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
- The 2014 Stealth Bear Market – A Transition or a Top? | Financial Sense
- Night Owl Open Forum | iBankCoin.com
- Santelli Slams The Fed As "Weak-Data"-Dependent; Lacy Hunt Warns "We're Not On The Right Path" | ZeroHedge
- Potential Intraday Runners | iBankCoin.com
- Great Graphic: Slowing of World Trade Growth and Globalization | Financial Sense
- U.S. Regulators Easing Mortgage Credit Requirements | Financial Sense
- Kill The Shorts | iBankCoin.com
The most relevant financial news and articles from the Internets
- Russia central bank hikes interest rate to 9.5% from 8.0%... | Business Insider
- Laptop Computer Reviews - BusinessWeek | BusinessWeek
- San Francisco Giants Win World Series On Controversial Decision In Final Inning | Business Insider
- High School Football Team Thinks The Game Is Over, Loses In Painful... | Business Insider
- Starbucks Tumbles After Reporting Weak Earnings | Business Insider
- Meet Our New West Coast Bureau Chief, Matt Rosoff | Business Insider
- Japan Just Boosted QE And The Nikkei Exploded To A 7... | Business Insider