Hansen Natural: Amazing Growth Stock Now Attractive to Value Investors

Hansen Natural (HANS) is one of the best stock stories of the past 10 years. At the beginning of September 2003, HANS stock traded at a split adjusted $0.75 per share. Today, the stock trades at about $28. That's an annualized return of 106% per year! With a $10,000 investment in 2003, you would be sitting on stock worth about $373,000 today! Even more amazing is that, at this $28 price, the stock is cheap enough to show up in the Magic Formula Investing screen. If you would have sold that investment when the stock topped out at near $68 in October of 2007, the investment would have earned a return of 146% per year! Amazing!

As with all growth stocks though, Hansen has come crashing back to earth. These are the times when these rocket growth stocks become attractive to value investors like us. Hansen won't come close to it's 5 year figures of 48% annual revenue growth and 92% operating earnings growth, but the latest quarter showed a company that is still growing. Let's look a bit closer.