When I see a firm drop their target for SODA to $40, I am puzzled. What is it they see for SODA's future? It will grow at 5%-10% per year and with about $3/share coming up that seems fair affair price?
I just can't imagine SODA settling into that mode for several years. It is either a fad or it isn't.
That's why the flavor sales matter so much even though their contribution is small to net income.
SODA must be a disruptor to sell for high multiples,frankly, IMO, to really stay in business.
Otherwise it becomes a Primo water, a supplier of a simple staple, CO2.
So, if I believed what some of these analysts seem to believe, I put a cap on the company of a few hundred million. But, if I believed in SODA's disruptive potential, I'd put a potential cap well into the billions. There really is no in between, IMO.
if you're puzzled, then check out PF, that's the firm that sets the price at $40. PF is nothing but another investor like you and I, look at PF's performance sice 87, they only started making money since the oil and mortgage boom. SODA's price is trading at Jan 13 level which is pretty low, and RSI is at 28 which is a buying point.
With all due respect, I completely disagree.... They just need to be an in home carbonated soda brand mostly for people who drink carbonated soda(perrier, peligrino, generic) - this mkt is HUGE. This mkt feeds the gas pipe line... That's all that matters... As for prmw... Huh?
Since when did they manufacture millions of patented cannisters that can achieve 8mg of c02?
This was the most important part of the cc. 8mg of c02 cannot and will not be replicated until 2026 when their patent runs out.
There is no in between - only smoke screens - soda mgmt knows all too well what they have and they are making it seem like it's not there - JUST LOOK AT THE GAS REFILLS - that's the disruptive component.
My wife did a focus group 2 months ago rating appliances. Guess what appliance was in a several refrigerators.. The entire focus group loved it. The company running the focus group just asked them to evaluate the verything but the built in carbonator...but the soda stream carbonator was all everyone was talking about.