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2-Star Stocks Poised to Plunge: SodaStream?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home beverage carbonation system specialist SodaStream International (Nasdaq: SODA  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SodaStream's business and see what CAPS investors are saying about the stock right now.

SodaStream facts

Headquarters Airport City, Israel
Market Cap $754.7 million
Industry Household appliances
Trailing-12-Month Revenue $345.6 million
Management CEO Daniel Birnbaum (since 2007)
CFO Daniel Erdreich (since 2007)
Trailing-12-Month Return on Equity 15.9%
Cash/Debt $56.6 million / $0
Competitors Vikingsoda AB

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 19% of the 595 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, meeyatch69, touched SodaStream's rather faddish qualities:

seems like there might be a reality check for the at home soda biz. Like most environmental efforts, after the shine wears off the extra effort for the perceived benefit becomes a pain in the butt. As for the health/taste benefit, there are adequately cheap options available that are much more convenient. My mother has a revolving stream of new gadgets on her counter top. After the shine wears off, the replenishing of flavor bottles will stop. This doesn't bode well for the razor/blade model Sodastream banks on.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of SodaStream International. Motley Fool newsletter services have recommended buying shares of SodaStream International. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (3) | Recommend This Article (3)

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 August 24, 2012, at 3:41 PM, steliejim wrote:

    "the extra effort for the perceived benefit becomes a pain in the butt. As for the health/taste benefit, there are adequately cheap options available that are much more convenient." I thought Motley Fool had higher standards than this absurd "article." Self-admitted shortsellers on the Yahoo message board for SODA make more sense than this.

    Tell me how doing nothing more than exchanging CO2 cartridges and buying mixes (with outlets for doing so already convenient and increasing all the time) are more burdensome than having to deal with the mess of empty bottles and cans laying around and the hassle of recycling them--unless you are also lazy and irresponsible.

  • Report this Comment On August 25, 2012, at 1:40 AM, trecer wrote:

    Agree with steliejim. Sodastream's product is not something people are buying and pitching a few months later. They use the product consistently and for the long term.

  • Report this Comment On September 28, 2012, at 2:23 AM, haysdb wrote:

    We use our Sodastream every day. We don't drink soda, but just sparkling water with a squeeze of fresh lime. I haven't had a soda in months.

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Related Tickers

6/18/2013 4:00 PM
SODA $70.55 Down -0.47 -0.66%
SodaStream CAPS Rating: ***

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