Out Fox The $treet

Based on the chart and earnings of associated stock Green Mountain Coffee (GMCR) , it sure appears that SodaStream (SODA) is about to explode higher. SodaStream's stock was crushed mid-year dropping from a high around $80 to a low around $30. Why? All due to very conservative guidance from a management team that continues to UPOD almost similar to the Apple (AAPL) history.  SodaStream has beaten estimates by nearly 60-80% a quarter since going public and naturally gave very conservative guidance for Q4. Why then did analysts completely take the number given by management? Amazingly analysts have actually guided towards a drop in earnings from $.25 to $.21 in Q411. That also equates to a 50% drop from Q311. How is that possible when Q4 is such a huge quarter in the US? It is very puzzling to us as well. As with Apple for years, analysts have quickly forgotten how management lead them towards the $.27 estimate in Q3, even though the company produced $.42. This brings us to ...

SodaStream ( SODA )  reported  an impressive 50% gain in Q1 revenues to roughly €45.1M. More importantly, SODA reported a 141% increase in adjusted net income to €5.3 Million. Impressive growth numbers, but the debate rages over whether SODA is a fad or a future consumer powerhouse. See  Cramer vs Greenberg challenge  on CNBC to see the debate. To back up a little, SODA is a leading manufacturer of home beverage carbonation systems. These systems provide an easier and greener way of consuming soda at home. According to the taste test, the SODA product even tastes better.... Read the full article at Seeking Alpha .  Disclosure: No position in any stock mentioned. Please read the disclaimer page.