Why SodaStream Is Ready to Go Flat

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 an alarming one-star ranking.

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

SodaStream facts

Headquarters

Airport City, Israel

Market Cap

$1.0 billion

Industry

Household appliances

Trailing-12-Month Revenue

$386.2 million

Management

CEO Daniel Birnbaum (since 2007)
CFO Daniel Erdreich (since 2007)

Trailing-12-Month Return on Equity

17.6%

Cash/Debt

$50.7 million / $0

Competitors

Vikingsoda AB

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

On CAPS, 16% of the 679 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Ianwanguru, succinctly summed up the SodaStream bear case for our community:

I think the idea is losing its fizz. This is a one-trick pony with a couple different similar competing products. Unless they can get distribution agreements with real name-brand flavors to put main-line syrups in their packaging, I don't see a good differentiator on something that's ultimately a novelty product to begin with.

Of course, this short pitch doesn't even come close to telling the entire story of SodaStream. You're in luck, though. The Fool's brand-new premium report on SodaStream tells all sides of the story for one of the most compelling growth plays in the market. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (5) | Recommend This Article (0)

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 January 30, 2013, at 3:41 PM, disappointed666 wrote:

    Oh look, here comes Motley Fool shooting down a stock after convincing all it's members to buy it... again.

  • Report this Comment On January 30, 2013, at 4:21 PM, englishjames wrote:

    As much as the Fool has educated, he, the Fool, negates much of the good when I read the article's final paragraphs, a shameless SALESPITCH to acquire more information...So to all investors who read these articles, yep, take the "advice" with a healthy dose of skepticism, unless, or course, there is actual substance to consider...

  • Report this Comment On January 30, 2013, at 4:25 PM, bestwaytoriches wrote:

    Brian,

    Over the last 2 week MF have been pumping Soda.

    I bet there been 30 article telling readers to buy. When are you going to get the story straight.

    Another one is ALU 20 article pushing it now just got smashed.

    Just today 3 articles on RAD are you guys now long on the value play RAD?

  • Report this Comment On January 30, 2013, at 6:02 PM, dapperone wrote:

    SODA is very heavily shorted, and that combined with continuing good numbers means positive momentum as the shorts continue to be squeezed. It isn't a novelty product; it's a practical product that saves money, shopping time, and storage space. It also has obvious environmental advantages and allows the consumer to adjust the flavor of beverages to individual tastes.

  • Report this Comment On February 04, 2013, at 1:22 PM, notthisagain wrote:

    When I read the stories about 'make your own soda' I think of 1950's 60's and Kool Aid and Fizzies. I wondered why they were not around anymore? Seems that they are. Fizzies 12 tablets for $3.95. No counter appliance needed. Take them with you to beach, park, hike. Why did they drop out of favor? Mix KoolAid with bottled Tonic water or soda water. Or as we do Cranberry juice with Tonic water. After the 'New' wears off is this like the crockpot, air corn popper, chopping and diecing machines that fill the appliance cabinets? Thats buying a lot of canned soda to recoup $100 plus. The store promo sample that I tasted of Orange SodaStream was very heavy in artificial sweetner, a taste I do not like at all.

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