Diamonds and Dogs
10/22/12
Monster Beverage Corporation (MNST)Monster Beverage is drowning today, down 14.23% at $45.73. The energy drink maker saw its shares go drastically lower after an FDA report was released stating that five deaths may be related to Monster's energy drink. The FDA report stated that since 2009 there have been five deaths and one non-fatal heart attack that could possibly be linked to the consumption of Monster's drink. The news follows last week's filing in California of a wrongful death suit by the parents of a 14 year old girl who died after drinking two, 24-ounce Monster Beverage Corp. drinks in 24 hours. An autopsy concluded she died of cardiac arrhythmia due to caffeine toxicity. Monster Beverage shares lost over $7.50 today.
SuperValu Inc. (SVU)
SuperValu Inc. is creating some value for its shareholders today, up 44.75% at $3.17. The retail and wholesale food company saw its shares climb higher after news of a possible acquisition. Some reports released stated that private-equity firm Cerberus is seeking capital to make a bid for SuperValu. Cerberus is attempting to arrange $4 billion to $5 billion in debt financing, with both Bank of America and JP Morgan Chase, who are considering forming a syndicate to aid Cerberus. SuperValu had another poor earnings report, showing that the company's cash position continued to shrink as net retail food sales dropped 7.3%. The company has seen its cash fall to $148 million, and its debt climb to $6.1 billion. However, SuperValu is up significantly today and pushed up off of its 52-week low.
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