Tuesday, January 15, 2013

Mixing Drinks with SODA


I just put some of the proceeds from the AIG and ACI sells to work in SODA at $49 and will add on above $50 (stops beneath $45). I love potential for this move because the stock seems undervalued with a PEG of .8 and it has a short float of 40%. The reason for this is that no one understands the story, which is not making sodas for kids, its making mixed drinks for adults. This Christmas several of my friends requested Sodastream for one reason, vodka mixed drinks. With over 60 flavors, every hipster and wannabe mixologist has to have one of these for entertaining. I think we are starting to see investors recognize this demand which will  squeeze shorts for the next 43 days until earnings on Feb 27. If earnings are what I believe they could be, this stock could be back at all time highs ($80) before the end of the 2nd quarter.

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