1. Remove the CFO. He lacks the sophistication to run a top notch balance sheet. Debt is good when it's used to increase the value of the company.
2. Birnbaum should tone down his showmanship. This isn't a zero sum game. A lot to be had without making enemies.
3. Advertise without mentioning Pep and/or KO. Pep and Ko have had 100 years to teach the world how to consume sugar water. Pagani doesn't advertise and mention corvette.
4. Eliminate Sodastream Professional. Instead, focus on more direct to consumer. How about "Premium Soda Bar." Start in Los Angeles, San Francisco, New York, Austin, and Miami.
5. Use the Ipod playbook. Copy exactly how Apple dominated the music business.
This is only a few thoughts I have, and some more to come.
Hey Nhladvisor - I appreciate your what you're saying in your five points, although I have to say I disagree with most of it. As for points 1 and 2, I am very pleased with the performance of the management team and the path they've chosen for the company. They have grown the the company by at least 25% in each of the last three years and have positioned the company for extraordinary future growth. As for point 3, I think the ads that gently poke fun at KO and PEP strike the perfect tone of humor and cheekiness. They also bring home very well the green argument for using SODA.
It is with point 4 that I take particular exception to. I think most people are like me and had their first experience with k-cup coffee at the office. My initial reaction was sceptical; I did not think the coffee would be anywhere near as good as brewed coffee. It was only after experiencing the convenience and consistency of the product (that is to say, after it was demystified) did I consider buying a machine for my home. As I have said before, I would love to see Sodastream Professional break into the office market and give all the office workers an opportunity to try and enjoy SODA products. Of course, if they get their first experience in a restaurant or bar that's fine too, but it's in the office that SODA would be demystified for untold numbers of office workers.
Finally, I think SODA is following the AAPL playbook of using a disruptive technology to change the landscape of the sector it's competint in.
With all that said, it's good to have someone come on the board and put up some new ideas for discussion. It does us all good to hear different perspectives on SODA and to re-examine or own. GLTA.
Sentiment: Strong Buy
Sodastream will unlikely succeed in the office until portable single serving is perfected. Run with me here. With Kuerig, it is about 3 steps to fresh brewed coffee. While SODA is roughly 10 steps to fresh soda. The difference between the two is too great for Soda to succeed in the office, for now.
Love the product. If anyone cares, the diet mist is my favorite. One syrup bottle a week. Not joking. I have always followed this company for an entry point. I listen to every conference call. It's the first stock on my screen. I was hoping to make some money from a product I use loyally. It's the conference calls that turn me of on this stock.
I seen a Cuisanart unit at BBB and the bottle in BOLD letters said CUISANART. I can barely read Sodstreams bottle. ADVERTISEMENT!! This is America! Look what Monster did with their beverages! Coolest dam logo in the world if you ask me! Fender guitars, when bought out by CBS made the headstock bigger. Why? To show the name FENDER in bigger, bolder letters. Advertisement baby!
MNST has missed estimates, top and bottom line for 4 straight quarters. A full year's worth of estimates. MNST doesn't even give guidance, MNST beverage has 5 pending class action lawsuits and one wrongful death lawsuit against the company. I'd rather not be compared to them my friend.
Couldn't agree less, but it is an interesting perspective and thank you kindly for your thoughts. Eliminate SodaStream Professional? Not sure as a shareholder if I would agree with the company spending some $6 million euro only to give up on it. They have already landed 350 points of use this year and aim to add another 1,150 and have recently partnered with a marketing firm and a distribution corporation. I think they are using the Apple playbook as they do dominate the at-home CSD business. Tone down your enthusiasm or showmanship? The exact opposite was said two years ago when the company was more low-key and at the infancy of its expansion. Some think it is a zero sum game, why wouldn't they promote it thus. SODA has plenty of friends, they are called partners or licensees and every company has adversaries, using the word enemy may be a little too airtight if you will. Kindly inform us as to the background of the CFO and why you feel with his background that he lacks the sophistication or qualifications. Wall Street rewards debt free or low debt to equity ratio balance sheets in my opinion. Nothing is wrong with a little debt and SODA has some now after 3 years so aren't they exhibiting exactly want you recognize as beneficial? Thank you again and look forward to your future thoughts.
As for Sodastream Professional, not right now. It's what is done when your original target market has been saturated. When 99% of the world doesn't know how to use the home version, they are introducing Sodastream to the most transient group of people in the world: restaurant workers.
As for the CFO, he is definitely qualified, but not sophisticated. He is a plug and play kind of guy. He constructs the financials according to what he thinks investors would like. I think he lacks the communication skills to take chances because he doesn't know how to defend it verbally. For example, and I am not saying this is what they should do, use debt at these low rates to do buybacks and/or dividends. Buybacks and dividends are the 2 surest ways to chase the shorts out, and partially eliminate volatility.