Take SODA EPS estimate 2014, $3.33/share. Deduct 2013 estimate, $2.57/share, divide by $2.57 share and get 29.6% growth rate. Multiply growth rate of 29.6 times next years projected EPS of $3.33 and get $98 share price.
Do the same exercise for GMCR and you will get a $59 share price.
Over time stock prices almost always revert to an appropriate multiple of projected earnings. Why this huge discount? It's Syria and the Mideast., IMO.
So, the question is, will it always be discounted to this extent?
Yes, Soda has a good story to tell. For whatever reasons its a hated stock. But I agree eventually it gets back to the numbers. Scratching my head asking why the negative move presently. I really doubt its the ME conflict. It maybe a small part of it but theirs something else. Not being a US company , maybe. Is it GMCR investors meeting, maybe. But it could be some naive perception on this qtrs. earnings vs. last yrs. qtr number. The present estimates would be no growth and actually a reduction due to the high number last yrs. Q3. I don't agree with that but there's something out there. In any case Soda is overdue for an uptick and when it comes it will move quickly.