Showing posts from 2012

IB Net Payout Yields Model

Riding The Rails At Plains All American Pipeline

After a great 2012 in the pipeline business, Plains All American Pipeline, L.P. (PAA) completed a transaction to increase the focus on rail transportation growth. The company finalized a $500M deal to acquire several loading facilities for railroads though the existing enterprise value of nearly $22B limits the impact of this rail move. Plains All American engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. The move highlights the transformational currents under cutting the pipeline business. As crude oil has been unable to transverse the current pipeline system to reach the refineries on the coasts, the railroads have stepped up with more direct routes that bypass the congested Cushing, OK oil hub. Not only is it a boon to railroads struggling with weak coal shipments, but exploration and refinery companies are access to better pricing than currently available. R

Accenture: Is The Stock Run Over As The buybacks Stall?

The stock of Accenture Ltd. (ACN) has had a great run over the last couple of years as the company has grown earnings and repurchased shares. As the stock has nearly doubled, the buybacks have stalled leaving the company with less bang for the investment. As one of the world's leading management consulting, technology services and outsourcing organizations has seen earnings nearly double in the last few years, the stock has seen strong gains. The company, though, hasn't been able to increase the buyback amount and in fact spent less in fiscal year 2012 versus 2011. All signs that the insiders with the best information might consider the stock price expensive. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

What Is Wrong With Oneok Partners?

After a great 2011 and facing a promising finish to 2012, Oneok Partners, L.P. (OKS) has fallen out of favor since the start of November. First, the company provided disappointing commentary on the Q3 earnings call. Second, it announced the decision to not move forward with a Bakken pipeline. The combination turned the market away from this previously hot stock. The company is one of the largest traded MLPs and a leader in gathering, processing, storage, and transportation of natural gas. ONEOK, Inc. (OKE) owns 42.8% of the equity interest. The stock has plunged from over $60 in early November to just below $53 today. In fact, the stock is now down for the year and approaching a total return near flat. Is it time to buy the stock now or are investors realizing that pipeline MLPs aren't free money? Read the full article on Seeking Alpha. The article is classified as PRO and will only be available for viewing for 30 days from 12/17/12. Disclosure: No positions mentioned. Plea

Investment Report - December 2012: Net Payout Yields

This model was up 0.01% in November versus a 0.3% gain for the benchmark S&P 500. The model slightly under performed the market in November, which can happen in solidly positive months. As of the end of November, the model was up nearly 20% for the year compared to 12.5% for the S&P 500.   In general, the model had a very uneventful month with flat returns and no trades. Bottom Performers While the model was flat for the month, several stocks had meaningful moves in November. The weakest stocks were Kohl’s Corporation (KSS), WellPoint, Inc. (WLP) and Entergy Corporation (ETR) . Kohl’s lost nearly 16% due to a weak earnings report at the end of the month. The stock plunged from nearly $51 to below $46 on disappointing sales. The company continues a large buyback and should be able to load up on shares at these attractive levels. WellPoint plunged at the beginning of November due to the re-election of President Barack Obama, which secured th

When Will The Tesla Investment Unravel?

With the SolarCity Corp (SCTY) IPO last week, investors got another reminder of the time demands of Tesla Motors (TSLA) CEO Elon Musk. Not only is he busy attempting to make Tesla into a force in the auto sector, but also he is busy launching rockets to Mars via SpaceX and now prominently involved with another public company. If anything highlighted the issues with his time, it had to be the IPO interview on CNBC. In general, it is odd for the chairman to be involved in the post-IPO interview. On top of that, the interviewers kept attempting to steer the questions towards Tesla. That isn't necessarily the fault of Musk, but it does highlight the issues that the stock market will place on his priorities now that he runs two public companies. While all three of his companies are revolutionary and worthy of attention, none of the companies are exactly more than developmental at this point. Tesla, as a prime point, has been public for over two years yet the market became excited base

Amgen: Will The Buyback Work This Time?

After the market close on Thursday, Amgen, Inc. (AMGN) announced an additional $2B stock buyback plan. The company executed a very successful buyback over the last year, so this additional plan is noteworthy, especially considering several companies have announced buybacks this week that aren't interesting or material. The company is a leading independent biotechnology medicines company that previously had a $10B buyback plan that has at least partially helped the stock to all time highs. This plan adds $2B to around $500M left on the previous plan. This leaves Amgen with $2.5B that it forecasts will be spent by early 2014. Also, the company significantly increased the dividend to $0.47 for Q113. This increases the dividend yield to 2.1%. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Is Williams Signaling A Larger Than 20% Dividend Increase?

In a rare move, Williams Companies (WMB) has been forecasting substantial dividend growth through 2014. Typically management teams prefer to keep dividend increases under wraps in order to 'surprise' the market with increases and generally temper expectations. The company has one of the leading energy infrastructures in North America. It owns interests in or operates 15,000 miles of interstate gas pipelines, 1,000 miles of NGL transportation pipelines, and more than 10,000 miles of oil and gas gathering pipelines. It owns more than 70% of Williams Partners L.P. (WPZ) , one of the largest diversified energy master limited partnerships. On Tuesday, the company announced a significant investment of $2.4B in Access Midstream Partners (ACMP) . Access conversely announced plans to purchase pipeline assets from Chesapeake Energy (CHK) for $2.16B. These transactions could improve the dividend potential at Williams by 2014. Read the full article at Seeking Alpha. Disclosure: No

Cerner Buyback: Waste Of Cash

After the market close on Wednesday, Cerner Corporation (CERN) announced a $170M stock buyback. The stock was up slightly in after-hours based on the news, but shareholders should absolutely ignore this supposedly good news. A leading supplier of healthcare information technology had a buyback plan since 2008 that has had little use or impact. More importantly, the company announced that the plan would only encapsulate 2.1M shares, or 1.2% of the company's shares outstanding. Why does the company even bother at that level? On top of that, why does the CEO claim that the buyback program is a good use of funds with the stock trading at 28x forward earnings? The stock trades above the expected growth rates suggesting limited value. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Elon Musk Debuts A Second Company

Anybody following this blog knows that Stone Fox Capital has been negative on Tesla Motors (TSLA) because the CEO, Elon Musk, is actively involved in multiple firms. In what is seen as his 3rd firm, SolarCity (SCTY) debuted to on the Nasdaq. The CNBC interview this morning highlights the issue with him so focused on other firms. As only Chairman, it's odd for him to be interviewed along with the CEO. Typically its the CFO if anybody that shows up on tv. Note how the conversation goes directly towards Tesla when the CEO can't hear the interviewers. Just the confusion on this interview highlights the risks in these stocks. Elon is clearly highly involved with this firm along with SpaceX. As the CEO of Tesla, he should be spending all of his time on that firm. The guy is obviously brilliant, but his competition is completely focused on one company and sector. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Ignore The Cummins Buyback

After the market close on Tuesday, Cummins Inc. (CMI) announced an additional $1B stock buyback. The stock was up roughly 1% in after-hours based on the news, but shareholders should ignore this supposedly good news. The manufacturer of diesel engines has historically bought its own stock over the last 5 plus years so investors should not be surprised by such a move. The company continues to make strong profits so the lack of an additional buyback program would be more abnormal. More importantly, the company approved the buyback program as the last $1B approval in February 2011 comes to a close. Effectively the company has taken nearly 2 years to complete a buyback that amounts to 5% of the outstanding shares or market value. Over 2 years, the buyback will only amount to roughly 2.5% of the outstanding shares each year. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Facebook's Nasdaq 100 Inclusion To Reduce Volatility

In a matter of a few months, Facebook (FB) has gone from a bumbling internet behemoth to a tech darling. Now prior to market open on Wednesday, the tech giant will be added to the NASDAQ-100 Index according to the news release by NASDAQ OMX Group (NDAQ) . An event easily predicted, but another example that has added to the momentum for the stock. The stock has jumped 50% since mid-November when it traded around $19. At the current price of nearly $28, the company trades at extreme valuations that could finally help the short thesis. As a firm hoping to short Facebook stock (see articles here ), the NASDAQ-100 event could be a signal of a top. Plenty of funds will be forced to buy the stock, hopefully pushing it to near-term highs. An important question is whether being adding to the index signaled past tops? Similar to how the stock lockup that created potential added sales actually produced the November bottom and the ensuing rally. Read the full article at Seeking Alpha. Discl

Freeport Turns Cheap On Complex Purchases

Last week, Freeport-McMoRan Copper & Gold Inc. (FCX) announced monumental mergers that sent the stock plunging 20% over the next two trading days. While the deals appear attractively priced compared to the assets obtained, the market clearly doesn't appreciate complex investments in the current environment. For those investors living under a rock, the company agreed to purchase both Plains Exploration & Production Company (PXP) and McMoRan Exploration (MMR) . Since both of these companies focus on oil and gas exploration, the purity of being a strictly copper focused producer attracted plenty of investors that might disappear now. Another major issue is that investors actually don't understand the McMoRan Exploration potential. Too many investors focus squarely on the failures of the exploratory Davey Jones No. 1 well and miss all the other wells under drilling programs. These wells are drilled with the benefits learned from the failures of the original Ultra-Deep Sha

Top 10 Net Payout Yield Stocks For December

This article is a continuation of a monthly series highlighting the top net payout yield stocks that was started in June (see article ). The series highlights the best stocks for the upcoming month. Please review the original article for more information on the net payout yield concept. November Returns Below are two charts highlighting the monthly returns of the top 10 stocks from November (see original list here ). Due to limitations with YCharts, the chart was broken into the Top 5 and Next 5 lists. Read the full article at Seeking Alpha. Disclosure: Long AMP, COP, DTV, GS, KSS, MSI, NLY, WLP. Please review the disclaimer page for more details. 

Is Baidu Falling Off The China Cliff?

Through April of this year, Baidu, Inc. (BIDU) was one of the hottest tech properties in the investment world. The stock of the leading Chinese language internet search provider reached close to all time highs around $150 and a market value of $55B. Now the stock appears to be falling off the China cliff. Not only is the stock facing less and less investor appetite for Chinese stocks, but now the fears are growing that all Chinese stocks face delisting possibilities due to audit issues. While the S&P 500 remained close to recent highs on Wednesday, Baidu again plunged to a new 52 week low. Other issues continue to pop up over the conversion to mobile reducing the click through rate (CTR) and more competition from Qihoo 360 Technology (QIHU) . All of these issues have pushed the stock down to a very cheap valuation with a PEG near 0.5. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Invest In Private Companies On The Cheap Via GSV Capital

In the past, we have been very critical of the IPO process. In 2011, the Chinese technology firms soared 100% above the IPO range and left initial public investors with considerable losses in a few months. In 2012, the social media stocks blew up after investors in the public markets paid considerably above the IPO price. In both cases, the IPO process signaled the top in these hot sectors leaving the public holding the bag as the insiders exited the firms. Now GSV Capital Corp (GSVC) allows regular investors to participate in the potential insane gains of the IPO process. Instead of needing millions of investment capital, GSV allows investors to "hire" a management team to scout out the top private investments and diversify the risk via 40+ companies. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Important Dates For Document Security Systems

--> For existing investors and those seeking a new patent stock, Document Security Systems, Inc (DSS) offers a potential homerun opportunity. The previous article, Document Security Systems Has Significant Patent Monetization Plans , offered a glimpse at the potential in the stock. The real key for the stock will be the execution of those plans. DSS is a leading developer and integrator of cloud computing data security, Radio Frequency Identification (RFID) systems and security printing technologies that prevent counterfeiting and brand fraud. With the stock lingering around 52-week lows around $2.70, investors still have the opportunity to purchase the stock below the merger and private placements levels. That price won’t last over the next few weeks and months if the company starts executing on target dates whether with the patent cases or the merger. Catalysts The company has several major catalysts that could push the stock up starting with the Motion to Transfe

Manitowoc Remains Intriguing Though Not A Favorite

Manitowoc Company Inc. (MTW) closed out last week trading at the 6-month high levels of $15. While the market envisions the company as a crane manufacturer that competes with Terex Corporation (TEX) , it currently obtains higher operating income from the food service division. The company currently has a mark cap of $2B and only trades at 5x the trailing twelve months EBITDA of nearly $400M. With limited operating margins in the crane division, the company has yet to see any rebound from the global financial crisis. The company faces similar margin issues as Terex in comparison to a mega-cap like Caterpillar (CAT) . In the last few months, a shift is occurring as stocks focused more on construction equipment have performed better than ones with mining exposure. Read the full article at Seeking Alpha. Disclosure: Long MTW and TEX. Please review the disclaimer page for more details. 

Staples Fires Warning Flare To 3D Printing Market

On Friday, Staples (SPLS) announced that it intends to launch a service providing 3D printing capabilities at stores in the Netherlands and Belgium beginning in Q113. While private companies such as Shapeways already provide the ability for designers to create and market 3D printed products, it doesn't have a store in every major city where customers can pick up the products. Staples is already a leading provider of printed items so this was only a natural extension for the company. Honestly, it already seems odd that 3D printing demand has started to explode, yet the majority of household technology companies aren't involved. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Is Splunk Finally A Value?

With the market typically favoring dividend stocks over growth stocks, Splunk Inc. (SPLK) remains a conundrum trading at roughly 12x forward revenue estimates. While the company has huge growth potential, analysts only expect 35% growth next year that wouldn't normally warrant such a high valuation. The company provides a leading software platform for real-time operational intelligence. In essence, the company is leading the "Big Data" revolution by offering software tools for analyzing the incredible amount of data created on a daily basis. Back in the summer, the valuation didn't support the growth rate. After a sell-off in October, does the stock finally offer a good value? Read the full article at Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details. 

Facebook Upgrades Mask Real Issues

Back in mid-November, it appeared that Facebook (FB) was headed to the teens for good as investors became very pessimistic regarding the stock. Along came the much-expected massive stock lock-up on November 14th and the market was surprised to see the stock soar instead of plunging to new lows. Within weeks, the stock soared from a low around $19 to $26.15. An incredible 35% surge for a stock left for dead. A major reason for the leader in social media surging was three analysts increasing price target this week. What has made analysts so bullish on a stock that recently traded as low as $17 to only be upgraded once the stock hit $24? The stock remains a favorite short candidate of us, but our firm has been on the sidelines waiting for a better entry point after the market became too bearish based on the lock-up issues and the mobile monetization fears. See our previous articles here . Note the comments section has been full of warnings that the lock-up might trigger a bottom. R

McMoRan: Investment Remains Intact Despite Mechanical Issues

McMoRan Exploration Co. (MMR) shares plunged on Monday after the company reported more mechanical issues with the hopefully prolific Davey Jones No. 1 well. Investors had expected results from this well over a year ago, but problems continue to frustrate all involved in this historic drilling effort. The company is attempting to lead the world in ultra-deep drilling in shallow waters off the Gulf of Mexico. It has numerous exploratory and development wells in the sub-25,000-feet zones. Investors interested in the stock should heed warnings from the CEO, Jim Bob Moffett, who was quoted in a recent Bloomberg article as saying: "People call us pioneers. Well, that's great, I guess, (though) some people say pioneers end up with arrows in their back." The huge expense to drill the Davey Jones and the shrinking liquidity levels have naturally made investors concerned about a potentially predatory financing to complete the ultra-deep drilling program. The concern was large eno

Main Street Capital's Dividend Isn't 'Special' Enough

Just about every company paying a dividend yield has had extremely strong stock gains over the last year. Main Street Capital Corporation (MAIN) has been no exception to this rule. Though the company continues to raise the dividend, the current yield has dropped to 6%. The company is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Now that the company has gained 69% over the last year, the question remains whether investing in a BDC that only pays a 6% dividend is worth it. The company has a primary focus in the lower middle market that has a favorable investment opportunity as fewer lenders have competitive offerings for this sector after the financial crisis. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Does Carrizo Oil & Gas Confuse Investors Too Much?

After reporting earnings back on November 6th, Carrizo Oil & Gas, Inc (CRZO) plunged over the next week. While the company beat earnings estimates, the market was clearly disappointed with some of the reduced production estimates even if it was due to previously announced joint ventures. The company is an oil and natural gas exploration and production company focused on the shale plays: Eagle Ford, Niobrara, Marcellus, and now the Utica. One has to wonder if Carrizo isn't running into some of the investor's frustrations as with Halcon Resources (HK) and SandRidge Energy (SD) . The numerous joint ventures along with previous sales of Barnett Shale assets make the company difficult to value. With Wall Street focused specifically on quarterly production growth numbers, the constant shifting of assets leads to confusion. Read the full article at Seeking Alpha. Disclosure: Long CRZO. Please review the disclaimer page for more details. 

Savient Pharma: Still Struggling To Grow KRYSTEXXA Sales

After reporting Q3 earnings, Savient Pharma (SVNT) plummeted back to a $1 from the meteoric rise to nearly $3 during the quarter. The company reported disappointing sales numbers for the promising gout drug and failed to break out one-time costs to provide investors a clearer picture of the 2013 earnings view. As written in a previous article, Savient Pharma: The Pharma Rising From The Dead, the company was able to complete a restructuring that provided time to build the revenue base. While all of those moves left the company better equipped to survive long enough for the promising new drug to thrive, Savient has yet to prove to the market that the drug will ever meet the original estimates. Will the lowered cost structure even be sufficient enough to survive? The company is a specialty biopharmaceutical company focused on developing and commercializing KRYSTEXXA (pegloticase) for the treatment of chronic gout in adult patients refractory to conventional therapy. Read the full artic

Document Security Services Significant Patent Moneitzation Plans

When Document Security Systems, Inc (DSS) announced plans to merge with Lexington Technology Group, Inc (LTG), the company signaled a shift in business plans to focusing on monetizing IP assets. With DSS in the process of a lawsuit against over misappropriated trade secrets and breached confidentiality agreements, the merger with a manager of IP assets appears to provide benefits to both shareholder grou ps. DSS is a leading developer and integrator of cloud computing data security, Radio Frequency Identification (RFID) systems and security printing technologies that prevent counterfeiting and brand fraud. With the LTG merger, the company plans on becoming a dominant patent monetization company with the goal of being the Blackstone Group LP (BX) of the sector. DSS Q3 Highlights Below are the highlights from the Q3 earnings report: Revenues for Q3 2012 were $4.2 million, a 15% increase over Q3 2011. Gross profit for Q3 2012 was $1.5 million, a 20% increase over Q

Buying Alongside Halcon Resources Insiders

Ever since the old Petrohawk management team purchased Ram Energy and invested millions of dollars last December, analysts have suggested buying the new Halcon Resources Corporation (HK) . Unfortunately, unless investors bought during the first two days, anybody holding now is under water. In essence, any investors buying the stock this year have lost money. The domestic land E&P firm is building positions in leading unconventional shale plays, such as the Eagle Ford, Bakken, Utica, and the Tuscaloosa Marine. Investors now though get the option of following those insiders who made significant purchases in the $5 area last week. Oddly though, after a strong surge Tuesday on the news of the insider purchases, the stock has started sinking again. Should investors jump in with the insiders or dump the stock? Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Glu Mobile Rebounds On Insider Purchases

Glu Mobile (GLUU) has absolutely plunged the last few months as the mobile game developer struggled with a slew of failed games during Q3. Unfortunately investors continue to forget that short-term failure shouldn't lead to the outright collapse of the stock. Long-term valued can still exist. The company still expects over $100M in revenue next year and appears to be setting up a premier development platform. So why do investors continue to sell growth stories into oblivion? This company reached a market value below $150M yet recent deals for fast growing companies have hit 10x revenue. 6-Month Chart The stock slumped from $5 to $2 based on the game failures during Q3 that lead to 5 games being delayed during Q4 to allow the new President to review the monetization plans. Considering a director bought nearly $10M worth of shares back in early October at around $3, why should the new purchases prop up the stock nearly 10% today? Maybe it shoul

Westport Catalysts Remain Too Far Away For Investors

Westport Innovations, Inc. (WPRT) remains a leading way to invest in the transition to natural gas as a transportation fuel. As previously noted, the market is no longer impressed with the growth rate of this once market darling. The company expects to benefit greatly from the building of the natural gas highway by Clean Energy Fuels (CLNE) and a new engine from the Cummins Inc. (CMI) joint venture, though in both situations the catalyst remains months away. The company is a global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and renewable natural gas (RNG) fuels. Prior to the recent quarterly report, Westport dropped revenue expectations for 2012 from greater than 50% growth to a still strong 30% growth rate. These reduced numbers, while remaining strong, unfortunately point to higher than expected losses into 2013. All signs point to a strong future as US and Chin

SandRidge Energy: Should Tom Ward Go?

On first thought, the announcement by TPG-Axon that SandRidge Energy (SD) should fire the CEO that founded the company and brought it to this position seemed ridiculous. After more research, the investor might just have a point. The activist investor submitted a letter last Thursday arguing that the Board of Directors should be realigned and the CEO should resign. SandRidge is an oil and natural gas exploration and production company that primarily focuses on the Mid-Continent, Permian Basin, and Gulf of Mexico. CEO Tom Ward has become a prominent leader in the oil exploration field making it further unlikely that he will be ousted. He was an original founder of Chesapeake Energy (CHK) that left to start SandRidge. The combined experience suggests that he has the knowledge to make this company successful. Read the full article at Seeking Alpha. Disclosure: No positions mentioned: Please review the disclaimer page for more details. 

Windstream's 12% Dividend Remains Solid

When Windstream (WIN) reported earnings last week, investors took the stock down to 52-week lows over concerns the company wouldn't have the ability to pay the dividend going forward. The local telecommunications provider missed earnings yet again, but more disappointing is that capital expenditures continue to creep higher. In order to maintain that juicy 12% dividend, the company must produce enough free cash flow to cover the cash distribution. Lately that equation has come into question even with an increasing revenue base as capital expenditures have soared. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The Taxing Situation At Weatherford

Over a year after announcing accounting problems in the tax department, Weatherford International (WFT) continues to struggle to complete the restatement. For investors, the most boggling aspect of the tax restatement is that the company moved headquarters to Switzerland in order to reduce tax liabilities, yet the company continues to incur the highest in the industry. The international oil services provider guided to an effective tax rate of 45% for all of 2012. More importantly the guidance for 2013 is for the effective tax rate to drop to a more historical 34% rate. The real improvement will come in later years as the company finally benefits from expected reduced rates. So how should investors value the earnings of a company with temporarily high tax rates? The market spoke with dramatically lower stock prices to the tune of a 52-week low. Read the full article at Seeking Alpha. Disclosure: Long WFT. Please review the disclaimer page for more details. 

Mobile Monetization Index - November

This article is the second in a monthly series to analyze the stocks at the forefront of the monetization of the trend towards mobile data traffic. The original mobile monetization index highlighted the leading public companies. The concept was created as the market continuously lumped the new mobile stocks into the original failures of the relatively old companies such as Facebook (FB) and Google (GOOG) . Recently Facebook reported a huge improvement in the monetization of mobile traffic providing hope for the sector A range of companies benefiting from this shift to mobile traffic continues to grow. The industries range from Advertising to Real Estate to Travel with varying degrees of success and profits. Read the full article at Seeking Alpha. Disclosure. Long AAPL, GLUU, VELT. Please review the disclaimer page for more details. 

SodaStream Commercial - Set The Bubbles Free

SodaStream (SODA) just released a new commercial today attacking the likes of PepsiCo Inc. (PEP) and The Coca-Cola Company (KO) . As a long time investor in SODA my only hope is that it doesn't attract the angry of the sleeping giants. SODA doesn't have the balance sheet to fend off these companies yet. Though a buyout around $100 would be nice. lol See the new commercial below: Definitely an innovative story that should get the attention across regarding the ability to save the environment in the process of using the soda maker. One advantage to SODA is that the product can also be cheaper providing less incentive for PEP or KO to compete against them. Disclosure: Long SODA. Please review the disclaimer page for more details.