Out Fox The $treet

The sky appears to be the limit for SodaStream ( NASDAQ: SODA     ) , but investors would never know that based on the market average multiples applied to the stock. While SodaStream provides fast growth and unlimited potential, the stock trades at pedestrian multiples, including less than 19 times its 2013 earnings estimates and 13 times its adjusted EBITDA forecasts. Remember that beverage industry giant Coca-Cola  ( NYSE: KO     ) trades at 20 times its earnings, and related home beverage market participant Green   Mountain Coffee Roasters ( NASDAQ: GMCR     )   trades at 21 times its fiscal year 2013 earnings. SodaStream remains the unquestioned leader in home beverage carbonation systems, yet the market tends to stress on the smallest of details. In the last quarter, it was the lackluster reported flavor sales growth of only 7%. Remember that Coca-Cola would be happy with even 7% growth considering the e...

While shareholders typically cheer the inclusion of their stock in a major index such as the NASDAQ-100 ( QQQ ) , research and history tells a different story. Not only is inclusion typically based on a few years of excellent results, but also the process of being included in index funds can create a temporary peak in the stock. In the case of Green Mountain Coffee Roasting ( GMCR ), the specialty coffee and single serve beverage innovator had soared over the last year and comes amidst continuing questions regarding accounting procedures. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

As with any Israeli company, the threat of war in the Middle East always causes investors to pause on investments in the region. Recent threats of military action in neighbor Syria only add to those fears. Possibly this is part of the reason that, despite all the positive news, SodaStream ( NASDAQ: SODA     ) continues to trade at market low multiples, even compared to slower growing Green Mountain Coffee Roasters ( NASDAQ: GMCR     ) and Monster Beverage ( NASDAQ: MNST     ) . While threats of war probably won't ever go away, the market for home beverage machines has plenty of catalysts to reach its goal of $1 billion in revenue by 2016. Read the full article here . Disclosure: Long SODA. Please review the disclaimer page for more details. 

As quickly as SodaStream (NASDAQ: SODA ) finally gained some strong interest from the market, the analyst community smashed the stock with downgrade after downgrade. The company continues to under promise and over deliver, with results beating expectations quarter after quarter. The stock, though, has plunged $18 in the last month and now trades at less than its growth rate that has been reaching over 30% lately. The company is a more » Disclosure: Long SODA. Please review the disclaimer page for more details. 

The old saying, "where there's smoke, there's fire" applies mightily to the news on SodaStream ( SODA ) today. According to an Israeli website , PepsiCo Inc. ( PEP ) is exploring a deal that values the company at nearly $2 billion . The company is a leading manufacturer of home beverage carbonation systems sold at major retailers around the world with a primary target on growing in the Americas where soda usage is significantly higher than in Western Europe. The reports suggest that SodaStream is attempting to engage in a discussion with Coca-Cola ( KO ) in order to obtain the highest potential valuation. With so many details, it suggests that some form of discussion must be taking place. Typically though, the real facts get confused during the rumor spreading phase so a denial by PepsiCo might just be an indication of confusion on the actual suitor instead of a lack of a deal. Read the full article at Seeking Alpha. Disclosure: Long SODA. Pleas...

This article is the second part of a series focused on the stocks being removed from the Nasdaq-100 Index. The first part highlighted the stocks being removed and the research behind the benefits of investing in these stocks. This one will focus on analyzing which stock might provide the best investment opportunity. Valuation Metrics One way to ascertain the stock that provides the best value at the current levels is more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The dramatic rise and fall of Green Mountain Coffee Roasters (GMCR) has been interesting to watch from a distance. The stock initially soared to nearly $116 last year providing a P/E over 40x the expectations for 2012. Now with the 40% after hours plunge to below $30, the stock only trades at 12x the updated 2012 earnings guidance. After hours, the company reported Q212 results that largely disappointed the market. Though earnings were in-line, sales were dramatically lower than expected and earnings guidance was slightly lowered for the year. These dramatic swings in stock price highlight the emotional and inefficient nature of the markets. Too much focus is placed on the guidance or analyst estimates instead of the actual results. The company reported 37% sales growth in Q2 which is actually very attractive for a 12 multiple. Even the $2.5 earnings estimate for 2012 would still provide over 40% earnings growth for this company. The stock though isn't so forgiving. Read the ful...

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.