Why SodaStream, Portugal Telecom, and VelocityShares Daily 2x VIX Set New Lows Today

These three stocks hit new yearly lows on Tuesday. Find out why.

Jul 1, 2014 at 7:40PM
Longview

Tuesday was a good day for stock market investors, as several major-market benchmarks reached new all-time highs. With investors deciding to commit to the five-year-old bull market to start off the second half of 2014, advancing stocks greatly outnumbers decliners, and the number of stocks setting new yearly highs numbered in the hundreds. Yet even amid the strength in the market today, SodaStream (NASDAQ:SODA), Portugal Telecom (NYSE:PTGCY) and VelocityShares Daily 2x VIX ST ETN (NASDAQ:TVIX) declined to their lowest levels in a year or more today.

Soda
Source: SodaStream.

SodaStream fell another 1.5% today, bringing its total loss for 2014 to around 30%. Throughout the past year, SodaStream has had plenty of promise with its at-home carbonation systems, but missteps in its marketing efforts during a tough promotional environment in the most recent holiday season took their toll. In addition, competitive efforts from elsewhere in the space have investors wondering if SodaStream can emerge victorious, especially as well-established beverage giants take sides with SodaStream's rivals. If the company can manage to correct those mistakes and take advantage of still-strong demand for its machines, then the stock could bounce back, but SodaStream will have to move quickly to hang onto its leadership role in the cold-drink space.

Portugal Telecom dropped by almost 6% as the telecommunications company had two of its directors leave the board. Portugal Telecom is still working with Brazilian phone-company Oi to merge, with the intent of creating a company that will span across the Atlantic and allow Portugal Telecom to compete against rivals in Spain and Mexico for the lucrative Latin American market. With the European economy still struggling, emerging markets represent an important growth opportunity for Portugal Telecom, and investors hope that the shared language with Brazilian customers could help boost the merged company's prospects. But some now fear that the directors' departure could indicate problems with the merger, and that could prove problematic for investors.

For the VelocityShares ETN, today's 5% drop merely marks the latest sign of investor complacency in the market. As stocks have risen, the S&P Volatility Index, also known as the Fear Index, has sunk to multiyear lows as investors get used to the lack of substantial downward moves. In this case, the VelocityShares ETN is leveraged, making its losses even more dramatic. Until the next market correction starts making investors fearful about their gains again, the VelocityShares ETN will have a tough time making much progress from its current low levels.

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett said this emerging technology is threatening his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping on to one company that could get you the biggest piece of the action. Click here to access a free investor alert on the company we're calling the brains behind the technology.

Dan Caplinger owns shares of Berkshire Hathaway. The Motley Fool recommends and owns shares of Berkshire Hathaway and SodaStream. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers