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.
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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