SodaStream: Short Squeeze or Growth Stock
SodaStream International Ltd (NASDAQ:SODA) shares have rallied 40% in the past 3 months yet the short interest remains at 55%? Yahoo clocks the short interest on SodaStream at 55%, finviz says 45%. Needless to say, it's unbelievably high for a stock that continues to rally.
Take a gander at the 3 month move on SodaStream, it's crazy pills:
Last week Zacks have SODA a 'Strong Buy' rating and Oppenheimer upped their target price from $55 to $60. Sodastream is trading at $51.56 today and 4.71% below its 52-week high. It appears the shorts are betting SodaStream will blow their Q4 2012 earnings call on Feb 27th. It's a plausible move as expectations are high for SodaStream to deliver next month.
SodaStream has beat the street for the past 8 quarters. The company raised its expectation for Q4 and 2012 results after it reported Q3. SodaStream expects revenue growth of 46% for 2012, up from the prior expectation for 40% increase. Bolder yet as SodaStream expects net income will jump 59% year over year, compared to the earlier guidance for growth of 55%. If the company doesn't deliver or beat on those numbers the shorts are going to cash in big. If you can put your faith and money on SodaStream's management then it looks like easy money from here, but are you willing to do so?
Mastery would love to believe that this home beverage carbonation system is the next holy grail and not a fad. The entire world will soon know about SodaStream with their Super Bowl commerical on Sunday (Feb 3rd). Place your bets according to your own risk.
Here's a quick rundown of what SodaStream is all about.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- NatGas Crashes Most In 10 Months As Polar Vortex Arrival Delayed | ZeroHedge
- This Factor Could Propel Gold Mining Stocks Much Higher In 2015 | ZeroHedge
- Competitive Theories: “Deflation Warning” vs. “Inflation Is Nearly Everywhere” | Financial Sense
- Don't Tell Germany Draghi Is About To Monetize 90% Of Bund Issuance | ZeroHedge
- North Korea Warns Of Attacks Against White House, Pentagon And Entire "Cesspool Of Terrorism" That Is America | ZeroHedge
- Police Reportedly Rage, De Blasio's "Hands Are Dripping With Blood" | ZeroHedge
- The New Boremal | ZeroHedge
The most relevant financial news and articles from the Internets
- The World's Deepest-Dwelling Fish Is Actually This Strange-Looking 'Eel... | Business Insider
- Wall Street Is Calling For The Resignation Of An Investment Billionaire | Business Insider
- Juve lead Roma as battle heats up for third | Business Insider
- Lego Is for Girls | BusinessWeek
- Virginia Town is Best Place in the U.S. to Raise Kids | BusinessWeek
- Google Has Buried Some Little-Known Tricks In Hangouts That Will Liven Up Your Chats | Business Insider
- In the dogfight over posh airline food, the sky's... | Business Insider