Out Fox The $treet

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...

SodaStream (SODA) finally has  a bullish looking chart after a disastrous last year. The home beverage maker traded as high as $80 last year, but it now only fetches $37. This though the stock trades at a forward PE of 13 with a long term growth rate that will exceed 25%. While the market continues to debate whether this concept is just a fad or a long term growth story, the company has quiet but together some impressive growth and forecasts. Regardless of ones view on the long term prospects of the company, the stock bounced nicely off the 200ema this morning right around $36.40. For now, that is a good sign that SODA can be purchased. Figure - 9 Month Chart on SODA The stock made a similar run to $48 back in February, but eventually blew up and traded down to $29 by early May. Investors should understand that trading at just the growth rate of around 25 would lift the stock to $67.50. Even in this market, stocks with that growth rate are trading at...

Back on February 29th, SodaStream (SODA) announced Q411 results and provided a little nugget that apparently the whole market missed. The company announced a change to reporting in the U.S. currency (USD) effective January 1st, 2012. Anybody following this company has known that it has reported in euros (EUR) and provided a translation to the USD. This is common of foreign companies. The odd part though is that popular finance websites such as Yahoo Finance (see below Figure 1), Reuters, and probably most others continue to report the analyst estimates in euros. Read the full article on Seeking Alpha. Disclosure: Long SODA. Please review the disclaimer page for more details. 

SodaStream (SODA) reported Q4'11 earnings this morning that vastly disappointed the market. The numbers were very solid and the guidance was much higher than estimates, but the market tends to hone onto the weakest numbers with SodaStream when valuing the company. The weakest number in Q4 was the meager 8% soda maker sales increase. Though the company has been clear that a lot of retailers pulled sales into Q3 accounting for the 60% increase last Q, the market just decides to act ignorant and sell the stock hard. My guess is that a ton of shorts chose to push the 'negative' number hard in order to exit a short position or to cause panic for larger gains. One analyst even went so far as to suggest that soda maker sales were decelerating which is a clear blatant misstatement. Every data point suggests that SodaStream distributors sold out for the holiday period, pulled sales into Q3, and management guided up for 2012. None of these data point suggests a problem down the ...