SodaStream: Is It Finally a Buy?

Editor's note: The earnings presented at :20 are in the euro value, the correctly converted USD values are $0.52 and $0.35, respectively. The remainder of the figures in the video are correctly presented in their converted values.

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Austin Smith and Andrew Tonner own no shares of the companies mentioned above. The Motley Fool owns shares of Best Buy and Costco Wholesale. Motley Fool newsletter services have recommended buying shares of Costco Wholesale, SodaStream International, and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended writing covered calls in Best Buy. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (7) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 23, 2011, at 12:34 PM, lucy0007 wrote:

    I was looking forward to the video. However, the people who did this video need to check their facts. Earnings they talk about in the video are in Euros and not CENTS. The company reported .42 Euros versus the expected .25 Euros. This is actually .56 cents versus expectation of .35 cents. Further, they say current PE is 23 and next years PE is 23??? What planet are they from. SODA forward PE is about 11 based on next years earnings estimate.

  • Report this Comment On November 23, 2011, at 1:42 PM, TMFBWItime wrote:

    @lucy0007

    SodaStream's forward P/E is currently 20 - http://finance.yahoo.com/q/ks?s=SODA+Key+Statistics

    At this time of this video being filmed is was 23.

    You are correct that I mistakenly spoke and inputed the values on the slides in USD, not their actual Euros at one point. However, later in the video you will not the correctly converted USD value, and our discussion of revenue in Euros, not dollars. Thank you for bringing this to my attention. I will put an editor's note in accordingly.

  • Report this Comment On November 24, 2011, at 1:11 AM, docmtc50 wrote:

    I bought into SODA, after much procrasternation, just before their fine August 2011 earnings report and then - badda boom! Lost about half of its price. But, I've hung in there. Not selling. I still think this stock is going to do fine. They have carved out their own little niche and I think this Christmas season, their sales will justify my confidence.

  • Report this Comment On November 28, 2011, at 10:30 AM, landoncz wrote:

    @TMFBWltime

    Yahoo!s forward P/E is either wrong or out-dated, as lucy0007 states. It does not accurately reflect the beats from this year, let alone the growth rate. If you do your own calculations, you will get a conservative sub-15 forward PE. I think that's what lucy was saying.

  • Report this Comment On November 28, 2011, at 3:59 PM, TheDumbMoney wrote:

    Macro Note: SODA is trading as a European stock, which is what it primarily is, based on the source-location of its revenues and earnings. (Hence it being up 8% today on, in my view, Euro-giddiness.)

    Also, I think SODA trades in the neighborhood of 14-17x forward 2012 diluted EPS estimates, denominated in dollars, at today's assumed exchange rates, and depending on what estimate you look at. I could be wrong though, haven't looked at it in a couple of weeks. I would not ritualistically trust Yahoo finance on a stock like this one though....

    Best,

    DTAF

  • Report this Comment On November 28, 2011, at 4:04 PM, TheDumbMoney wrote:

    Pardon me: up 9.78% at the close. Face shredder for the shorts. I'm not convinced it has bottomed yet though: if my macro thesis is correct, this thing doesn't truly bottom until either 1) the Euro crisis is resolved, or 2) (maybe) explosive American growth overtakes the Euro story.

    DTAF

  • Report this Comment On November 28, 2011, at 7:50 PM, TheDumbMoney wrote:

    The company is also facing a potentially semi-antisemitic campaign against it in Sweden, one of its largest markets, which is centered on the fact that one of its primary factories (I think its primary one) is located in an Israeli settlement in the West Bank. While this creates headline risk in the event of a war with Iran in particular, it also creates an opportunity to excoriate the company for participating in Israeli oppression of Palestinians (some of which it employs at this factory).

    Note too that with regard to that Swedish market, Sweden is actually not on the Euro...:

    http://articles.businessinsider.com/2011-11-27/markets/30446...

    DTAF

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