People coming to this Sodastream site often write in asking me questions about Sodastream stock. Although I watch what Sodastream‘s stock does, I’m not someone that is really into playing the stock market. I watch the stock more as a sign of health of the company more than anything else. Perhaps it is youthful ignorance, but I’m still at the point in my life where I’m making sure my 401k is managed well and that I’m investing in the correct funds rather than individual stocks. With that said, however, I can’t tell you the number of times I’ve kicked myself for not picking up some stocks along the way.
Sodastream (SODA) has defiantly had an interesting run and seen a few corrections over the past few months. The article below is one of the most interesting I have seen in regards to what may lay ahead for Sodastream stock in the coming months. I’ve included a link to the full article below but here is a piece of the article I thought my readers might find interesting.
Why SodaStream Will Rip In The Next 4 Months
Sodastream International (SODA) has gotten killed in the last few months on everything from cautious guidance from management to the announcement of a competitor, The Primo Flavorstation. With more than 6 million of its approximate 14 million shares outstanding being shorted, SODA looks as if it might be down for the count. I believe that this could not be further from the truth.
Long term, sure maybe this thing is a fad, who knows, but we all know that the market doesn’t care about the long term or the S&P 500 (SPY) (SPX) would not have rallied 10% on hope for a solution from the 9th summit in 18 months (especially after EU leaders declared victory in July). The market doesn’t care about long term, so for the next few months, neither should you. I am bullish on SODA over the next 4 months; here’s why:
Stocks trade on earnings and guidance from earnings reports. This is undisputable and is evidenced by Netflix (NFLX) and Amazon’s (AMZN) recent plummet. I have gone to 4 different Macy’s (M) and 3 different Bed Bath & Beyond (BBBY) stores. Everyone that I have talked to said that they sold out of Soda makers last Christmas and that sales have been steadily increasing throughout the year. SODA’s future is in the Americas. In Sweden SODA has obtained about 20% household penetration yet it has not even grabbed 1% in the U.S. (as little as 3% household penetration could easily add $3 in EPS to SODA’s bottom line and at a multiple of 25x given its rapid growth, you could put the stock around $100 per share in a year or two’s time).
SODA will beat thanks to distribution and marketing. Last Q3 and Q4 SODA did not have its products fully distributed and many stores were just testing the product to see if they could sell it. The last annual report stated…
I don’t know how much stock I would put in the article (yes, pun was intended) but I did find it very interesting. One of the most interesting items mentioned in the article was the emergence of a new competitor for Sodastream here in the United States. The Primo Flavorstation, is reportedly going to be available and competing with the Sodastream Home Soda Maker line of products in the near future. Of course, the product isn’t available yet but in looking at the site, I wasn’t overly impressed. The inexpensive model looks like a very clear knockoff of the Sodastream Genesis and if you look at their flavors, their ingredients are almost identical to Sodastream’s. The upper end model, however, looks somewhat promising. It reminds me of a Tassimo or Keurig coffee maker but for soda. If the company is on their game, we will see this beauty making its way into stores for the holiday season. Of course, only time will tell if it can hold a candle to the Sodastream Home Soda Maker product line but you can bet, I’ll make sure I get my hands on one to offer a comparison on this site.
Learn more about Sodastream in my Sodastream Review
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