Doing the same thing over and over and expecting a different result. There is no reason to invest in this stock now. Wait for positive earnings. You can always buy later. I said the same thing at $10 a few months ago.
After all these years of following the business, I still don't see the catalyst needed to give the business positive momentum. I know management is working...... Aren't they? More room to drop here.
Here we have the market's mania hard at work. Fear. Anxiety. Bankruptcy? This is a cyclical industry. All
RIG has to do is survive. RIG will survive. The dividend may be cut. That is when you buy, average down, sell higher purchased shares if a tax loss sale works to your advantage. With the PPS below book, stock buy backs and acquisitions of distressed assets are a better use of capital anyway.
In the meantime, I'm watching and waiting for the bottom. When will sentiment be the worst? A high volume, panicked sell off is coming. Keep your powder dry.
So, a more expensive machine with packaging that also cost more and doesn't allow customization is going to beat Sodastream? We will see.
The ride down! Buying because it is cheap rarely works out. Declining cash and absence of revenues mean stay away. Who will buy the bones of szym out of bankruptcy?
Sodastream is at a crossroads. Soda is facing headwinds from an imminent entry of major competitors GMCR and Coke. Soda's U.S. sales have fallen off a cliff with no evidence of recovery. The PPS is languishing.
Will GMCR's entry stimulate the category and benefit Sodastream?
Will Pepsi package syrups for Sodastream?
Will Sodastream be able to effectively market in the U.S?
Will free cash flow and margins improve with the completion of Soda's $100,000,000 million plus manufacturing plant?
What new machines/technology is coming next year? Do people really want to carbonate beer, wine etc?
Will Europe and other markets continue to offset US weakness?
Will moving manufacturing out of disputed territory benefit the business and brand?
Sodastream is the current and only mainstream home carbonation player. Side by side comparison testing with the GMCR entry is inevitable. Single serve vs. liter serving size, lower upfront cost, lack of a plug plus the ability to just make seltzer water benefit Soda. Coca cola branding benefits GMCR. Will Pepsi syrup availability tilt the advantage to Sodastream?
With new machines coming, improved marketing budget and margins, likely Pepsi syrup availability and a new major entrant stimulating interest in the segment, Sodastream's best days are ahead. An installed user base around the world of 10,000,000 users is not going away over night.
The PPS will likely continue to languish. My current holdings are 10% of what they were. I'm waiting for maximum negativity and all time lows before I step back into the stock. Good luck longs.
Hey shorts! Thanks for sucking up the $0.72 dividend next month. Come on shorts. This isn't Amazon or Netflix. It's a good ole boy chicken operation. Been around a long time. "Who needs to borrow money?" Said Joe Sanford on the last conference call as they print $ faster than ever.
I have RIG at a higher price point. I will keep the shares I'm buying here, take the tax loss on higher priced shares. Great way to increase my position and use this downdraft to my advantage.
Is this company going to disappear? Is the industry going to close it's doors? I sold EXC a few years ago when they cut the dividend. What happened next? It went up!!!!!!!!
This sector is presenting a serious opportunity to make $. Wait until they start cutting the dividend and buy! I still hold some RIG bought at $39 and $38. But it is a placeholder. Eventually this will turn around. The stock is positioning for a lower divi anyway.
$50 million lower feed cost next year vs. this year at current futures pricing. Constrained breeding stock. Increased production at SAFM with a new plant on line and another on the way. 30% increase in production capacity in the next few years. Continued strong prices in world consuming more protein. Think I will sit on SAFM a bit longer.
Do you think the massive employee bonuses will make the PPS less attractive in a buyout!? The company was still able to generate $4 a share in profit. Annualize that to $16 a year and this stock is still woefully undervalued.
Nope, an individual investor, long since the $70s earlier this year because I know that decreased feed costs, capacity constrained production and a consolidating industry is a good place to be. Don't be paranoid. Just because you are short. Someday you will cover. But I will never sell. Just keep reinvesting the dividends.
Insiders? where was the drop to $85 and the terrible chart. Go ahead and short a price to sales less than one and a PE less than 10 that is buying back stock and paying a small but growing dividend. At least you are honest that you are short. Please short it more.
The bonus structure will be harder to reach next year. Also the contribution to the bonus pool will be less next quarter. At least they aren't diluting the shareholders by printing stock. Next year will provide similar margins as grain production has been incredible.