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Stone Fox Capital
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Stone Fox Capital Advisors is a registered investment advisor founded in 2010. The firm offers portfolio management with a focus on opportunistic stocks providing secular growth trends at an affordable value. An emphasis is placed on fundamental analysis though charts are used for timing entry... More
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  • Sodastream Filled The Gap... Might Be Ready To Run Now 1 comment
    Jan 6, 2012 3:55 PM | about stocks: SODA, MDLZ
    After a wild ride this week including a big jump and subsequent fall following the deal announcement with Kraft (KFT), Sodasteam (NASDAQ:SODA) filled the gap today. This is very bullish for a further run. The stock fell right back to the gap and jumped. On top of that, the stock is now back over the 200ema. Look for some consolidation until the 10ema catches up and crosses the 200ema. Then, its very possible to get a run back to the $70-80 range from July.

    Disclosure: I am long SODA.
    Themes: Beverages, Long Ideas Stocks: SODA, MDLZ
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  • Josh Krause
    , contributor
    Comments (1361) | Send Message
     
    70-80 is a bit of a pipe dream IMO. I'm long the stock but I see us topping out around $50 for a while.

     

    The stock should run up in front of the 4Q conference call but this not until February or so.

     

    The company is growing at ~30% a year and right now it is priced cheaply compared to that. At 70-80 it would be trading at quite a premium to their growth and I doubt the big money that would be required to get into the stock would be willing to buy it up to such nose bleed levels again.

     

    50 is definitely doable, especially if we get a short squeeze off of the 4Q earnings. Anything more than that would be sold off pretty quickly.
    11 Jan 2012, 01:36 PM Reply Like
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