:
Harris Corp. (NYSE: HRS) is an international communications and information technology company. Harris sells niche communication systems for government and defense operations. This is not an area we expect to see defense cuts. In our opinion, the stock is cheap as it has a P/E below 10. It is a good company that is well-priced and has potential going forward with long-term growth forecasted at 9.5% a year. The company also pays a 3.3% dividend, which is relatively safe considering the company’s strong financials. At its current price, we would recommend buying. If you own the stock, we recommend holding.
At Henssler Financial we believe you should Live Ready. If you have questions regarding your holdings, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
