$SODA For Sale? Investors Bet On It.
Investors are buzzing about SodaStream, $SODA, and which beverage maker may buy a portion of the company.
The stock was among the most discussed tickers on StockTwits.com Wednesday morning after an Israeli business newspaper reported that Israel-based SodaStream is discussing selling up to a 16% stake in the company to an unnamed buyer. Most investors speculate that either Pepsi, $PEP, Starbucks, $SBUX, or Dr. Pepper Snapple Group, $DPS, is the likely suitor.
— Ron zim (@Ronzim) Apr. 16 at 01:03 AM
An email to SodaStream’s media contact for comment was not immediately returned.
Shares gained more than 11% on the report. Sentiment on the stock is 91% bullish, according to StockTwits’ analytics.
— TradeStoxx (@Congostockchat) Apr. 16 at 08:47 AM
However, some investors point out that the report could amount to little more than rumor. Long investors have bid shares up to 16X forward 2015 earnings, in part, because of the belief that a major soft drink maker could want to acquire the company. And somebody is bound to want to justify that price by floating questionable information, they argued.
$SODA PEP and Dr Pepper are not paying a 30% premium to buy into SODA come on, they would just buy the company, BS.
— Vinesh Guruwara (@vpg_999) Apr. 16 at 08:48 AM
Cashtaggers pointed out that a Stifel Nicolaus analyst, who has a sell rating on the stock, said the report was unsubstantiated.
$SODA 8:49 a.m. SODA investment report 'unsubstantiated and unlikely,' says Stifel // Detwiter also says sales tracking way below estimates
— Daniel Mardorf (@danielmardorf) Apr. 16 at 09:11 AM
But there’s reason to believe a big buyer would be interested in SodaStream, say bullish investors. In February, the Coca-Cola Company, $KO, closed a $1.25 billion 10% stake purchase in Green Mountain Coffee Roasters, $GMCR. The companies are developing a cold Keurig machine that would serve carbonated beverages. The news kicked off speculation that a Coca-Cola competitor would grab SodaStream.
$SODA rumor makes sense folks. With COKE now in the game these other players have GOT to get in this market.
— TradeStoxx (@Congostockchat) Apr. 16 at 08:33 AM
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