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When we initiated coverage of the consumer staples sector a couple of weeks back, we highlighted two "broken" growth stories as being interesting - MJN (+5.9% since 12/17) and MNST (-1.4%).  Admittedly, MJN's market share and pricing issues in China were easier to get comfort with versus the more open-ended spectre of the possible regulation of energy drinks, but we see the outcomes as ultimately being the same - investors will go back to paying a premium multiple for the underlying growth profile in both stories.

It is our belief that the FDA has as much business regulating energy drinks as we do - which is to say, right around no business at all.  And while the timing of a likely favorable outcome is unclear, we believe that investors will be rewarded for picking their spots in this name, as we did today.

MNST - Buying Mispriced Growth - MNST Mispriced

MNST - Buying Mispriced Growth - MNST T T

Robert  Campagnino

Managing Director