SodaStream International (SODA)

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