With $1 billion in cash, $1.7 in short-term investments, and no debt, Monster Beverage (MNST -0.05%) has some interesting options it could consider going forward. In this Motley Fool Live segment from "3-Minute Stock Updates," recorded on July 18, Fool.com contributor Toby Bordelon takes a closer look at how the company could spend its cash.
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Toby Bordelon: Now, here's the cash situation at the end of that last quarter. A billion cash, $1.7 billion in short-term investments, no debt. This is after first-quarter they spent $330 million on the CANarchy acquisition to get into the craft beer business, all cash, and about $200 million building up their inventory. A lot of cash, Connor, they got a lot of cash in that balance sheet. What are they going to do with all of it? I don't know. Now this $500 million new plan now you can see why they're doing that? When we got a lot of cash we're going to spend it somewhere.
One idea, I hope that they may go forward. Do they have plans for future acquisitions? Maybe. Maybe a brewery to support that CANarchy business and build out that alcohol business. If I had to guess, I suspect something like that might happen at some point. I'm also going to be interested in that second quarter when they do their reports, an update on, did they really do anything those last two weeks for the quarter ended with this new plan, how much they have left under that authorization, what's going on? Maybe they saw a great opportunity with stock and like let's just do it, let's buy this, we got nothing else to do with this. But $2.7 billion almost, what do they got. That's what they're doing. Good cash situation, no debt. They certainly got some resources to do what they want to do. They see some opportunities.