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I have no position. I've done quite well on GMCR and was hoping to compare the two companies.What is the gross margin on the machines if I may ask? I can go research it myself but I'm sure you can answer it more quickly for me.
You are either a short or a person who wants to go long and wants to get challenged to feel comfortable to go into the stock.GMCR breaks even on almost every single Keurig machine sold. Margins vary on machines as in some of the 39 markets, they use distributors. In other markets, they utilize direct distribution. In the U.S. they do direct shipping from Sodastream to vendors. Unlike GMCR, Soda makes good margins on machines. The consumables do indeed have higher margins. Once the installed base is in play (I expect by mid 2012 to early 2013) Sodastream becomes a syrup and CO2 company. As you know soda, seltzer, etc is a $35 billion dollar market. Single digit penetration into this arena could result in a billion dollars in annual revenues (when combined with the rest of the world.)Just enter the stock today. Look at the surge in U.S. sales. By the end of the year, sales in the U.S. could exceed sales in the rest of the world. Yes, you heard me correctly. I'm acutely aware of the market size of soda and also aware that the current active users in the U.S. are happy with the product and recommend it to others. I've personally interviewed dozens of active users via Facebook, Amazon, and in stores. Do some real DD. Simply analyzing a quarterly report is not sufficient. If you did some DD before, you would have made 25 to 30% in this equity. Don't miss the next 30%.