Thanks for clarifying Burgh. I was aware. But Sodastream is a start-up in comparison to the majors and of course their expenses are going to be proportionately higher.
I don't see why they pulled back from the home shopping channels. It was one if their best outlets that demonstrated the system and reached mass market efficiently. They cheaper out.
Burgh, they are expanding the user base, adding CO2 filling stations, building a massive new plant. They are investing for the long haul. Look how long it took them to get Europe to this level?
Get this: Rosa DeLauro, the brave and beloved 12-term congresswoman from New Haven, will be introducing a bill in the House of Representatives Wednesday that would require a national tax on sugar-sweetened beverages.
See the remainder on NYT.
Martin, Sodastream is not going to fail. The installed base will provide funds for them to get their marketing dialed in for the US. It is a business a monkey could run. It isn't high tech. Look at the example Birnbaum grace during the call. The right marketing in Germany doubled household penetration in a few years. They will get the right message. And they will have more $ going forward to use on marketing.
Every time it gets down below $30 I load it up. It's been a few times of more than doubling my $. If only I knew how to trade options.
Yes, an expensive machine with lightly carbonated expensive Coke pods with more plastic waste is a sure winner. Where is it?
Soda is in a street fight adding users. The user base is growing. It will not stop growing. Soda is going to be a force to be reckoned with. GMCR doesn't have a chance in this industry.
And so I added to SAFM. It's been a great stock and remains undervalued in a consolidating market. Safm is buying back stock and the trend is a friend.
There are more and more taxes on bottled beverages. Mexico is probably the most significant as well as France. Other localities are adding their own taxes to sodas. Sodastream offers a way to dodge those taxes. For now.
Not a bad quarter at all. They still haven't figured out the US consumer. They need to sell it in every metric to the fattest nation health, freshness, savings.
Go over to Apple Insider and look at the editorial criticizing Gartner and IDC. These companies forecast a 2% decline for Apple Macs while Apple had a 17% increase in Macs sold. How could these agencies such as NPD get it wrong? They don't have access to all the information. They don't know about all the sales channels. Substantial sales have moved online. Amazon is selling a lot of Sodastream and this channel isn't even captured by NPD. We are left with only Wal Mart, which has been losing sales to the internet for a long time.
I forecast that Sodastream will have a strong beat tomorrow. The record CO2 sales is the tell. Good luck longs.
Roth Capital analyst Anton Brenner today issued a note in which he reiterated a Buy rating on SodaStream International (SODA) with a $55 price target amid expectations for the company to have a strong rebound in 2H.
cO2 refills up 22%
Flavors up 9%
Machine sales were down from a year where they sold 4.4 million units the year before. But the strength of the installed base is intact. What other soda maker has growth like this?
I don't know what the stock will do tomorrow. But it seems safe to say that the negative sentiment is baked into the PPS. One household at a time Sodastream will win.