Why I Just Bought Shares of SodaStream

Shares of SodaStream (NASDAQ: SODA  ) have plunged 14% since the at-home carbonation specialist posted mixed quarterly results a little more than one month ago.

But in the following video, the Fool's Steve Symington reminds investors why SodaStream's results weren't nearly as bad as they seemed and why the stock looks incredibly cheap at today's levels -- so much so, in fact, that he decided to take the opportunity to buy shares of SodaStream for the first time in his personal portfolio earlier this week.

Check out the video below to get Steve's full take, then feel free to weigh in to let us know whether you think SodaStream is a buy now.

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Read/Post Comments (9) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On December 06, 2013, at 10:27 AM, englishjames wrote:

    Steve, excellent presentation...For future investors, it must be stressed that SODA requires a generous timeline...It SHOULD reward patient investors well, but there seems to be an ignorance the stock has yet to hurdle...Soda Caps are convenient but I don't really expect them to add to the bottom line. Pouring syrup really isn't rocket science you know. U.S. household penetration...that's the key to a hoped-for triple before 2018. Again, nice report, too bad Longbow shot its arrow this morning, but the stock should overcome this quickly...

  • Report this Comment On December 06, 2013, at 12:11 PM, foxxydrummer wrote:

    Boycott Sodastream until the zionists stop their ethnic cleansing of the Palestinians. Boycotts worked to bring down apartheid in South Africa, we can use the boycott to stop apartheid in Palestine.

  • Report this Comment On December 06, 2013, at 12:17 PM, larchmont1 wrote:

    Steve: Good detail to help cut through the noise. SODA's business looks strong. I enter positions in tranches. Bought my first tranche in early October. Stock is down 15% from then. I have been considering adding to my position. Your analysis provided the catalyst. I just doubled my position. Your presentation explains very clearly why the recent drop in stock price is an opportunity. The negative stock price reaction is at odds with the positive and improving business picture (retail store penetration, CO2 sales, flavor sell-out, etc). I still have dry powder for SODA and, if the stock price continues to drop on no-news, I will add some more. Thanks for taking the time to share your views.

  • Report this Comment On December 06, 2013, at 1:15 PM, TMFSymington wrote:

    @englishhjames and larchmont1, Thanks, and it's my pleasure. I've been waiting for a decent entry point for some time, so was happy when the most recent report provided it.

    Fool on!

    Steve

  • Report this Comment On December 08, 2013, at 9:31 PM, scottohiocpa wrote:

    Well, I was curious about SODA after the many MF members wrote about it. So, I bought a unit for $50 at Target on Black Friday to see how it worked. First, it will cost $1.70 to make 2 liters of soda - more than the $1.00 I pay when Coke goes on sale. Despite pressing the "carbonate" button three times, the soda tasted semi-flat. I could carbonate more than the instructions say, but then it would cost even more than $1.70 per 2 liter. The syrup bottle seems convenient since there is a built in measure in the cap, but the darn stuff drips all over the place and makes a mess. I can only make 1 liter at a time unless I buy extra bottles. How much does it cost Coke to make a bottle? Certainly not the $20 for two SODA bottles they sell at Target.

    I am guessing sales will go up as lots of people get one for Christmas, and for a short time, they will buy refills. Then when the novelty wears off, they will put it the closet or sell it at their next garage sale for a few bucks.

  • Report this Comment On December 09, 2013, at 9:13 AM, djplong wrote:

    Scott points out the reason I didn't buy. When the syrup can be added automatically, they'll have something even more compelling. As it is, I have to open the bottle (and let the "soda goes flat" process start) to add the syrup.

  • Report this Comment On December 09, 2013, at 10:39 AM, scottohiocpa wrote:

    I forgot to mention about the carbon cylinder. I'm sure many of you have had to get your propane tanks filled for your gas grill. It wastes time, but you have to do it if want to grill at home. Well, you will have to go get the CO2 refilled for SODA or buy overpriced ones for $30 at the store. Who is going to that? Not many people would.

  • Report this Comment On December 11, 2013, at 7:43 AM, biggbear1 wrote:

    Steve

    Thanks for the data points on SODA. Clearly the market thought a 7% sell in for flavors spelled trouble whether inventories were too high at customers or the product just was not going to maintain growth and market penetration. So we need to see inventories clear out this Q and hope for a better sell in number in the mid teens at least if not low 20's.

    I'm a buyer at 61 and again if allowed at 52.

  • Report this Comment On December 12, 2013, at 1:46 PM, morgamax wrote:

    I bought at 63 and again at 53. SODA is a great buy. So much growth potential in the US and internationally. I have been using their products for 10 years since I was first introduced to it living in Sweden.

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