Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SodaStream International Ltd. (NASDAQ:SODA) were bubbling higher today, gaining as much 17% and closing the day up 11% on news that Starbucks (NASDAQ:SBUX) may take a stake in the countertop soda-maker.
So what: SodaStream shares jumped last week on reports in an Israeli newspaper that a major beverage company was interested in investing in the DIY soda-maker. Today, another Israeli paper said that SodaStream was in advanced talks to sell a 10% stake to Starbucks at a valuation of $1.1 billion, or a 30% premium over yesterday's closing price. Neither company would comment on the deal.
Now what: For years, investors have suspected that SodaStream would be a ripe takeover target for a soda giant, and those expectations have only heightened since Coca-Cola took a 10% stake in Keurig Green Mountain in February. A partnership with Starbucks seems to make sense, as the coffee chain has been branching out into other drinks including tea and natural juices through acquisitions of Teavana and Evolution Fresh. Starbucks CFO Scott Maw also said in March that the company had been testing "handcrafted" sodas, receiving an overwhelmingly positive response. A deal with SodaStream would give Starbucks easy access to soda sales not just in stores, but also in the home.
You can stay up date on this developing story by simply adding SodaStream to your Watchlist. Just click right here.
Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.
Jeremy Bowman owns shares of SodaStream. The Motley Fool recommends Coca-Cola, Keurig Green Mountain, SodaStream, and Starbucks; owns shares of Coca-Cola, SodaStream, and Starbucks; and has options on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.