Wednesday, January 30, 2013

Why SodaStream Is Ready to Go Flat

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home beverage carbonation system specialist SodaStream International (NASDAQ: SODA  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at SodaStream and see what CAPS investors are saying about the stock right now.

SodaStream facts

Headquarters

Airport City, Israel

Market Cap

$1.0 billion

Industry

Household appliances

Trailing-12-Month Revenue

$386.2 million

Management

CEO Daniel Birnbaum (since 2007)
CFO Daniel Erdreich (since 2007)

Trailing-12-Month Return on Equity

17.6%

Cash/Debt

$50.7 million / $0

Competitors

Vikingsoda AB

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 16% of the 679 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Ianwanguru, succinctly summed up the SodaStream bear case for our community:

I think the idea is losing its fizz. This is a one-trick pony with a couple different similar competing products. Unless they can get distribution agreements with real name-brand flavors to put main-line syrups in their packaging, I don't see a good differentiator on something that's ultimately a novelty product to begin with.

Of course, this short pitch doesn't even come close to telling the entire story of SodaStream. You're in luck, though. The Fool's brand-new premium report on SodaStream tells all sides of the story for one of the most compelling growth plays in the market. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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