Soda is so beaten down and the outlook is so poor I love it. Just like Apple at $400 when I added as much as I could. 10 million global users. $250 million in profit just from the installed base. Still growing. And Sodastream did all of this without the aid of a major partner. I remain long, added heavily last week.
Good luck longs.
I agree with your statements about under investing in marketing. Apparently they are spending marketing $ in Europe where Soda has greater traction. They will more likely spend more in the US during the all important holidays. This is a marathon not a sprint.
You are correct that Sodastream has been in existence for almost 100 years. Apple was almost bankrupt before Steve Job's return. The hiring of Daniel Birnbaum by Sodastream catalyzed an amazing run of growth from millions to hundreds of millions of $ of revenue from around the world. Having a visionary CEO brought Soda out of the dustbin.
The benefits of Sodastream: freshness, customization, less plastic waste, less lugging heavy bottles and less expense to the customer prove that Sodastream will continue to grow. The major bottlers have to package and transport every single serving. Fuel and plastics cost are only going to increase further driving Soda's price advantage. Sodastream is a snowball. They will continually add new users, add more flavors, add new models with new technology.
Soda is having a rough spot and the stock is rightly being punished. But this is a temporary rough spot. A new manufacturing plant is almost on line, margins and cash flow will improve allowing increased marketing. There is always the promise of expanding partnerships with major manufacturers. There isn't a guidebook for this industry and Sodastream is learning, improving and planning for the ling haul. As am I.
Bob, Sodastream is growing. Sodastream has $600 million in sales in a $300 billion category. Soda sells carbonated water and a hundred different ways for you to customize your own drink. The category is so gigantic that Sodastream can grow for decades.
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.
The market is irrational. It works to your favor. Sodastream is at a 2 year low. Sentiment is terrible. But Soda is still growing it's user base. Still has hyper growth in Europe. Still adding distribution in the US. Pepsi and Starbucks in the wings. Patience is a virtue. The story isn't over.
Soda will have their new plant operational in the next 9 months. They will no longer depend on disputed territory and workers. At that point in time major, international brands will be more willing to partner with Soda.
I own many sodastream machines. I have one at each of my work offices and one at home. I have upgraded them more than once. I have tried the Fizz, the Genesis and the Source. All of them were good to really good machines. But THIS ONE really, truly shows what Sodastream SHOULD be.
Let's just get this out of the way: it comes in Kitchenaid colors. Could you die? Yeah, I know. Tangerine is what I got. Matches my stand mixer PERFECTLY. But it is really how the machine works that makes it worth the $$.
It's solid steel construction (except for the back CO2 canister cover) means it does NOT BUDGE from your counter. No tilting, tipping, shaking. Rock solid.
The click-lock mechanism SEALS PERFECTLY. no more leaking CO2 (like the Source). Next, the "freezing" problem has been SOLVED. Sometimes if your water is a tad too cold, you'll get freezing CO2 at the tip and that's annoying. That doesn't happen w/the Kitchenaid machine.
If you happen to overfill your bottles by a little, no worries on the Kitchenaid Sodastream. You won't be blowing sputtering water out of the machine because you overfilled a bit.
The gauge to show your carbonation level is AWESOME. It's not "three clicks" or "buzzes". It's not confusing like the lights on the Source is. It's an analog gauge...and you just watch as the carbonation increases.
The handle is fantastic, too. It is just like an old soda-jerk handle. The Kitchenaid Sodastream is really pure joy to use!
I love everything about it. It was a GREAT investment for a soda-holic like me. I wish I could justify buying these to replace the ones in my office. But it is a spendy for more than one. But then again....that turquoise color sure is beautiful so we'll see!
Buy this. You'lllove it.(hide)
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.
Soda is one part of my diversified holdings. I don't panic when a stock goes down. I can hold on indefinitely. Sodastream has multiple revenue streams around the world. This stock is not going to 0. The expense of the new plant is done at the end of the year. Moving out of the disputed factory by the end of the year. Pepsi syrup packaged for home carbonation by the end of the year. Sodastream is moving through a transition in its business and is poised for a better 2015. And even in this rough spot it is still gaining new users who will never go back to bottled drinks. The future is Sodastream. It will take time.
Look at Tesla. Compare the market penetration of Tesla to Sodastream. More consumers are converting to Sodastream than Tesla. Over 1% of Americans and gaining are using Sodastream and it is priced to nothing. Tesla has converted less than 0.01% of Americans and it is priced to perfection. Sodastream has better margins than Tesla.
This is a story about the future.
Oh please.,GA tech. The market is based on unequally disbursed information. After losing a bet with Seth last year I'm a subscriber. I've spoken on the phone with him personally and he doesn't know anything that isn't public. He does research. He is out doing channel checks and communicating. Doing research and bring informed isn't illegal.
#$%$ argument. CO2 sales at a record high. Sodastream is purchased as a gift item in the US. It is purchased for individual use in Europe. Europe always has better sales in the summer and the US over the holidays. The focus on Walmart while the rest of the world is progressing is selective thinking.
Sodastream is growing its user base in the US just as they did in Europe. In Europe they are more and more mainstream in grocery stores. This was a progression that took years. They are making the same progress in the US. It takes time and Sodastream is in it for the long haul. They do need to adjust their marketing to mainstream consumers and that means discounts in the U.S.
There is so much negativity over a company that has grown from $10 million in sales to $600 million within a decade. Sodastream has had astonishing growth. It is no longer in that phase. Each incremental user is harder to acquire. This is a normal phase of business.
Years ago I said that Sodastream could become one of the most profitable businesses in the world if they could pass on the savings of not bottling and transporting water to their users. Birnbaum needs to get real and market to mainstream Americans. It will happen, with either him or someone else getting the job done.
I've made most of my $ buying stocks when they were beaten down: bac, FB, appl, ge.... I'm not stupid. I've done this long enough to know that sentiment changes. What? Are you chasing all the stocks at new highs? It's time for me to start trimming those....
A takeover would be good for a short term pop. I've been riding Soda for years and want the whole story to play. I more than doubled down over the past few weeks. A shame to let it go cheaply.
Good luck to all the longs. Good to see you Atty.
Later this year Sodastream's new plant will be fully operational. There will no longer be a problem with disputed territory. Pepsi will sell syrup into the Sodastream system once this area of controversy resolves. The timing works out well because Pepsi is not going to let Coke have all the limelight with GMCR during the holidays.
Also, free cash flow will start to climb. User base is continuing to expand. More marketing. I bought more stock this morning. Still waiting to pull the trigger on massive (for me) buy if it drops into the 20s.
Other stocks are doing well, apple, FB, safm, jpm, mcd, tcap, sbux. Sold ebay. Still sitting on bac. Also pzza, and dnkn. Intend to keep Soda long-term and let it play out. GMCR cold is still vaporware and completely unproven that the market will accept it.
Pepsi CEO already said they would work with all home soda makers. She added "stay tuned". Expect this to happen before the end of the year.