Hansen Natural Corporation (HANS) breaks $50 a share

Hansen Natural Corp (HANS) shares hit a new 52-week high today of $50.49.  Over the past 12 months Hansen shares have traded between $24.01 and today's new high of $50.49.  Hansen shares are now trading with a P/E Ratio of 22.2 and EPS of 2.19.

Here's the question investors are asking themselves today: Is it time to lock in gains in HANS or will the stock continue to climb? 

Continue reading to find the answer and more.

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The Upside:

Studies have shown that those who buy stocks after making new yearly highs during a bull market make higher average returns than the broad market indexes. However, these historical metrics are based on large averages, not to mention some bullish momentum in the market. It is very difficult to say whether as a single stock, HANS, will continue to trend up to new highs.

Rumor Mill:

According to various forumns on the internets, there could be some possible M&A activity in HANS. However, I for one don't believe everything I read on the internets, especially when it's acquisition talk. There is probably a 10% chance that HANS will get aqcuired in the next 6 months.

Downside:

Here at the Masters, we're not the biggest fans of buying at new 52 week highs. Resistance issues usually come into play. It's interesting to note that in the last month (consisting of 22 trading days), HANS traded at a higher volume than the daily average only 7 of these days.

A key benefit to watching volume is to understand the general trend of the market. Since three quarters of stocks follow the general market trend, it’s crucial you learn how to read the market action each day. Generally, stronger volume indicates a more important price change. With stocks, you want to see how the daily volume total compares with average daily volume. A stock rising in above average volume is generally positive.