Interesting times for SodaStream

|By:, SA News Editor

The debate on SodaStream (NASDAQ:SODA) is even livelier after Coca-Cola takes a 16.7% equity stake in Monster Beverage.

Bulls see the development as increasing the odds of beverage giant such as PepsiCo or Starbucks aligning with SodaStream, while skeptics see the Coca-Cola factor as a market share destroyer for SodaStream.

Sluggish demand in the U.S. is being addressed by SodaStream with a new marketing message in which health will be highlighted over conservation.

The company's cash position is also in focus. Free cash flow has weakened considerably over the last year due to investments, notes SA contributor Amal Singh.

The wildcard in the mix: It's been quiet at Dr. Pepper Snapple (NYSE:DPS) on the M&A front. Some consumer analysts are tipping DPS to be the sleeper pick to acquire SodaStream.

SODA +3.7% premarket