The Good, the Bad, and the Ugly of Coca-Cola's New Stake in Monster Beverage

By now you've likely heard that Coca-Cola (NYSE: KO  ) is coughing up $2.15 billion for a nearly 17% stake in energy drink maker Monster Beverage (NASDAQ: MNST  ) . The news sent both stocks higher last week, with Monster climbing more than 30% to trade around $93 a share on Friday. While the deal creates a unique opportunity for both Coca-Cola and Monster, it also comes with some added risk. Let's take a closer look to uncover the good, the bad, and the ugly of the soda giant's latest transaction.

Source: The Motley Fool.

Opportunities abound
Faced with slowing sales of soda in the U.S., Coke is looking to fast-growing beverage categories such as single-serve and energy libations for future growth. The energy drink market reportedly grew 4% in 2013, compared to a 3% decline in carbonated beverage sales over the same period, according to an article in Adweek..

Therefore, what better way to spark growth than by taking a stake in Monster, which, according to Euromonitor data compiled by The Wall Street Journal, currently controls roughly 35% of the $9 billion U.S. energy drink market? Under the terms of the agreement, Coke will have the option to increase its stake to 25% over the next four years.

Of course, Monster also stands to benefit from the deal. If there is one thing that Monster lacks it is international exposure -- something that Coke has an abundance of. In fact, Monster currently generates less than 25% of its sales outside of the United States, according to The Wall Street Journal. However, the company could nearly double its sales going forward with access to Coke's massive global distribution network, according to the Journal, which cites research firm Sanford C. Bernstein. . 

The global energy drink market is expected to grow at a compound annual growth rate of roughly 13.38% between 2013 and 2018, according to data from Research and Markets cited by Reuters.  For comparison, the global soft drink market is expected to grow just 4.3% between 2012 and 2017, according to research from Data Monitor. Going forward, Monster could leverage Coke's massive distribution network to expand its market share worldwide in this fast-growing beverage category. Coca-Cola, after all, boasts the world's largest beverage distribution system, which reaches customers in more than 200 countries today. Additionally, Coke sold a record 28.2 billion unit cases of its beverages last year through this distribution network . 

As part of the deal, Coke will put its energy drink brands including Full Throttle under Monster's control, whereas Monster will give its non-energy segment drinks such as Hansen's Natural Sodas to Coca-Cola.

The bad and the ugly
Given its strong balance sheet, Coke could have easily purchased Monster Beverage outright. However, the ugly truth is that doing so would have made Coke significantly more vulnerable to Monster's controversial products. The move also shields Coca-Cola's warm and fuzzy polar-bear-adorned brand image from being tarnished by Monster's brash branding.

Energy drinks have come under heavy scrutiny in recent years because of health concerns. The Food and Drug Administration launched an investigation in 2012 looking into five deaths that were reportedly linked to Monster Beverage. The FDA later said it found no problems with two primary additives, taurine and guarana, found in Monster drinks. However, the FDA said it has not reached any final decisions and is still investigating the health risks of energy drinks. This could lead to increased regulations on the sale of energy drinks down the road.

Yet, by simply owning a stake in Monster Beverage, Coke is able to take on less risk in this controversial drink category. The important distinction here is that Coke will now be distributing energy drinks but won't actually own them. Moreover, this arrangement gives Coke an opportunity to accelerate growth in the $9 billion domestic energy drink market without taking on all of the risk. "The Coca-Cola Company will become Monster's preferred distribution partner globally and Monster will become the Coca-Cola Company's exclusive energy play," according to a company press release. 

This strategy has worked well for Coca-Cola lately. If you remember, the king of pop also took baby steps when investing in Honest Tea and later Zico coconut water. Coke took a 40% stake in Honest Tea in 2008 before buying the remaining stake in 2011. The company followed a similar path with its calculated buyout of Zico in 2012.

Ultimately, taking a small stake in Monster with the option of adding to that position in the future is Coke's safest bet given the dark side of energy drink perception in the U.S. today.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Productivity Gains Drive Steady Improvement In The Mining Industry

Evidence continues to mount that the worst of a three-year downturn is fading for the mining industry with the world's second biggest miner, Rio Tinto Rio Tinto, last week reporting better than expected mineral production for the June quarter, and the world's biggest miner, BHP Billiton BHP Billiton, expected to match its arch-rival when delivering its June quarter report tomorrow (July 23).

Both companies have become heavily reliant on Chinese demand for iron ore but the highlight of Rio Tinto's output for the three months to June 30 was a 5% increase in copper production, a performance BHP Billiton is expected to match as both companies rotate their focus away from iron ore to other assets in their diversified portfolios.

Rio Tinto's expanded rate of copper production impressed analysts at the investment bank, J.P. Morgan J.P. Morgan, which noted that the company had revised upward its guidance for the 2014 calendar year with output of refined copper expected to rise by 15% to 300,000 tons.

Rio Tinto Rated A Better Investment

Like a number of other investment banks, J.P. Morgan rates Rio Tinto as a better investment at its current share price than BHP Billiton though its is interesting that of eight banks surveyed all have the big two of world mining on their buy lists or, at worst, assigned a neutral rating. None say sell.

What analysts seem to like about the diversified miners is their ability to replace a fading star, which is iron ore, with alternative divisions, such as copper.

Rio Tinto reported that in the June quarter it achieved productivity gains across its business through a combination of increased production volumes and cost cutting. Those improvements are expected to be revealed in the company's half-year financial statement scheduled for release on August 7.

BHP Billiton's June quarter is tipped to surprise on the upside with the investment bank, UBS UBS, telling clients yesterday that the key areas to watch will be iron ore and coal.

Rising Output And Cost Cutting Are The Drivers

While production rates of minerals, and oil in the case of BHP Billiton, are being maintained or expanded the primary driver of financial performance appears to be productivity improvements which seem likely to see both companies maintain profits and potentially increase dividend payouts despite the ongoing weakness in the price of some minerals.

J.P. Morgan expects Rio Tinto to suffer a small decline in profit before tax, depreciation and other charges in its December 31 year with earnings down by 6.5% from $19.4 billion in 2013 to a forecast $18.2 billion this year, but with shareholders receiving dividends up 6% from $1.98 to $2.10. Profit and dividend growth are expected to continue in later years.

BHP Billiton should do better than Rio Tinto, though a direct comparison is complicated by its financial year ending on June 30. UBS estimates that when the big miner files its financial results on August 19 it will feature a very modest 2% increase in pre-tax earnings at $23.4 billion, matched with a 3.5% increase in dividends for the year with last year's $1.16 a share topped by a payout of $1.20 for the latest year.

Strong cash flows are also being directed to debt retirement with BHP Billiton tipped to be debt free by 2017, a significant change on the $27.5 billion net debt position at June 30 last year.

Smaller Companies Dropping Out

The outlook for both companies is strong with increased productivity starting to be boosted by slightly higher commodity prices as demand for raw materials picks up, particularly in Asia, and rival miners struggle to develop projects thanks to a shortage of risk capital.

For the big two of world mining the next few years could be a time to cement their leadership roles as smaller companies drop away either because their production costs are too high, or they cannot raise fresh debt or equity.

Chip Wilson Sheds Lululemon Stock: Good News or Bad?

Popular Posts: 3 Letters, 3 Tickers, 3 Fantastic Stocks to Buy3 Potential Stock-Lifting M&A Deals We Could See by 2015The Best Ways to Buy the Alibaba IPO Recent Posts: Chip Wilson Sheds Lululemon Stock: Good News or Bad? Will XLY, Consumer Stocks Bounce Back? Hotel Stocks Are Hitting Their Stride View All Posts Chip Wilson Sheds Lululemon Stock: Good News or Bad?

Chip Wilson threw in the towel Thursday. The Lululemon (LULU) founder sold half of his 28% ownership stake to Advent International, the Boston-based private equity firm that first invested in Lululemon stock back in 2005. Wilson's move signals a truce between LULU and its controversial founder.

So, what exactly does yesterday's news mean for LULU and Lululemon stock? Is it good news, bad news or much ado about nothing?

Good News for Lululemon Stock

Chip Wilson's threat to launch a proxy fight was a distraction that LULU didn't need. CEO Laurent Potdevin has been on the job for seven months now, working to revitalize a brand that took a huge hit in 2013. The former head of Tom's Shoes, and before that, Burton Snowboards, is trying to build an organization that's better prepared for its next stage of growth.

As the saying goes, you only get one chance to make a first impression. Wilson's interference took the focus away from the task at hand for Potdevin, which is to regain the trust of its loyal following and owners of Lululemon stock. Fighting a proxy battle does little to engender that.

Wilson receives $845 million for half his 40.2 million shares, which works out to $42 per share. While that's well below $76 — its 52-week high from October 2013, Wilson obviously feels a bird in the hand is worth two in the bush when it comes to Lululemon stock. While this agreement means he can't fight a proxy battle or support a hostile takeover until 2016, he now has the support of his former partners who did very well on their initial investment. Perhaps they feel it's time to return the favor.

The Globe and Mail's Marina Strauss points out a couple of positives I hadn't really considered.

First — and this comes second-hand from Jim Danahey, CEO of CustomerLAB, a Toronto-based productivity consultant — is that the sale agreement forces Laurent Potdevin "to sink or swim." He essentially has until the annual meeting in 2016 to fix the business and get it humming again with gross margins into the mid 60s and Lululemon stock into the $70s. If not, he's gone and Advent goes to work.

The second point is that the agreement calls for the company to hire an independent expert to carry out a 90-day evaluation of the board's policies and procedures. With one of the two Advent representatives becoming co-chairman, the board is being forced to consider the interests of the new board members, which are different from the short-term mindset Wilson feels the current board is following

Wilson selling Lululemon stock should be viewed as a good thing because it enables him to carry out a toned-down fight in the boardroom rather than a messy battle in the press. With an ally alongside (Advent) it will be that much easier.

Bad News for Lululemon Stock

If you're not a Chip Wilson fan because of his outrageous statements about women's bodies, etc., then you probably hoped he would sell his entire stake and quietly disappear. Unfortunately for you, despite selling half his shares, he's not going anywhere. Nor is he getting involved with Kit and Ace, his wife and son's new street-wear brand.

Some believe that Wilson created a cult-like business environment that Christine Day was unable to squash. While she brought a level of professionalism to LULU, it was Wilson's passion that carried the day. That's a good thing when businesses are just starting out … but when they have 263 stores in five countries and expansion plans that include more than 100 stores across North America, Europe and Asia, it helps to have people who aren't prone to speaking first and thinking later.

As long as Chip Wilson remains in the game, it's hard to imagine Laurent Potdevin getting much room to maneuver. Fortunately, Potdevin has worked for two founder-led companies in the past and understands the nature of the beast. Only, in this situation, we're talking about a public company, which makes matters much more delicate.

Bottom Line for Lululemon Stock

Don’t misinterpret yesterday's news as much ado about nothing — despite the fact nothing has really changed at the company. Potdevin is still CEO and Wilson is still the overly protective father figure.

On balance, I view this move as good news for Lululemon stock. Potdevin has the experience to turn LULU around; the share sale provides investors with a little more assurance that Wilson is going to play nice in the sandbox. Hopefully, that translates into a crisis-free remainder of the year.

As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.

4 Stocks Breaking Out on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Read More: Warren Buffett's Top 10 Dividend Stocks

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Read More: 5 Hated Stocks That Could Pop When the S&P Drops

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Fiesta Restaurant Group

Fiesta Restaurant Group (FRGI), through its subsidiaries, owns, operates and franchises fast-casual restaurants. This stock closed up 4% to $47.11 in Wednesday's trading session.

Wednesday's Volume: 873,000

Three-Month Average Volume: 283,878

Volume % Change: 271%

From a technical perspective, FRGI ripped sharply higher here right above some near-term support at $43 with strong upside volume flows. This big spike to the upside on Wednesday briefly pushed shares of FRGI into breakout territory, since the stock flirted with some near-term overhead resistance at $47.43. Shares of FRGI tagged an intraday high of $48.56, before closing off that level at $47.11. Market players should now look for a continuation move to the upside in the short-term if FRGI manages to take out Wednesday's intraday high of $48.56 with high volume.

Traders should now look for long-biased trades in FRGI as long as it's trending above its 50-day moving average at $44.19 and then once it sustains a move or close above $48.56 with volume that hits near or above 283,878 shares. If that move gets underway soon, then FRGI will set up to re-test or possibly take out its next major overhead resistance levels at $52.07 to its all-time high at $53.08. Any high-volume move above $53.08 will then give FRGI a chance to make a run at $55.

Read More: 8 Stocks George Soros Is Buying

Blue Nile

Blue Nile (NILE) operates as an online retailer of diamonds and fine jewelry worldwide. This stock closed up 2.7% at $25.55 in Wednesday's trading session.

Wednesday's Volume: 348,000

Three-Month Average Volume: 147,462

Volume % Change: 167%

From a technical perspective, NILE jumped higher here right above its recent 52-week low of $23.10 with strong upside volume flows. This stock has been downtrending badly for the last five months, with shares moving lower from its high of $36.16 to that 52-week low of $23.10. During that downtrend, shares of NILE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NILE are starting to rebound off that low with strong volume and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if NILE manages to take out some near-term overhead resistance levels at $26.50 to $27.08 with high volume.

Traders should now look for long-biased trades in NILE as long as it's trending above Wednesday's intraday low of $24.47 and then once it sustains a move or close above those breakout levels with volume that hits near or above 147,462 shares. If that breakout kicks off soon, then NILE will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $28.05 to $28.34, or $29 to $30.

Read More: 4 Stocks Warren Buffett Is Selling in 2014

On Assignment

On Assignment (ASGN) provides short- and long-term placement of contract, contract-to-hire and direct hire professionals in the U.S., Europe, Canada, China, Australia and New Zealand. This stock closed up 4.8% at $29.09 in Wednesday's trading session.

Wednesday's Volume: 897,000

Three-Month Average Volume: 379,400

Volume % Change: 105%

From a technical perspective, ASGN ripped sharply higher here with above-average volume. This stock recently gapped down sharply lower from $35.56 to $26.23 with heavy downside volume flows. Follow that move, shares of ASGN have now started to rebound with bullish upside volume flows and this stock is now trending within range of triggering a big breakout trade. That trade will hit if ASGN manages to take out Wednesday's intraday high of $29.32 to its gap-down-day high of $30.35 with high volume.

Traders should now look for long-biased trades in ASGN as long as it's trending above $28 or above Wednesday's intraday low of $27.52 and then once it sustains a move or close above those breakout levels with volume that this near or above 379,400 shares. If that breakout begins soon, then ASGN will set up to re-fill some of its previous gap-down-day zone that started at $35.56.

Read More: 5 Rocket Stocks to Buy for Correction Gains

First Solar

First Solar (FSLR) provides solar energy solutions worldwide. This stock closed up 3% to $65.60 in Wednesday's trading session.

Wednesday's Volume: 9.27 million

Three-Month Average Volume: 2.86 million

Volume % Change: 238%

From a technical perspective, FSLR jumped higher here right near its 200-day moving average of $60.67 with strong upside volume flows. This spike to the upside on Wednesday also pushed shares of FSLR back above its 50-day moving average of $65.31. Shares of FSLR are now quickly moving within range of triggering a near-term breakout trade. That trade will hit if FSLR manages to take out Wednesday's intraday high of $65.94 and then once it clears some key near-term overhead resistance at $66.68 with high volume.

Traders should now look for long-biased trades in FSLR as long as it's trending above $64 or above $62 and then once it sustains a move or close above those breakout levels volume that hits near or above 2.86 million shares. If that breakout triggers soon, then FSLR will set up to re-test or possibly take out its next major overhead resistance levels at $70 to $72, or even $73 to its 52-week high at $74.84.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Big Stocks on Traders' Radars

>>5 Tech Trades Ready to Move

>>4 Stocks Under $10 Moving Higher

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

A Risk Worth Pursuing

Know Your Risk Tolerance

Given the ongoing correction in the oil and gas markets, I want to use this week's column to reflect on investment philosophy and risk. In recent weeks some master limited partnerships (MLPs) have experienced sharp corrections, a reminder of the downside risks especially inherent in high-flyers and some of the higher yielders.

I think it's critically important to understand what type of an investor you are, and the extent of your risk tolerance. This is why I usually qualify investment recommendations with descriptors such as "short-term," "long-term," "aggressive," "moderate" or "conservative." My own investment style is long-term and moderate. For me, that means I am generally making an investment that I know could take three years or longer to pay out.

My "moderate" threshold means that I am willing to withstand up to about a 20% downside on the investment either during a market correction, or if there is bad short-term news that doesn't really affect the longer-term prospects. To me, conservative investors should be prepared to accept a potential 10% downside risk on an investment, while those making aggressive investments must understand that downside risks can easily exceed 20%.  

A Recent Reminder

Consider Phillips 66 Partners (NYSE: PSXP), which owns some of the midstream logistics assets of its sponsor, the refiner Phillips 66 (NYSE: PSX). Ordinarily we might consider such a midstream MLP to be a fairly conservative investment, but PSXP exploded out of the gate after its IPO and has continued to be one of the most lucrative MLPs since its IPO. In just the first half of this year, the unit price rose 110%. As the unit price rose and the yield continued to shrink, price targets were raised again and again by brokerage houses.

We have urged caution as we felt the valuation of PSXP was reaching unsustainable levels. Last m! onth in Full Hearts, Thin Yields, I warned that investors "have very aggressive expectations of  how the partnership [PSXP] will grow its distribution" and that "anything that falls short of those aggressive expectations could result in a sharp pullback in the unit price." PSXP units are down over 16% since I wrote those words three weeks ago, and down nearly 20% over the past month.

I am not telling that story to impress you. If you held PSXP since its IPO, or even since the beginning of this year, you are still very happy with your investment. But this is a reminder that even a midstream MLP can be an aggressive investment, and anyone investing in PSXP a month ago needed to be mentally prepared for such a correction, or at least have stop-loss protections in place.   

Admittedly, midstream MLPs are not where you will tend to find the most risk. They are generally less volatile than the variable distribution MLPs such as refiners and fertilizer producers, as well as the upstream MLPs, which I expect to benefit from the continued growth of domestic oil and gas production. If you are a conservative or moderate investor, these investments are not for you in most cases. For aggressive short-term traders these investments can prove lucrative — but timing is everything.

And just as a yield depressed by a big runup in the unit price can signal trouble ahead, so can a higher yield implying higher risk. We dropped Eagle Rock Energy Partners (NASDAQ: EROC) from The Energy Strategist and MLP Profits portfolios last year shortly before declines turned it into a double-digit yielder, and haven't regretted those decisions for a second.

At this point, the trailing 13.7% yield reflects a distribution that was discontinued last quarter amid a business slump. It is no consolation to investors who have seen the unit price drop 24% year-to-date, and 35% over the past 12 months. Might EROC have an impressive showing over the next 12 months? It's possible, but you have to be pre! pared for! further downside. EROC units are trading at $4.37, and we know people who thought they were getting a bargain at $10, $8, and $6 (as it fell from its 2011 high above $12).

Don't Forget to Get Paid

Obviously, investments with higher downside risk must offer commensurately greater upside. I look for those that are out of favor but still have a bright long-term outlook. The natural gas sector fits that bill right now. I see upward pressure on prices over the next five years (despite the recent downward pressure on natural gas prices, which I view as short-term), for two primary reasons.

Liquefied natural gas (LNG) export terminals will begin operation as early as late 2015, when Cheniere Energy Partners (NYSE: CQP) completes its Sabine Pass LNG export terminal. Sempra Energy (NYSE: SRE) has also received approval for an LNG facility on the Gulf Coast in Louisiana, and there are 13 more proposals awaiting approval. As more of these terminals come online, some of the excess natural gas will find its way to more lucrative markets.

Natural gas should get another long-term boost from a US Environmental Protection Agency (EPA) rule that would cap carbon emissions on new power plants. Coal-fired power would be unable to economically meet the new emission standards, but current gas-fired power plants already do so.

However, short-term fluctuations like uncharacteristic weather can override the longer term trends, so this is a riskier bet for a short-term investor. This past winter was uncharacteristically cold, and pushed gas prices to highs that haven't been seen in years. Now an uncharacteristically cool summer is underway, and that has reduced demand and resulted in a steep drop from the highs seen in the spring.

But longer term, I believe higher gas prices are in the cards and natural gas producers should benefit. This will benefit upstream MLPs as well as midstream MLPs racing to transport new gas production to market. Over the past four years direct capital invest! ment in U! S oil and gas infrastructure has increased by 60%, reaching $90 billion in 2013. Over the next 10 years, the US is projected to spend $1 trillion on new oil and gas infrastructure.

This is a positive long-term story and there will be numerous winners. Patient investors — even patient aggressive investors — should see ample rewards. But we all need to understand our short-term risk tolerance, as short-term corrections can be steep.

Conclusions

The energy sector has been one of the top performing sectors of the year, but over the past month a correction has been underway. The Alerian MLP Index declined by more than 5% in just the past week, while some typically steady MLPs have shed even more. Given this year's gains, it may be worthwhile to reflect on the makeup of your portfolio and make sure that it still matches your time horizon and risk tolerance.    

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

3 Reasons To Buy Merck For The Long Term

Related MRK Pharma ETFs in Focus on String of Earnings Beat - ETF News And Commentary Stocks Lower As Earnings Season Takes Back Seat To Geopolitical Uncertainties Week Ahead: July Jobs Report, FOMC and GDP (Fox Business)

Merck (NYSE: MRK) is a blue chip "Big Pharma" stock that is up for the last week, month, quarter, six months and year of market action.

For 2014, Merck has risen by nearly 19 percent. There are three reasons for long-term investors to buy shares of Merck in expectation that the share price will increase even more.

Merck Has A Solid Pipeline Of Products And Services

The bullish trajectory of its earnings is testament to that. Earnings per share for Merck for the last five years was a -16.50 percent. This year, it is even worse at a -26.50 percent.

Next year, however, earnings-per-share are expected to jump to 4.55 percent. For the next five years, earnings per share for Merck are expected to be at almost 4 percent.

Related: Reasons To Buy Cracker Barrel On The Dip

It's On A Bullish Trend

The dividend component of Merck also makes it appealing for long-term investors. At present, the dividend yield for a member of the Standard & Poor's 500 Index averages about 1.8 percent. The dividend yield for Merck is 3 percent, more than 50 percent higher. Income investors should also like that Merck is a Dividend Aristocrat. That means the company has increased its dividend yield annually for at least the last 25 years. From that, shareholders get a raise each year just for owning the stock.

Demographics Favor Merck

The world is getting older and richer. That change results in more spending on healthcare goods and services. From that, Merck will prosper.

Merck is now trading around $57.85. The mean analyst target price for the next year of market action is $60.94. Making the future look even more bullish is that Merck has a tiny short float, evincing that few expert the price to fall.

Posted-In: healthcare medicineLong Ideas Dividends Emerging Markets Technicals Markets Trading Ideas Best of Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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