This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: A Monster Deal for Coca-Cola?

NEW YORK (TheStreet) -- U.S. equities closed near session highs with the S&P 500 climbing 0.43%. 

On CNBC’s “Fast Money” TV show, the trading panel examined Coca-Cola’s (KO) new investment, a 16.7% stake in Monster Beverage (MNST)

Brian Kelly, founder of Brian Kelly Capital, said big companies like Coca-Cola need to make deals like this in order to obtain growth. He questioned if PepsiCo (PEP) is the next to make a similar move with a different company.

Tim Seymour, managing partner of Triogem Asset Management, pointed out that PepsiCo has been aggressive in its snack business and in emerging markets. He called this a “very smart deal” for Coca-Cola, which has a superb distribution network. 

Guy Adami, managing director of, suggested that PepsiCo may not feel obligated to make a similar move as Coca-Cola, since its snack business is doing so well. 

Karen Finerman, president of Metropolitan Capital Advisors, said Coca-Cola has the right to nominate two board members for Monster Beverage, which may or may not lead to a larger stake in the future. 

CNBC’s John Jannarone noted that back in April he said a deal between Coca-Cola and Monster Beverage made sense. The deal is logical for Coca-Cola, as it will provide some much needed growth amid declining soda volume. The deal is constructive for Monster Beverage, because it will help with product distribution. Coca-Cola’s stake has the possibility to lead to a larger stake or a complete takeover in the future. 

Nik Modi, managing director at RBC Capital Markets, has a buy rating both Monster Beverage and Coca-Cola. He said Coca-Cola appears to be testing the water with its stake in Monster beverage, and may acquire more of the company if the products perform well in other market. The only other energy drink company it would make sense for PepsiCo to get involved with is Red Bull, which likely isn’t for sale. 

On J.C. Penney (JCP), Finerman said the stock is “not in the death spiral anymore, so that’s a good thing.” The company is improving the balance sheet, but the valuation is still not attractive since investors are pricing in a lot of good news. Kelly said he “wasn’t in a rush” to buy shares of J.C. Penney just because the company didn’t do as bad as investors had expected. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs