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.
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?
So, a more expensive machine with packaging that also cost more and doesn't allow customization is going to beat Sodastream? We will see.
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.
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.
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.
Thanks for the well wishes Atty. Long selling and shorting will drive Soda down from here. A PE in the 20s for a no growth stock with major new competition and management with a reputation for failure to deliver means Soda goes lower. Lower until a catalyst comes along.
Cold, Sodastream's business model is driven by selling machines. They aren't doing that. Advertising in the US? They have given up on marketing. What are they waiting for? I know they have new technology waiting in the wings. Meanwhile....crickets in the U.S. I know the potential is still their. I still own some stock. Small enough that I just don't care. What if I miss out in them doing a deal with Pepsi or Starbucks?
Look at the chart! This is a rocket ship to the downside that I'm not interested on being heavily invested. I remain interested for all the things you mentioned. But the growth has slowed.
This is a horrible stock for individuals. Buy an index fund, buy apple. Don't buy high risk Gtat type stocks......
Kind of expected this. Complete absence of effective USA marketing. You have to drive a need/want for a home carbonation system. They don't sell themselves. The consumer needs education and persuasion. Sorry for all the longs. I still feel that Soda will one day have a better story to tell. This is a complete failure by management.