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Opinions on SODA?


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2013 Jan 18, 10:03am   68,354 views  164 comments

by Patrick   ➕follow (59)   💰tip   ignore  

My wife bought me a Sodastream water carbonator and I like it because I can make fizzy water for about 30 cents a liter instead of paying $1 a liter in the store. OTOH I was kind of annoyed at their proprietary bottles and connectors which really do nothing more than hold and dispense carbon dioxide, but cost $15 to refill.

I'm getting kind of a good deal, but they're getting a really good deal because I know it can't cost more than $1 for them to refill that thing.

So... instead of being annoyed, I looked up the stock (SODA) and they have no debt, a P/E of 25, and seem to be growing rapidly. I bought some of the stock today. Mistake? What am I missing?

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111   zzyzzx   2014 Oct 1, 4:23am  

New 52 week low today!

$27.85/sh - down by more then 5%!

112   zzyzzx   2014 Oct 6, 11:28pm  

Down in pre-market trading:

$22.60 Down $4.97 (18.03%) 9:25AM EDT

http://www.forbes.com/sites/samanthasharf/2014/10/07/sodastream-shares-plunge-to-all-time-low-on-53-income-decline/

SodaStream Shares Plunge To All-Time Low On 53% Income Decline

Shares of SodaStream International were down close to 18% in pre-market trading Tuesday setting up the stock to open below $23 for the first time ever. The stock’s previously low of $27.44 was hit on Monday as shares were down 42.7% year-to-date before the morning plunge.

In a preliminary earnings report released Tuesday SodaStream estimated its third quarter revenue will come in at $125 million, down 13.5% from the same period last year and more than $25 million short of Wall Street analysts’ consensus call for modest year-over-year growth. The home carbonation system maker says its operating income will be approximately $8.5 million, down 52.8% from the same period last year.

The Israeli company’s 2014 woes began in early January when, in a preliminary earnings release similar to Tuesday’s, it told investors 2013 earnings would be 23% lower than it had forecast earlier. Things appeared to be getting worse in February when Coca-Cola and Green Mountain Coffee announced a partnership to develop an at-home soda making system.

113   Blurtman   2014 Oct 6, 11:58pm  

SODA flat today.

114   zzyzzx   2014 Oct 7, 1:57am  

Blurtman says

SODA flat today.

SODA lost it's fizzle months ago.

115   komputodo   2014 Oct 7, 2:31am  

zzyzzx says

The Israeli company’s 2014 woes began in early January when, in a preliminary earnings release similar to Tuesday’s, it told investors 2013 earnings would be 23% lower than it had forecast earlier.

What's wrong with those israelis? Don't they know that all they have to do is a share buyback? They could buy back every outstanding share except one and then any sales they made would look great on their EPS statement.

116   komputodo   2014 Oct 7, 2:33am  

bgamall4 says

zzyzzx says

Blurtman says

SODA flat today.

SODA lost it's fizzle moths ago.

It is fizz, not fizzle. :)

Fizzle is how Snoop Dog would say it.. Like "Sodizzle losts it's fizzle"

117   komputodo   2014 Oct 7, 2:44am  

bgamall4 says

zzyzzx says

Blurtman says

SODA flat today.

SODA lost it's fizzle moths ago.

It is fizz, not fizzle. :)

Fizzle is how Snoop Dog would say it.. Like "Sodizzle losts it's fizzle"
bgamall4 says

There are times when you have to take a moral stand, you dumb bruin.

An occupation has traditionally been looked upon as a form of slavery.

How easy it is to take a moral stand by not buying a product that you wouldn't buy anyways...It looks good on paper though.

118   zzyzzx   2014 Oct 7, 3:20am  

Down to $21.79/sh

I still want to know if anyone here actually bought this POS stock.

119   zzyzzx   2014 Oct 8, 3:41am  

Down some more:
$20.58/sh Down 0.95(4.39%) 1:39PM EDT

120   FortWayne   2014 Oct 11, 3:09am  

I like their soda machine, but their syrups need serious work. They could be so much better if they improved on that. I'm going to send them an email as a consumer and as a shareholder (ha!).

121   zzyzzx   2015 Jan 2, 9:57am  

Closed under $20/sh!

$19.72

122   zzyzzx   2015 Feb 23, 12:29pm  

Below $18/sh now!
17.92 Down 0.81(4.33%) 3:28PM EST - Nasdaq Real Time Price

123   MAGA   2015 Feb 23, 12:58pm  

I buy cases of soda at Costco from time to time. It usually breaks down to around 28 cents a 12-oz can. I use my Costco AE card which give me 2% off.

124   Blurtman   2015 Feb 23, 1:26pm  

Lately my pee has been coming out carbonated. Is that a problem?

125   zzyzzx   2015 Feb 23, 5:07pm  

Blurtman says

Lately my pee has been coming out carbonated. Is that a problem?

It might help keep your toilet clean.

126   zzyzzx   2015 Feb 25, 7:55am  

Down again!
17.34 Down 1.55(8.21%) 10:53AM EST - Nasdaq Real Time Price

http://www.thestreet.com/story/13058131/1/sodastream-international-soda-drops-today-on-fourth-quarter-revenue-miss.html
SodaStream International (SODA) Stock Drops Today on Fourth-Quarter Revenue Miss

NEW YORK (TheStreet) -- Shares of SodaStream International (SODA - Get Report) fell 8.47% to $17.29 in morning trading Wednesday after the home carbonation product manufacturer reported its fourth-quarter earnings.

Adjusted earnings soared to $7.5 million, or 35 cents a share, from $700,000, or 3 cents a share, from the same period one year earlier. This beat the FactSet consensus estimate of earnings of 17 cents a share.

Revenue dropped to $126.5 million from $168.1 million, which missed the FactSet consensus estimate of $127.1 million. The company cited decreased demand for sparkling water makers and flavors in the U.S. during the holiday season.

127   HEY YOU   2015 Feb 25, 9:26am  

Patrick,
We all gamble trying to make a easy fiat. I spend a $1 on the lottery & never miss by more than 6 numbers.

128   Patrick   2015 Feb 26, 6:48am  

Ah well, it was a fun gamble. They had a few things going for them, like a product that's really useful, but what they did not have was a dividend.

Lesson learned (yet again): never buy any stock that does not pay a dividend.

129   SFace   2015 Feb 26, 7:10am  

The product was not useful. Making your own soda taste nasty and people gave up on it. Hence revenue dropped like a mofo.

But companies with increasing dividends are winners. So dividends can go up or down. If you get the latter , you will lose $$ just as easy.

130   Patrick   2015 Feb 26, 8:52am  

it works perfectly if all you want is fizzy water.

sure, dividends can go up or down, but a company that is consistently paying out a dividend has proved it has some real earning power, and the guts to return some of its cash to the rightful owners, the shareholders. without that, it's much less certain that the company should even exist (from the shareholder's point of view).

money talks.

131   zzyzzx   2015 Feb 26, 10:45am  

I only buy stocks that pay dividends!!! I have no defined benefit pension plan, and never will. My plan is to just buy dividend paying stocks. When I have enough income from them, I can retire, or just not give a shit if I have a job or not.

132   CDon   2015 Feb 26, 6:29pm  


Ah well, it was a fun gamble

I find it remarkable in that during a time when the market went up approx. 30%, you managed to find (and invest in) a stock that lost over 60% of its value. This (and your decision not to buy 15 years ago in Palo Alto) are your only two publicly announced financial moves. Are you always so snakebitten?

133   zzyzzx   2015 May 6, 9:03am  

17.77 Down 1.34(7.01%) 12:01PM EDT - Nasdaq Real Time Price

SodaStream Revenue Falls on Currency Headwinds, Low Demand

134   zzyzzx   2015 Aug 5, 6:42am  

16.46 Down 0.81(4.69%) 9:41AM EDT

Dropping faster than Apple right now!

http://www.marketwatch.com/story/sodastream-profit-sales-fall-below-expectations-2015-08-05
SodaStream profit, sales fall below expectations

SodaStream International Ltd. SODA, -5.64% reported on Wednesday a second-quarter net profit that fell to $960,000, or 5 cents a share, from $9.2 million, or 43 cents a share, in the same period a year ago. Excluding non-recurring items, such as restructuring-related charges, adjusted earnings per share came to 17 cents, below the FactSet consensus of 31 cents. Revenue fell to $99.8 million from $141.2 million, below the FactSet consensus of $106.3 million, with sales in all geographic regions and in all product categories declining. Changes in currency rates reduced revenue by $16.9 million. Gross margin declined to 50.3% from 50.5%. "As we previously discussed, the first half of 2015 would be a challenging period due to implementation of our global restructuring and growth plan combined with changes in foreign currency exchange rates," said Chief Executive Daniel Birnbaum. The stock, which lost 3.3% in light premarket trade, has dropped 14% year to date through Tuesday, while the S&P 500 has gained 1.7%.

135   Patrick   2015 Aug 5, 8:18am  

Meh. I also bought Southwest Airlines just before its huge runup.

136   curious2   2015 Aug 5, 10:26am  

Regarding this company, the syrup might have more potential than the fizz. In America, supermarkets stock whole shelves of fruit juice "from concentrate" (mostly H2O), but they don't sell the concentrate (except FCOJ in the freezer section). In other countries, supermarkets sell the concentrate, which customers can store at room temperature. Better brands specify the brix or the fruit % (e.g., "97% fruit"). That's a much more efficient system compared to packaging and selling mostly H2O on American shelves, but the American system allows for more hidden markups: I've noticed American calorie counts dropping slowly, and labels saying "Lite", meaning they're reducing the % of fruit and increasing the % of H2O. The SODA people have a distribution chain that they could use to sell the concentrate that retails in other countries but not here.

Otherwise, making the H2O fizzy doesn't really add value IMO. Kids within a narrow age range might enjoy the increased flatulence (and apparently in Reseda even some of the adults can't think of anything better to do), but the acidity and increased carbon footprint tend usually to become less popular with adults. In beer and hard cider, CO2 is a byproduct of the fermentation process, but not the point; wine usually sells for more.

138   KgK one   2015 Aug 6, 6:53am  

you can buy 12 pack of coke or pepsi for 2 $. 16 cent/ can with exact flavor. they also use purified water.

Making your soda sounds fun but not cost effective yet.

I am trying to find any upcoming technologies that have growth of ^ 20 % /yr, for next 3 yrs. 3D printing was dud. lost some money on it.

139   Patrick   2015 Aug 6, 6:57am  

curious2 says

making the H2O fizzy doesn't really add value IMO

it does add value for us though. we like plain fizzy water, and don't want to buy it or carry it home. sodastream also makes it more cheaply than buying it, about 25c / liter.

140   zzyzzx   2015 Aug 12, 6:49am  

15.77 Down 0.06(0.38%) 9:48AM EDT - Nasdaq Real Time Price

141   zzyzzx   2015 Aug 12, 8:26am  

What's BDS??

142   zzyzzx   2015 Aug 24, 6:54am  

SodaStream International Ltd. (SODA) -NasdaqGS
13.43 Down 1.60(10.62%) 9:53AM EDT - Nasdaq Real Time Price

143   zzyzzx   2015 Nov 5, 7:24am  

Nobody wants that wildly overpriced appliance!

SodaStream International Ltd. (SODA) -NasdaqGS
15.25 Down 1.37(8.22%) 10:20AM EST - Nasdaq Real Time Price

http://finance.yahoo.com/news/sodastream-earnings-line-fx-hits-142002790.html
SodaStream International Ltd. SODA reported adjusted earnings (excluding restructuring costs) of 22 cents per share in the third quarter of 2015 which were in-line with the Zacks Consensus Estimate. Earnings, however, plunged 51% year over year due to lower sales and margins.

Adjusted earnings of the Israel-based manufacturer of household soda machines exclude restructuring costs related to the growth plan. Including the costs, earnings came in at 11 cents, much less than 45 cents a year ago.

Total revenue was $110.0 million which missed the Zacks Consensus Estimate of $114 million by 3.5% and declined 13% year over year.

144   zzyzzx   2016 May 2, 11:14am  

Now they are shrinking their syrup bottles:

145   Patrick   2016 May 2, 7:18pm  

zzyzzx says

Now they are shrinking their syrup bottles:

geez, as if that stuff costs anything at all to make. prolly 2 cents per bottle.

146   komputodo   2016 May 2, 10:07pm  

anonymous says

Want to make your own fresh Coca-Cola at home?

yep, nothing quite so refreshing as a fresh coca cola. Sounds healthy too.Win-win!

147   zzyzzx   2016 May 13, 10:08am  

Obligatory:

148   curious2   2016 May 13, 11:53am  

zzyzzx says

What's BDS??

Boycott, Divestment, and Sanctions: an anti-Israel campaign to punish Israeli companies, e.g. SODA. It has the vehement support of Muslim and some Christian groups.

149   Patrick   2016 May 15, 12:32pm  

the appropriate response might be a counter-bds campaign.

i guess everyone would lose, but the richest people/organizations/countries would lose the least.

bds is really about imposing political correctness via economics.

150   FortWayne   2016 May 15, 1:13pm  

We actually own some stock, couple of thousand not much. However, we also bought their machine, I think it's awesome. Their flavors are terrible though, have to make your own right now. But if they figure that part out, they'll make a killing.

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