Was at a Costco in NJ Today. Salesman said that they a good sold a good 40+ Machines on Black Friday. They were selling them for $99 including a $25 instant rebate from Soda Stream. Why are they already being discounted?
My Costco sold 34 machines on Black Friday. As I was discussing the machine and sales with the guys running the end cap promo, the assistant manager showed up and told me how many they had sold. Store was jam packed today and they were giving out loads of cola samples during the few minutes I stopped by (I also saw 1 machine go into a shopping cart).
While my experience is anecdotal, I suspect every Coscto sold a minimum of 30 machines. Stores more geared toward Black Friday (Target, Bed Bath, etc) surely sold more.
If this is true I would wait until after Q411 earnings. I remember a few quarters ago SODA plummeted after earnings due to higher than expected costs associated with merchandising and marketing expenses. In the long run the amount of Sodastream units sold is crucial for the whole high margin co2 refill, flavors, etc business model so I like this strategy long term of selling the soda makers at or less than cost. However, this current market is particularly fickle and short sighted so I personally am going to wait for a better entry point...Please note that I am not a short so any longs who disagree all the power to you but please refrain from making me out to be some mastermind shorty.