A little anecdotal evidence goes a long way.
It's one thing to see the numbers on the page. It's another
thing to be out in the marketplace and actually see what a company
This kind of boots-on-the-ground reconnaissance is one of the
best ways to find what Icall The Next Big Thing.
In the past few months, I've been all over the country -- in
more airports than I can count. And, as I always do, I've made it a
point to take a look around. And what I see, increasingly, is store
displays for the SodaStream, manufactured by
This $730 million Israeli company -- which has outpaced the
S&P 500 during the past six months -- makes specialized
machines and supplies that let people make custom soft drinks at
I first told my
readers about SodaStream a little over a year ago. At the time, the
product was only available on a limited basis and was not being
advertised. Today, it's in practically every major retailer
(including Wal-Mart, Target and BestBuy) and you might even see a
commercial or two on TV for the product.
Back in March I explained how, if you're looking for a solid
growth stock, you should forget about
and think about buying SodaStream instead -- especially after a
recent drop in the share price. I was a little early in my call
(the stock dropped a little further before rebounding back above
where I recommended them), yet I still think this stock has
Unsurprisingly, these machines are flying off the shelves --
especially ahead of the holiday season. As a diabetic, I like that
the device has a variety of sugar-free options. For families that
drink a lot of soda, the stuff is actually cost-effective when
compared with name brands like Coca-Cola and
after the cost of the machine has been recouped. These savings can
be significant -- or at least perceived as appreciable -- which
might push a consumer into the roughly $100 purchase.
I predict that SodaStreamwill be a big hit this holiday season,
based on the retail footprint that I've noted in a wide range of
stores. Theshares are up about 5% since I last recommended them,
and they look very appealing today. The company is likely to see a
majority of its sales in the holiday fourth quarter, and if these
results exceed expectations, there is a good chance that it will
emerge as a big winner in the first quarter 2013.
SodaStream's topline grew nicely from 2010 to 2011, and
itsbottom line nearly doubled, as it pushed more product through
thefixed cost of maintaining an international sales channel. So far
this year, results have been strong. And the company has no
Action to Take -->
Head to the stores where you will be shopping and do a little recon
on your own. Find the SodaStream display and keep an eye on it
during a Saturday morning, particularly as we inch closer to the
holidays and people do their last-minute gift shopping. Ask the
sales staff or a manager how well they're selling. If you like what
you hear, consider buying some shares. I don't predict they'll
deliver the kind of home-run, multi-bagger gain I typically look
, but I still think they'll perform nicely in a regular growth
P.S. -- When you get in on the ground floor of a promising new
trend or technology, the profits that can follow can change your
life forever. Andy Obermueller's Game-Changing Stocks is entirely
devoted to finding the next big, life-changing investing idea. See
his latest report for more ground-breaking investment plays.
Andy Obermueller does not personally hold positions in any
securities mentioned in this article. StreetAuthority LLC does not
hold positions in any securities mentioned in this article.
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