Hansen Natural (HANS): Prepped for a big move

You can't ignore Hansen Natural Corporation's (NASDAQ:HANS) numbers. The stock is currently trading at a P/E of 24.53 and forward P/E of just 13.11.

2009 has been an interesting year for the stock. Starting out the year, shares traded right around $33 a share - then accumulation began, sending shares up to $44. Then in early June, HANS had a sales slip, sending shared back down to the $30 level. Now however, a new accumulation cycle has begun.

Yesterday, Morningstar lowered HANS uncertainty rating.

"We are lowering our fair value uncertainty rating for Hansen Natural HANS in light of the recent evidence of macroeconomic stabilization in the United States. Although we expect consumers to spend cautiously for several quarters to come, we think that the recent stabilization in the housing market could signal that the worst is over for the consumer staples industry, narrowing the range of possible outcomes for the firm."

However, Sugar prices reached 28-year highs earlier this month, continuing a bull market surge that has lifted the commodity 88% since Jan. 1.

Some have labeled it a Sugar 'Crisis'. But Who should we believe on sugar? On one side, we have sugar buyers like General Mills, Mars and Hershey warning that we could “virtually run out of sugar” if we don’t change our sugar policy aimed to restrict imports. On the other side, we have sugar growers assuring us everything is fine and talking as if we have more sugar than we know what to do with.

Fellow Masters, under current U.S. policy, after a certain quota is filled, high tariffs kick in on sugar imports. The government can increase the quota amount, but it has to do so by Sept. 30 or wait until next year.

I'm betting that the U.S. does raise the quota, which should send HANS shares back up to the $40 level. Stay tuned for a follow up article in October to see where HANS is at then.

HANS Chart