In this video, Blake Bos gives his two cents' worth on SodaStream (SODA +0.00%) as a long-term investment. While the most recent earnings report beat estimates, the stock suffered a sell-off. For the long term, SodaStream is doing some good things. It is building out a manufacturing plant in Israel that should help reduce its dependence on subcontractors that are adversely hurting its earnings. Similarly, SodaStream is building out its distribution network to capitalize on sales of consumables. Lastly, later this summer, SodaStream should roll out a new product with a lower price tag than the current model. Look for a price of around $99 versus $150 for what's on the shelves now. There seems to be demand for SodaStream products, and this new lower-priced product should help drive sales in the last half of the year. All told, the convergence of building out manufacturing and distribution capabilities and, hopefully, growing sales of its lower-priced products should position SodaStream well for 2015-2016.
An Investor's Take on SodaStream Earnings: Building a Future
By Blake Bos – May 9, 2013 at 7:35PM
NASDAQ: SODA
SodaStream International
SodaStream beats earnings and raises guidance. Where is this stock going from here?
About the Author
A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.