2-Star Stocks Poised to Plunge: SodaStream?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home beverage carbonation system specialist SodaStream International (NAS: SODA) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SodaStream's business and see what CAPS investors are saying about the stock right now.

SodaStreamfacts

HeadquartersAirport City, Israel
Market Cap$754.7 million
IndustryHousehold appliances
Trailing-12-Month Revenue$345.6 million
ManagementCEO Daniel Birnbaum (since 2007)
CFO Daniel Erdreich (since 2007)
Trailing-12-Month Return on Equity15.9%
Cash/Debt$56.6 million / $0
CompetitorsVikingsoda AB

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 19% of the 595 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, meeyatch69, touched SodaStream's rather faddish qualities:

seems like there might be a reality check for the at home soda biz. Like most environmental efforts, after the shine wears off the extra effort for the perceived benefit becomes a pain in the butt. As for the health/taste benefit, there are adequately cheap options available that are much more convenient. My mother has a revolving stream of new gadgets on her counter top. After the shine wears off, the replenishing of flavor bottles will stop. This doesn't bode well for the razor/blade model Sodastream banks on.

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The article 2-Star Stocks Poised to Plunge: SodaStream? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of SodaStream International. Motley Fool newsletter services have recommended buying shares of SodaStream International. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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