SodaStream (SODA) Gets Punished For Sins of Its Brother

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SodaStream (Nasdaq: SODA) is under heavy pressure Thursday as the company has found itself lumped in with today's blow up du jour - Green Mountain (Nasdaq: GMCR).

Green Mountain posted dreadful second quarter financial results and warned of worst times ahead.

The two companies are different but have some of the same characteristics. They are both high-multiple momentum stocks, they both try to capitalize on a razor/razor blade model and they are both heavily shorted.

The 9% downside action in SODA pales in comparison to the 46% bloodbath in Green Mountain. However, that's no condolence for SODA shareholders as the company's has done nothing wrong - yet. It's like getting in trouble for something your brother did. Not cool.

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