SodaStream Shares Spike As Investors See Signs Of Sales Being Reported


Shares of SODA spike on sales data dissemination.

Sourcing your SodaStream due diligence.

Social Media is becoming a strong source for investors.

When investing in a consumer packaged goods company it can sometimes be beneficial to understand where to acquire the necessary information surrounding the company's operations. Sometimes, you can even find strong supporting materials and information regarding the company's sales and general market sentiment. A company's quarterly filing and/or transcript can offer investors a great deal of information, but often they are incomplete and will leave investors with unanswered questions.

In this article, we will discuss SodaStream (NASDAQ:SODA) and how investors can follow the company as it develops going forward. In order to create a road map for due diligence we will be breaking down due diligence into 3 sections as follows:

  2. Social Media
  3. Capital Ladder Advisory Group/ Alpha Source #1

SodaStream's official website, which includes distribution channels by region/market, quarterly filings, press releases, Investor/Analyst day presentations and slide shows, is a very useful tool for investors whom seek to better understand the company's operations and possibilities. For investors seeking to discover where the consumer can purchase SodaStream products and what products are available at the different retailers all they simply have to do is click.

In the United States, SodaStream has over 19,000 points of sale. Yes, now I know some of you will point out that the company just touted 17,000 retail locations in the United States on the latest conference call, but since then…well, do your homework and click on the link. If I were an investor, I would be using this link at least twice a month to see how the company is progressing with its distribution channels. Naturally, not all distribution channels are created equally, but in order to understand that homework must be done on the part of the investor.

As stated earlier, investors can read through and take notes concerning the company's results and future objectives via SodaStream's investor relations page. By reading through quarterly results and presentations, investors can acquire a broad base of knowledge surrounding the company's historic results, most recent results and future expectations. Because SodaStream is an international company, it might also be beneficial for investors to visit the "careers" page in order to gauge when and where the company is looking to deploy new talent.

Social Media: Source #2

Social Media is quickly becoming a resource for many investors. Sites like Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and LinkedIn (NYSE:LNKD) are rapidly becoming a staple for many an investor seeking to find out all they can on a particular company. I readily use all three social media sites named in order to broaden my resource base. For example, how would an investor ever know that SodaStream is edging closer to debuting its product line in the Indian market place without the use of LinkedIn? Most of SodaStream's proprietary markets, the markets which SodaStream owns and operates, have a market manager. Until performing a quick search on LinkedIn, I would have never known that SodaStream hired a market manager, finance manager and marketing specialist in India over the last 8 months.

Facebook can house a bevy, no pun intended to Bevyz Global, of information on SodaStream. The company has roughly 20-manned regional pages dedicated to its fans, users and potential new users. SodaStream fans can ask some pretty interesting questions in the comment section sometimes and the responses from SodaStream can be equally eye-opening if you pay attention.

One interesting insight into SodaStream's product placement that I found recently was the deployment of new flavors in the Australian marketplace. Naturally, I found the information on SodaStream Australia's Facebook page.

Facebook even has a dedicated fan page for Australians whom desire American flavors like Dr. Pete, Strawberry, Cherry Cola, Fountain Mist and Grape . All these flavors have recently launched in Australia after strong success last year with SodaStream Dr. Pete flavors. In addition to this insight acquired through Facebook's social media platform, I also discovered that Samsung has launched a new refrigerator system that is powered by SodaStream with counter-depth dimensions. This is the second refrigerator for which SodaStream has collaborated with Samsung.

In addition to Facebook and LinkedIn, I follow SodaStream's many regional Twitter feeds. While Twitter is mainly used as an outlet to advertise promotional events and market products for companies, it doesn't allow for much engagement. I check in on Twitter myself from time to time in order to update investors on the myriad of operational "goings on" with SodaStream so feel free to tweet folks, you never know what you might be tweeted back with.

Capital Ladder: Source #3

SodaStream has a number of analyst firms covering the company, but none more closely than Capital Ladder Advisory Group. Our firm has provided dedicated research and insight into the company for the better part of three years, predicting a series of events and forecasting the operational developments along this period of time. Through we've delivered premium SodaStream research reports to the investment community. Early this week we received the latest sales data for SodaStream products at Wal-Mart (NYSE:WMT). After analyzing the sales closely, Capital Ladder disseminated that sales were definitively picking up at Wal-Mart after the installation of a 20 foot display of SodaStream products 3 weeks ago. The new 20 foot display at Wal-Mart began with a pricing promotion as well which has helped to spur consumers that might not otherwise be interested in a soda maker.

The news only got better on June 18th with the latest sales figures coming from another large SodaStream retailer in North America as shown here. Shortly after Capital Ladder disseminated these latest sales figures to institutional market participants, shares of SODA began to spike dramatically and over a period of an hour. At their daily peak, shares of SODA were up more than 6 percent on the day before settling back in with a gain of nearly 3% on the day. Capital Ladder will release the next round of sales data in July.

Capital Ladder Advisory Group has been sharing our research and analysis with Seeking Alpha for the last two years as we find the platform advantageous for investors. While we were offered the opportunity to share our information with Motley Fool, we found that the majority of investors don't achieve the same level of analysis with Motley Fool publications as they can achieve on Seeking Alpha. As a matter of fact, Seeking Alpha participated in the first published interview of its kind with SodaStream's Yonah Lloyd on Seeking Alpha which is viewable here.

In closing, we hope investors can see that with a little due diligence and sourcing they can dig deeper and discover some operational activities surrounding SodaStream throughout the quarter and year. In my next SodaStream update I will develop the notion of "gravy" as it pertains to SodaStream and its pipeline of product initiatives slated for 2015. Wait, let me guess; you thought this was just a soda maker company… right?

Disclosure: The author is long SODA, TWTR. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.