Seeking Alpha

Stunning fall for SodaStream after cracks emerge in growth story

  • SodaStream (SODA -21.2%) dives after the company put a major dent in its growth story with a lowering of guidance for its 2013 fiscal year.
  • Investors seem most alarmed by the company's admission that it had to push through lower sell-in prices in order to push up the volume of sales. It raises the question of saturation in key markets for SodaStream's products to some beverage industry watchers.
  • Shares of SODA are below $40 for the first time since 2012.
Comments (15)
  • alnut
    , contributor
    Comments (66) | Send Message
     
    Well, this happy consumer is still using the product....
    And looking for the right buy-in signal...
    13 Jan, 10:07 AM Reply Like
  • Kip Largo
    , contributor
    Comments (53) | Send Message
     
    This seems way overblown. Soda spent a lot of this year getting into international markets and building out a distribution network. Way I see it, the low hanging fruit they have, what they did in 2013 was build a ladder for more.
    13 Jan, 10:18 AM Reply Like
  • sfinvestor
    , contributor
    Comments (912) | Send Message
     
    HUGE miss

     

    54M net income per disappointing guidance in Oct vs.41.5M Essentially the company is flat or "RED" Can't call that overblown. FY14 estimates will come WAYYYYYY down to maybe nothing.

     

    I wouldn't overlook the news before truly understanding it. I lot of the long basis is the facts that it was getting a cheap PE on growing earnings. Well, there goes your earnings. Poof, gone in one 3 paragraph news.
    13 Jan, 01:48 PM Reply Like
  • tomlos
    , contributor
    Comments (1116) | Send Message
     
    wait wait, KO killer I thought.. what happened?!
    13 Jan, 10:42 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4188) | Send Message
     
    Sodastream (SODA) Rumortrage Short: http://seekingalpha.co...
    13 Jan, 11:52 AM Reply Like
  • macsmart
    , contributor
    Comments (125) | Send Message
     
    No serious person ever thought it was a KO killer.

     

    This drop is way overblown. There is still a lot that is solid about this company and its products.

     

    Why is it that Bed Bath and Beyond and other stores can barely keep new units on the shelves? When I go in to exchange gas canisters for my unit (I use it daily) the people behind the counter always comment on how remarklably popular the product is. In Staples, I was told they keep running out of gas canisters. Perhaps it's a production problem?

     

    I know this is anecdotal, but I still think this company has an excellent product.

     

    The convenience of not having to lug bottles of soda from the market, the decrease in calories, lots of choices of flavors, including for alcoholic drink mixes ,and the environmental reasons of not cluttering up the world with more plastic bottles are the reasons to buy it.
    13 Jan, 11:57 AM Reply Like
  • Kip Largo
    , contributor
    Comments (53) | Send Message
     
    You have to think od Soda as much of a CO2 company as a soda company. They have had an ongoing issue supplying CO2 since the beginning. In 2013 they focused a great deal on the distribution of Co2, but it is tough because at the same time they are expanding, so catching up has been tough. However their efforts will be rewarded in this aspect of their business.
    13 Jan, 05:32 PM Reply Like
  • alnut
    , contributor
    Comments (66) | Send Message
     
    Hey, Mac...You are on the button.
    Next quarter's sales will surely tell the story.
    As for me, I am waiting for the technical rebound.....
    13 Jan, 02:32 PM Reply Like
  • nicobaron
    , contributor
    Comment (1) | Send Message
     
    $37 is a good entry point, I 'll average downn....
    13 Jan, 03:41 PM Reply Like
  • Ajwasp
    , contributor
    Comment (1) | Send Message
     
    Iam a casual trader. Nothing spectacular. But I am pothead for Marajuana stocks out there. SODA will go great with them.
    14 Jan, 06:43 AM Reply Like
  • amkthetraveller
    , contributor
    Comments (5) | Send Message
     
    iN MY OPINION the drop in the share value is judged too much on just the USA market, whilst SODA is expanding all the time in other markets too. I liked the other article of SA from yesterday
    were it made common sense that a company expanding at over 20% all the time cannot always
    produce the profit shareholders expect. The comparison with the early growth of AMAZON was
    very good.
    14 Jan, 10:04 AM Reply Like
  • Vince from Canada
    , contributor
    Comments (17) | Send Message
     
    what's to stop other companies from producing a similar product? or installing the same device in a refrigerator for instance?
    14 Jan, 07:56 PM Reply Like
  • alnut
    , contributor
    Comments (66) | Send Message
     
    Vince..
    Patents, start up costs, and building a competitive distribution network.
    15 Jan, 01:45 PM Reply Like
  • CNative
    , contributor
    Comment (1) | Send Message
     
    alnut- what patents? any patents they have can easily be circumvented. SODA knocked off the restaurant industries big machines. all they did was make them smaller? I can easily change over the CO2 carts to use a 50 gallon CO2 container and make my own bubbly water, then I can buy name brand soda syrup from restaurant supply houses etc and getthe real deal ( something i havent see in SS yet - licensing). Nobody who loves 'pop' really needs SS. they are simply convenient, thats all. I'd love to buy this stock, but I just cant - too many uncertainties . although i do see a day where Carbonation is added to refrigerators water dispensors, that'd be kinda cool. then their patented CO2 container may help- them get revenue because of its size. and to my knowledge the only real patent they have it the threading on it CO2 containers. am i missing something?
    19 Jan, 02:36 AM Reply Like
  • alnut
    , contributor
    Comments (66) | Send Message
     
    No, CNative, you just proved the point....
    I regularly troop down to a Soda Stream dealer to buy some non aspartame, diet syrup and a refill CO2 cartridge or two.
    That is called "recurring revenue"!
    I have one in Montreal, and just bought one in Florida. I no longer drink Coke or Pepsi product.Every new machine sale increases the recurring revenue.If you really think you can replicate this money machine (which I do not think I can) pls let me know, and I am in!
    30 Jan, 05:26 PM Reply Like
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