Sodastream Unlikely To Suffer The Same Fate As GMCR
- By Josh Krause:
Has SODA Gone Flat?
On Wednesday, May 2, Green Mountain Coffee Roasters (GMCR) disappointed the markets with first quarter earnings [see transcript] that saw a decrease in growth and its stock got punished severely. At the same time we saw Sodastream (SODA) get a hefty chunk taken out of it on no significant news.Is the market correct in thinking that SODA will suffer the same fate as GMCR on Wednesday, May 9, when first quarter earnings are reported before the market opens?
SODA manufactures and sells home carbonation devices on a roughly razor-blade model popularized by Gillette and Green Mountain Coffee Roasters. Carbonation machines are sold at near cost with higher margin carbonation refills and flavored syrups providing continued revenue from the installed base.The brand is a lot older than many in the US might realize. Originally operated as a subsidiary of W & A Gilbey,Complete Story »