I thought they would grow sales at 50% for the year and was expecting at least another 200K machines sold. So I guess i will have to live with 40% rev growth.
For the last two years they have grown on avg of 45% in terms of rev growth and this last year grew adjusted net income by 95% on 40% rev growth.
I'm sure they will do 40% growth next year and if they can get Walmart up and running it will be closer to 50%. So I ask the board do you think with around the same growth rate that they can increase net income again close to 100%???
I think it's possible and to be conservative if they grow income net 80% next year;YOY. This would put earning at $2.88 for 2012. Any thoughts???
I hope I am wrong and I probably am, but do you know the prices? Do you know what option plans they have in place? I hope I am wrong and we can check the managements compensation plans, just show me the numbers.
Yes, of course, you are right. He wants the stock price low so the BOD and shareholders will be encouraged and give him more money and bonuses. He will do anything to get that done even defer buying wonderful things for his family for years while he keeps the sock price done so he has no reason to exercise those options at big prices.Yes, you're really making a lot of sense.
..I am starting to think that it's probably better to cashout and wait for the "adjusted expenditure" to ran out it's course and then get back in to the game. Maybe 1-2 years from now they have scooped enough stock to be interested in actually increasing the share value, not just the principles.
I would belive that the earnings will grow a lot and that 2.88$ is very reasonable estimate. Now that the US consumer base is growing, so will the high profit consumables and we already know US customers use double the money on consumables compared to the europeans. To me that's a clear sign that we can expect better profitability with the main market that is still in it's early stages of growth.
IMHO - With the current valuation it's a bargain.
Earnings are growing faster than revenue. Fully expect $2.00 this year. Hard to say what next years growth will be like. But continued 30% growth is apparently what management feels comfortable forecasting. Again, Soda is a snowball rolling downhill. Picking up size. We know the hill is 250 billion dollars high. Just how far down the hill and how fast it gets there remains to be seen.
Steady gains and operational excellence by a skilled management team are worth a fortune. I remain impressed by Birnbaum's steering of the company. He remains a very likable guy while making good decisions and delivering more than he has promised. I have not once heard him try to hype the stock. On the CNBC segment he displayed the winning personality that I am sure has helped Soda get into a lot of outlets. He is a good salesman for the company if not the stock.
On the Birmbaum comment: He is the biggest cheerleader for sales and growing the company. In 2010 He and other officers were in New York for Black Friday when he went into Macy's and realized that had not one Soda Stream maker in stock. He placed a call to a distributor and got that particular store 100 soda makers within 3 days. He is the kind of guy that wants to secure every sale possible in order to spread the brand.