The asterisks (*) indicates that you're using a pointer (
http://www.cplusplus.com/doc/tutorial/pointers/). If you're not familiar with the concept of pointers, be prepared to have your minded dazzled and numbed, then once you start using them you'll see they're actually very very useful and easy at that (Every single programmer I've talked to that knows pointers has said this: Pointers become extremely easy to work with once you wrap your head around the concept).
In this situation, he's allocating space for each object (And constructing it!), and simply storing the address in memory of that object in the pointer 'me'. 'me' then 'points' to an object of type 'Monster' and can be used to access it by using the -> operator (as opposed to the simple dot . operator).
The benefit of doing this instead of creating a 'regular' object is that the lifetime of 'me' is no longer related to the scope it is in. The object will exist in memory until you explicitly delete it by using the operator
delete. This is beneficial because now you can pass the pointer around to functions or other variables while still referring to the same object.
If all of this sounds mind bogglingly difficult to grasp to you, don't fret because eventually everything will become clear. In my own experience, at some point during your programming journey you'll find yourself in need for exactly that which pointers offer, and you'll be somewhat forced to start using them. Once you get used to it though, you'll never look back and be glad you understand them :)