Rumors typically come to light for a reason. One of the companies might want to test the market perception of a deal or certain information has been abstracted from meetings that might be flawed. Either way, investors in this fast growing home beverage maker shouldn’t be flooding the streets to accept a deal at these levels.
With the large soda markets in the Americas hardly tapped and earnings surging, investors have no reason to cash out now. A market cap in the $5 billion to $10 billion range could be more reasonable when household penetration approaches the 5% level in the US, Brazil, Canada, and Mexico. There’s no reason to abandon ship now when vast growth potential exists.
Mark Holder and Stone Fox Capital Advisors, LLC own shares of SodaStream. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.
The article There’s Huge Potential Growth in the Americas for SodaStream originally appeared on Fool.com and is written by Mark Holder.
Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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