Soda Stream (NASDAQ:SODA) is down nearly 8% in the last 24 hours as Ireland's Parliament pushes a proposal to ban all exports from Israeli settlements in the illegally occupied territories of Israel/Palestine. Is this sell-off of SODA warranted?
What most investors haven't discovered with regards to the Irish Parliamentary proposal is that according to the EU/Israel Association Agreement this type of unilateral move would prove illegal to adopt as official policy. The recent proposal which is nothing new, Ireland proposed the same type of measure in August of 2011, is more of a call to arms with regards to human rights issues. Ireland has challenged the EU to adopt greater sanctions on countries whom do not uphold the Euro Zone's policies with regard to human rights.
Capital Ladder Advisory Group held conversations regarding this developing story with Soda Stream's management team early yesterday. Management noted that this is a non-issue for Soda Stream as it has 13 production facilities around the globe and a "proper" facility not in Palestine settlement areas which it operates. Therefore, these investor fears are unwarranted as the proposed ban, even if it were to become law, would not affect Soda Stream.