By Karen Starich

Monster Beverage (MNST), the popular energy drink, has far outpaced the S&P since January 2010 where it began trading near $20 to it’s recent highs in June near $78.  The company was also added to the S&P 500 in June replacing Sara Lee.  The positive run changed last week when the stock dropped 11% on Friday closing at $54.27, a far cry form the recent highs near $78,  The reason for the drop could be coming from news that the company is being investigated by a states attorney general.

Motley Fool reported that In July 2012, the Company received a subpoena from a state attorney general in connection with an investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage, and sale of its Monster Energy brand of energy drinks. As the investigation is in an early stage, it is unknown what, if any, action the state attorney general may take against the Company, the relief which may be sought in the event of any such proceeding, or whether such proceeding could have a material adverse effect on the Company’s business, financial condition, or results of operations.

The IPO astrology chart does confirm that there could be a legal challenge and there could be a challenge to the safety of the ingredients in their popular energy drink.  The IPO shows an aspect with Jupiter square Moon.  For a company that is in the food industry this type of aspect suggests profits and promotion could be more important than diet and health, sort of like Scarlet O’Hara “I’ll think about that tomorrow.”  Tomorrow may have come last week and we will have to see what comes out of the investigation.

From the perspective of the astrology the legal challenge and reputation of the product could have a setback when transiting Jupiter makes a square to the IPO Jupiter and opposes the IPO Moon beginning August 23rd.  Neptune is also square the IPO Venus which could suggest the ingredients may be questioned for their safety and the consumers of the drink may drop their loyalty over health concerns.  We will have to see how the investigation pans out, as for the astrology I view these aspects as a warning of a further decline that could carry into the Fall.

The following is by Karen Starich, who uses astrology to forecast events in the financial markets. Astrology Traders provides specific dates and in-depth analysis of future events for the financial markets through weekly updates, trade alerts, and educational webinars.

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