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SodaStream International Ltd. (SODA) stock is dropping almost 40% today after earnings were worse than expected. SodaStream International Ltd. (SODA), a Jim Cramer stock pick @ $68, is a maker of in home soda machines similar to the Green Mountain Coffee Roasters (GMCR) Keurig's. SODA is currently trading at $42 and is in free fall this morning.

AIRPORT CITY, Israel, Aug. 11, 2011 /PRNewswire via COMTEX/ -- SodaStream International Ltd. (SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and six month periods ended June 30, 2011.

Second Quarter 2011 Highlights (comparisons show second quarter 2011 as compared to second quarter 2010)

Revenues increased 38% to Euro 53.3 million

Americas revenues increased 136% to Euro 11.3 million

Adjusted diluted earnings per share was Euro 0.29 or $0.42*

Revenue from soda makers increased 36% to Euro 22.7 million

Revenue from consumables increased 54% to a record Euro 29.8 million

Flavor units increased 96% to a record 6.1 million

CO(2) refill units increased 34% to a record 3.2 million

Americas soda maker units increased 224%

 

 

Tags: drops, soda, sodastream, stock

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I don't know, seems way overdone!  I think as long as you keep a stop at $40 or $41, you will do fine around $42 but now it's bouncing up near $44
I purchased some at 42
I'm gonna start up here as well at support
why is it going down? it seems the earnings were just fine. everything "increased" right? please explain
The only thing I can think of is forced selling.  SODA has been a huge winner so investors in trouble tend to sell the winning stocks.  There is no doubt in my mind that the recent stock market crash will shut down some hedge funds.

The report says the SODA beat earnings: "SodaStream International Ltd reported Q2 EPS of $0.35, $0.13 better than the analyst estimate of $0.22"

 

Yet the stock still got hammered. thats why i bought a position at $43, i am hoping support holds at 42 and SODA closes up in the 50 to 55 range

i have a stop at 40, but i am hoping for a bounce up to 50 today
thats what I mean, I sense something fishy on this for some reason

SODA w/ a $40 stop is probably the best play.  $40.50 is the next major low it must hold so if people are keeping stops around that level, $40 could hold on a plunge.

I know the price is great right now, but why sell. It should be up, you know what I'm saying?
forced selling from hedge funds? I dont really know but I felt it was worth a small investment. It seems to have held support at 42 and is now up around 44

UPDATE 2-SodaStream sees higher costs in 2011, shares plunge

1:10 pm ET 08/11/2011 - Reuters

(Adds details from analyst note in paragraph 3, updates share movement)

* Q2 EPS 0.24 euros vs 0.17 euros a year ago

* Q2 rev up 38 pct

* Reiterates 2011 outlook

* Shares down 41 pct

BANGALORE, Aug 11 (Reuters) - SodaStream International Ltd posted a higher quarterly profit on strong sales of its soda makers, but kept its 2011 outlook and warned share-based compensation costs would be higher than expected.

Shares of the Israeli company, which sells products that allow customers to add carbonation and flavoring to tap water, fell 41 percent, making it the biggest percentage loser on Nasdaq.

"Investors were discounting full-year growth ahead of the company's guidance range and expected SODA to at least push top-line guidance higher this morning," JP Morgan analyst John Faucher wrote in a note to clients.

SodaStream forecast full-year sales to grow 30 percent and net income 60 percent.

The company, which went public in November 2010, said share-based compensation costs in 2011 would be 4.3 million euros, up from previously expected 3.7 million euros.

SodaStream makes carbon dioxide refills, reusable carbonation bottles and flavors for carbonated water, apart from soda-making machines, all targeted at the home market.

The company had told Reuters in May that it plans to launch products for use in offices, restaurants and the hospitality industry next year.

For the second quarter, net income more than doubled to 5.1 million euros ($7.23 million), or 24 euro cents a share, from 2.1 million euros, or 17 euro cents a share, a year ago.

Shares of the company were down 39 percent at $42.25 in afternoon trade. About 12 million shares have changed hand in heavy trade on Thursday.

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