Happy Thanksgiving!
I wasn’t going to talk about this company for another couple weeks, but the buzz for this stock is outrageous! The name of the company is SodaStream International (SODA).
SodaStream could be one of the hottest IPO’s for 2010. SODA initially went public back on Wednesday November 3rd and money has been pouring into this stock over the past few days. I first came across this company when Jim Cramer mentioned that SODA went public. Obviously, he has made me a lot of money with his stock picks and recommendations. I consider him one of the greatest investors of all time and the reason I enjoy investing in stocks. This stock is different! Jim mentioned SODA and Hansen Natural in the same sentence. That’s when I really became interested with SODA. Hansen Natural (HANS) is the maker of Monster Energy drinks and is one of greatest growth stocks of all time! I have never seen a stock move up as fast as Hansen Natural did in my 8 years of investing. Cramer said this company could be the next Hansen Natural. Of course this is pure speculation on Jim Cramer’s part, but if this product takes hold in the United States this stock will be very successful.
So what does SodaStream have to offer? SodaStream manufactures home beverage carbonation systems (AKA) soda makers. That’s right soda makers! Seems like a pretty easy concept. SODA offers more than just the soda maker, but everything that is needed to create your very own personalized drink. The products offered include the soda maker, flavors, bottles, and carbonators. I believe this product will catch on. Here are my reasons from the research that I have done.
1. It’s cheaper to make your own soda long term
2. It will help reduce the amount of aluminum and plastic consumption in the world (Go Green)
3. It’s healthier. From the companies home web page it states a drink has 1/3 less calories compared to the national brands.
4. It’s a simple process. Quick and Easy!
5. Soda stays carbonated for up to 2 weeks
6. Personalization of your own flavor and amount of carbonation will meet the needs of all consumers. (People are picky and making the drink to fit your personal preference is a plus)
7. Energy drinks. You can make your own. This one is my favorite since I drink a ton of Monster. I could take the difference in cost and invest the rest.
The main reason for potential success is SODA products allow for the creation of residual income. That means money will continue to come in over the lifetime of the soda maker. Companies that offer products that must be replenished are always great investments. Initially SODA will make a large amount of money off the soda makers and kits. Then repeat sales will continue with the flavors, carbonators, and accessories. It's a glorified money making machine!
The stock currently closed yesterday at $41.21. On November 3rd the first day of trading the stock closed at $24.12. That’s a 70.8% return. It was trading in the 30’s a couple days ago and I believe it will pull back next week after they report their 3rd qtr earnings on Tuesday. I would hold off on buying this stock until after Tuesday. Tuesday will give an idea of how well this product is taking hold and the future earnings for this stock. Once earnings are established I can reevaluate the stock price to determine if it’s still a buy. If this stock has half the growth of Hansen Natural it will perform well over the next few years!
I originally heard about this company from Cramer, but I ran across this product while on the job. I took a field trip to a facility that my company works with on a daily basis and the gentlemen that oversees operations had a bottle full of soda. He mentioned he bought a soda maker and he loves it! He said it’s cheaper than store bought pop and his favorite flavor is root beer. I thought this was a great idea. I told my wife about it and said I may want a soda maker. A few weeks later SODA went public. You never know when an investment idea may arise. This was one of them! On another positive note, yesterday I received the mail and I came across the Bed Bath & Beyond add for the week. I couldn’t believe it when I saw a soda maker. I went crazy when I saw that! I think this stock will be a huge money maker. Check it out for yourself! For more information visit
http://www.sodastreamusa.com/default.aspx
If you are willing to take some risk this could be the stock for you. This is the perfect opportunity for growth. I think I’m going to ask for a soda maker for Christmas!
That’s it for SODA! In closing I want to touch on the market in general.
Stocks have been performing very well and I like it! The economy is turning and the majority of companies are making money. 2011 should be a good year for stocks. Keep buying your favorite stocks on pullbacks and sell a portion of your winners on up days like yesterday.
Have a great day! Enjoy the turkey.
Clay-
Monster Status (Stocks I like)
Apple (AAPL)
Caterpillar (CAT)
Weatherford International (WFT)
Westport Innovations (WPRT) up 5.16% yesterday
Thursday, November 25, 2010
Thursday, November 18, 2010
Was the GM IPO a success? (Initial Public Offering)
Today GM went public and it started off with a bang! The stock opened up at $35.00 a share. That's a 6.0% move to the upside right out of the gate. The demand for this stock out-stripped the supply as GM was up higher than the initial IPO price of $33.00. At one point during the day the stock reached a price of $35.99 a nice solid 9.0% gain for those who had the opportunity to cash in at the top of the trading day. So was the IPO a success?
It closed up on the day. I suppose with the increased price range from last week that the stock was priced just right. GM came out to do one thing and that was to raise money. The government stake has been reduced and GM is back in business. So yes the GM IPO was a success! I'm used to seeing IPO's where the stock has double digit gains on the first day. The difference in GM and other IPO's is many investors know what GM is capable of. GM can make money now that they have cleaned up their act and emerged from bankruptcy. They are leaner and in a perfect position to take advantage of the upswing in the economy. With the continued improvement in the job market and the American consumer beginning to spend more money on discretionary items, selling cars is the perfect business to be a part of.
Everyone likes a new car! With the skepticism of GM emerging from bankruptcy behind them, I believe many investors will want a piece of the pie. So what if the stock didn't pop up huge today! The price range shifted towards the upper end and the demand was still there. As long as the demand continues to be strong the stock will go higher. I'm a buyer at $32.00 a share as an initial entry for this stock. The volume will dry up over the next couple of days and the stock should drift close to this price. If you can't wait, be my guest and by the stock, but remember to buy a small portion initially and increase your position on weakness over a couple of weeks. GM was and still has the potential to be the great company it once was before it collapsed. Everyone deserves a second chance and GM has plenty to prove this time around. Now that GM is off to a fresh start they can now focus on taking back the market share they gave up from all of the turmoil.
The only negative I have is GM still has to eventually decrease the government's stake in the company. Being in business with the government is never a good thing. I guess you can compare it to debt. Once the government is out of the picture GM can make any decision they like without the input of taxpayers. GM will prevail! Once again I'm a buyer at $32.00 a share. I may be conservative on my entry of this IPO, but if I buy right I will be able to sell right for a profit. In the end it's all about investing for future earnings and I see plenty of good quarters ahead for GM.
Happy trading!
Clay-
It closed up on the day. I suppose with the increased price range from last week that the stock was priced just right. GM came out to do one thing and that was to raise money. The government stake has been reduced and GM is back in business. So yes the GM IPO was a success! I'm used to seeing IPO's where the stock has double digit gains on the first day. The difference in GM and other IPO's is many investors know what GM is capable of. GM can make money now that they have cleaned up their act and emerged from bankruptcy. They are leaner and in a perfect position to take advantage of the upswing in the economy. With the continued improvement in the job market and the American consumer beginning to spend more money on discretionary items, selling cars is the perfect business to be a part of.
Everyone likes a new car! With the skepticism of GM emerging from bankruptcy behind them, I believe many investors will want a piece of the pie. So what if the stock didn't pop up huge today! The price range shifted towards the upper end and the demand was still there. As long as the demand continues to be strong the stock will go higher. I'm a buyer at $32.00 a share as an initial entry for this stock. The volume will dry up over the next couple of days and the stock should drift close to this price. If you can't wait, be my guest and by the stock, but remember to buy a small portion initially and increase your position on weakness over a couple of weeks. GM was and still has the potential to be the great company it once was before it collapsed. Everyone deserves a second chance and GM has plenty to prove this time around. Now that GM is off to a fresh start they can now focus on taking back the market share they gave up from all of the turmoil.
The only negative I have is GM still has to eventually decrease the government's stake in the company. Being in business with the government is never a good thing. I guess you can compare it to debt. Once the government is out of the picture GM can make any decision they like without the input of taxpayers. GM will prevail! Once again I'm a buyer at $32.00 a share. I may be conservative on my entry of this IPO, but if I buy right I will be able to sell right for a profit. In the end it's all about investing for future earnings and I see plenty of good quarters ahead for GM.
Happy trading!
Clay-
Friday, November 5, 2010
A Great Deal Of Optimism On The Week!
Yesterday was a beautiful day for the stock market. The DJIA was up over 200+ Points. You couldn’t ask for a better day. I’m going to be all over the place today so pay attention!
Now that the election is behind us a lot of investors are coming back into the market. The worries about indecision have been put to rest. Now that the House is majority Republican the checks and balances of the House and Senate is in place. Will this change anything? I don’t know, but for some people they believe this will prevent or minimize the amount of anti business bills to pass. Politics isn’t my specialty! I’m only concerned about the stock market. What the government does is out my control.
The first positive I greatly appreciated began with President Obama stating that he was receptive to talks about extending the Bush tax cuts. Reducing the amount of tax across all incomes is ideal to grow the economy. Less tax allows people to spend more money on goods and invest money back into small businesses to create jobs and allow opportunities for growth. I’m not rich and I get taken to the cleaners on paying tax. I don’t care who you are and how much money you make, when you have to pay higher taxes you’re going to get upset. Bring on the tax cuts! Tax cuts welcome! Another mention by Obama was natural gas. Natural gas backed by the government is great for Westport Innovations (WPRT) and the oil service companies. Companies like Weatherford International (WFT), Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BHI). Another good one would be Chesapeake Energy (CHK).
With higher commodity prices the energy sector should be perfect for some great returns. Over the past few days Weatherford (WFT) has moved up big. Yesterday it was up over 6.0%. I continue to back this company as the stock is cheap compared to its earnings growth. Westport (WPRT) reported earnings and from the earnings transcript business is good. It was beat up yesterday and is down as I’m writing do to the announcement that they will be issuing more stock, which in turn dilutes the current shareholders value. Usually this is a negative, but I believe this is a great opportunity to buy the stock lower. Remember Congress will reintroduce the energy bill in November for passage. Getting this bill to pass will boost Westport’s earnings drastically. This stock will move up so fast even Usane Bolt would be left in the dust! Lastly, higher commodity prices will sweeten the earnings for Caterpillar (CAT) as higher prices will boost demand for their machinery. I thought CAT would hit the low $70’s in price. I don’t think that is going to happen anytime soon!
The buying action over the past week continues to surprise me! Stocks should continue higher for the remainder of the year. I’m still looking for the big pull back, but I remain optimistic. Oh yeah how about that October employment number! October was a great month as we added 151,000 jobs. First gain in 4 months. Not bad!
Have a great day!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Now that the election is behind us a lot of investors are coming back into the market. The worries about indecision have been put to rest. Now that the House is majority Republican the checks and balances of the House and Senate is in place. Will this change anything? I don’t know, but for some people they believe this will prevent or minimize the amount of anti business bills to pass. Politics isn’t my specialty! I’m only concerned about the stock market. What the government does is out my control.
The first positive I greatly appreciated began with President Obama stating that he was receptive to talks about extending the Bush tax cuts. Reducing the amount of tax across all incomes is ideal to grow the economy. Less tax allows people to spend more money on goods and invest money back into small businesses to create jobs and allow opportunities for growth. I’m not rich and I get taken to the cleaners on paying tax. I don’t care who you are and how much money you make, when you have to pay higher taxes you’re going to get upset. Bring on the tax cuts! Tax cuts welcome! Another mention by Obama was natural gas. Natural gas backed by the government is great for Westport Innovations (WPRT) and the oil service companies. Companies like Weatherford International (WFT), Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BHI). Another good one would be Chesapeake Energy (CHK).
With higher commodity prices the energy sector should be perfect for some great returns. Over the past few days Weatherford (WFT) has moved up big. Yesterday it was up over 6.0%. I continue to back this company as the stock is cheap compared to its earnings growth. Westport (WPRT) reported earnings and from the earnings transcript business is good. It was beat up yesterday and is down as I’m writing do to the announcement that they will be issuing more stock, which in turn dilutes the current shareholders value. Usually this is a negative, but I believe this is a great opportunity to buy the stock lower. Remember Congress will reintroduce the energy bill in November for passage. Getting this bill to pass will boost Westport’s earnings drastically. This stock will move up so fast even Usane Bolt would be left in the dust! Lastly, higher commodity prices will sweeten the earnings for Caterpillar (CAT) as higher prices will boost demand for their machinery. I thought CAT would hit the low $70’s in price. I don’t think that is going to happen anytime soon!
The buying action over the past week continues to surprise me! Stocks should continue higher for the remainder of the year. I’m still looking for the big pull back, but I remain optimistic. Oh yeah how about that October employment number! October was a great month as we added 151,000 jobs. First gain in 4 months. Not bad!
Have a great day!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Thursday, November 4, 2010
Thursday Post On Hold! Cars!!!!
I have a ton to say, but it will have to wait until tomorrow. I had a little issue with my wife's car that I had to attend to. The stock market was stellar today! The past few days has really changed the perception on stocks and the future of the stock market. Stay tuned... I appreciate your patience.
Thank You,
Clay-
Thank You,
Clay-
Subscribe to:
Posts (Atom)