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Buying a little SODA (The Stock)

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Over the last few months, I've hounded an investing friend of mine multiple times about where she's investing. We are typically like-minded and she often has ideas on things that I overlook. The only problem is that we're too like-minded and agree that the big stock market run-up has left us nervous about "buying high."

Plus, I'm a bargain-hunter when it comes to stocks. I enjoy buying a share of Facebook at $20... not so much at $57. That's not to say that Facebook can't go up to $80 or higher, but that I feel better getting (what I believe to be) a great company at a low price. The problem is that there aren't too many stocks on my watchlist trading at low prices nowadays.

Enter SodaStream (NASDAQ:SODA). Yes the same SodaStream that I called my product of the year 2010.

I firmly believe that everyone should have a SodaStream in their home... especially for people who don't want to drink soda. I know what you are thinking:

"Wait, what?!?! Lazy Man, that doesn't make any sense."

The SodaStream appliance simply carbonates water... nothing more. You can make carbonated water super cheaply. Add a very little bit of juice or True Orange and you've got yourself a beverage that's healthier than 99% of what's out there... tastes great too. You get to ensure that you have great quality water (just say away from RainSoft) and keep out artificial sweeteners.

In short, you can use it to make healthier decisions, while saving money. That's why I feel it should have a place in every home.

Don't take my word for it though, ABC had David Zinczenko (of Men's Health fame) covering the product yesterday:

So why invest in the company? Yesterday they announced they were going miss revenue and profit expectations by 1%. Instead of $567 million in revenue, they expect "only" $562 million in revenue. Wall Street responded with a sell off that brought the stock down 25%. I think that's a little like cutting off someone's arm because they have a paper cut... it just doesn't make any sense. Even with the small adjustment the company has grown revenues and profits significantly every year.

The result is a stock that still looks pretty strong, a company and a product I believe in, at a highly discounted price (a P/E of around 16.5). Sure the company could go down or even announce that things were worse than they anticipated, but at this point, the stock seems significantly cheap at around $38... especially when it has traded at over $70 twice over the last three years.

I'm not The Most Interesting Man in the World... I don't often invest in individual stocks, but when I do I invest in SodaStream.]

Last updated on November 26, 2014.

This post deals with: ... and focuses on:

Health, Investing

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4 Responses to “Buying a little SODA (The Stock)”

  1. Abigail says:

    My husband guzzles Mt. Dew but knock-offs don’t work for him. Have you tried the Mt. Dew? Or is it all the same syrup you’d get in restaurants?

  2. Lazy Man says:

    I haven’t tried it, but my taste buds are not the best. My guess is that it is similar to the knock-offs. I’ve heard it is possible to buy the real syrup from restaurant supply stores. Then you just have to figure out a way to get out the right small amount and mix it in after you’ve made the carbonated water.

    The real money savings for me is in mixing the carbonated water with a small amount of juice or True Orange as I’ve written about before.

  3. […] SodaStream – I have written about it enough. I love the product. It saves me money and makes me healthier. I even bought the company's stock. […]

  4. […] And finally the company and stock – Buying a little SODA (The Stock) […]

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