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
- VIX ETF Surges Off Record Low Crushing Contango Cruisers | ZeroHedge
- Social Media Facade Falters - Twitter Crashes 28% From Post-Earnings Exuberance | ZeroHedge
- The Job You Want, the Pay You Deserve, and the Education You Can Afford | Financial Sense
- As China Admits It Lied About Its Local Debt Levels, Local Billionaires Are Quietly Liquidating Their Assets | ZeroHedge
- Rent Bubble = Housing Bubble = Rent Bubble | ZeroHedge
- Frontrunning: August 3 | ZeroHedge
- 30Y Treasury Yield Plunges To 3-Month Lows As S&P Breaks Key Technical Support | ZeroHedge
The most relevant financial news and articles from the Internets
- Commerzbank says profits almost triple to 280 million... | Business Insider
- Lego Is for Girls | BusinessWeek
- Which Is America's Best City? | BusinessWeek
- This might be the only major difference between the next iPhone and the iPhone 6 (... | Business Insider
- The US says it will defend Syria rebels with... | Business Insider
- Four threats Olympics security chiefs need to stop | Business Insider
- The interesting story of how Marissa Mayer influenced the CEO of the... | Business Insider