This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

November 5, 2010 - Hansen Natural Corp. (HANS-NASDAQ) through its subsidiaries, develops, markets, sells, and distributes beverages in the United States and internationally. The company principally offers natural sodas, fruit juices and juice drinks, energy drinks and energy sports drinks, fruit juice smoothies and functional drinks, non-carbonated ready-to-drink iced teas, children's multi-vitamin juice drinks, and flavored sparkling beverages under the Hansen's brand name.

In addition, the company markets, sells, and distributes ready-to-drink iced teas under the Peace Tea brand name; natural sodas, premium natural sodas with supplements, organic natural sodas, seltzer waters, and energy drinks under the Blue Sky brand name; and enhanced water beverages under the Vidration brand name, as well as Java Monster line of non-carbonated dairy based coffee and energy drinks, and X-Presso Monster Hammer energy drinks.

Further, it offers Monster Energy brand energy drinks, including Monster Energy drinks, lo-carb Monster Energy drinks, Monster Energy Assault energy drinks, Monster Energy Khaos energy drinks, Monster Energy M-80 energy drinks, Monster Energy Heavy Metal energy drinks, Monster Energy MIXXD, Monster Energy Import energy drinks, and Monster Energy Dub Edition energy drinks. The company also provides Hansen's Natural Lo-Cal juice cocktails; and Hansen's SELF Beauty Elixir ready-to-drink beauty beverages.

Customers include full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors, and food service customers. Hansen Natural Corporation was founded in 1985 and is based in Corona, California.

In 2001, you could have bought all the stock in HANS you wanted for 30 cents a share. What a difference a decade makes. Back then, the company made 4 cents a share, and there was concern about its viability. This year, 9 analysts see earnings at $2.39 (up from $2.21 in 2009). Next year, the consensus estimate is for $2.73. Third quarter earnings will be out shortly and should be 71 cents a share, well above the 60 cents earned last year in the third. Expect 62 cents for the fourth compared to 57 cents made in last year's fourth.

The company is ramping its marketing effort as it tries to take market share from the largest energy drink maker Red Bull. Along with promotions, it's launching new drinks like low-calorie Monster Energy. It's also re-packaging popular drinks like X-Presso Monster into different sizes. In the Peace Tea line, new unsweetened and diet teas will soon appear.

There are lots of opportunities for HANS as the energy market is expanding. Consumers are beginning to open their wallets a little wider now that it seems the worst of the recession is behind them. That means they'll be spending more on healthier and higher-end drinks, the kind Hansen offers. A key factor for Hansen's continued success is an economic recovery. If there's a double-dip recession, don't expect the forecasted earnings to be hit.

Hansen is filling shelves abroad, in places like Slovakia, Norway and the Czech Republic. Australia has become a major focus as more competition develops. It's taking the X-Presso Monster down under by the end of this year. No doubt, more new drinks will be headed there as that economy is one of the more robust globally, and the people are mostly outdoor, energetic types.

As management ramps marketing and promotion, bills have to be paid. There's plenty of cash to handle those as well as look at other companies to add to the fold or increase research and development. There's $471.57 million in cash. Total debt is $135,000. Debt to equity is .0002 Current ratio is 4.84.

More numbers: Price to sales ratio is 3.76. Price to book is 6.67. Book value is $$7.70. Operating margin for the last 12 months was 27.81% while Profit margin was 17.15%. Return on Equity was a remarkable 33.57% and Return on assets was 23.88%. Beta is .59. The stock recenlty hit $52.84 (all-time high was set in 2007 at $68.40). There are 88.17 million shares outstanding and a Float of 79.13 million. Insiders own 18.20% of the stock. Institutions have 69.60% of the Float. There is no dividend.

Aggressive investors who look for momentum stocks will like this one. It's been moving higher over the last year with one major dip that took it to $24 a share in May of this year. But it quickly recovered and now seems to be headed higher. If it can penetrate foreign markets and the global economy continues to improve, HANS looks like it wil have a very good year.

- Company Web site: www.hansens.com

- Ted Allrich