Monster jolt: Hansen stock spikes on sales of energy drink.

It's been a monster of a quarter for Hansen Natural Corp.

Due to the popularity of its Monster energy drink--a mixture of caffeine, vitamins and carbonated sugar water that has become incredibly popular among extreme sports enthusiasts--Hansen's stock has jumped five-fold in the past year.

And it shows few signs of slowing.

The Corona-based company's fourth-quarter profit surged 152 percent to $18.4 million, while fourth-quarter sales jumped 84 percent to $114 million.

Citigroup analyst Gregory Badishkanian has issued a "buy" rating on Hansen's stock earlier this month, and believes at this growth rate, shares could easily hit between $150 to $160 a share. Hansen's shares traded last week at about $113 a share.

"Hansen is still in the early stages of its growth cycle." said Badishkanian, who thinks Hansen is the most attractive "pure-play" in the beverage industry.

The company gets 60 percent of its total revenues from energy drinks, the fastest-growing segment of the beverage market. Moreover, Hansen has a variety of drinks including Monster Energy, Lost Energy. Hansen, Blue Sky and Junior Juice, and is rapidly gaining market share on industry leader Red Bull, made by Anstria-based Red Bull GmbH.

Chief Executive Rodney Sacks has attributed the company's success to its "aggressive personality and "in-your-face image." which has been cultivated at skateboarding, surfing, motocross and desert racing events. Its primary customers are men aged 18 to 30, who often use the energy drinks as cocktail mixers.

Sacks and Hilton Schlosberg, Hansen's vice chairman, chief financial officer and chief operating officer, own 25.6 percent of Hansen's stock, a stake now worth nearly $670 million, according to the most recent proxy.

The question going forward is whether Hansen will be able to produce long-term earnings growth of 20 percent, keeping its lead on the industry average of 8 percent for its peel group. Moreover, the fourth-quarter surge in sales and profits came during a bout of cold weather nationwide, which hampered sales of its other natural sodas, calmed smoothies and Energade drinks.

Despite pessimists who think the powerhouse beverage companies Coca Cola Co. and Pepsico Inc. will eventually gain market share in the energy drink segment, Hansen's Monster drink was able to hold its own during an onslaught of Super Bowl advertising by Coca Cola for its energy drink, Full Throttle.

Hansen's stock already trades at a 47 percent premium to its larger competitors. A year ago, Hansen was considered a takeover candidate for both Coke and Pepsi, which had the chance to buy the company before the energy drink fad kicked in--but that opportunity has now come and gone.

Short sellers, of course, have jumped into the stock, believing the energy fad will ultimately fade. They have accumulated 4.5 million shares, or more than a quarter of the stock's float.