GO
Loading...

Thirsty for a Speculative Play?

Wednesday, 18 May 2011 | 6:51 PM ET
Is SODA Stock Sparkling?
SodaStream just this morning reported a stunning, knock-out quarter, which caused the stock to soar $10.26 or 23% in a single session, says Mad Money host Jim Cramer, and Daniel Birnbaum, CEO of SodaStream.

"Just because a stock has had a monster move higher, that doesn’t always mean it’s become more expensive," Cramer said Wednesday. "Sometimes, very rarely, but sometimes, a stock will actually get more attractive after a huge rally."

Take SodaStream International , for example. The Tel Aviv, Israel-based company makes home beverage carbonation systems. In other words, it's products allow consumers to make soda at home. Investors were unsure if SodaStream was just a fad or if it could turn into the next Green Mountain Coffee Roasters — the company that makes Keurig brand, single-cup coffee brewers and whose stock has climbed 3,170 percent over the next six years.

Much of the uncertainty surrounding SodaStream was removed Wednesday, as the company reported strong earnings results before the bell. It delivered earnings of 27 European cents a share, a 12 cent beat, on revenues that rose 50 percent year-over-year. Overall, unit sales of its soda makers were up 99 percent. In the U.S., where its products are just rolling out, sales have increased by 271 percent.

Needless to say, Cramer is bullish on SodaStream. He doesn't think it's a fad. In fact, he called it a "sexy speculative play." To learn more about the company, he chatted with CEO Daniel Birnbaum. Watch the video to see the full interview .

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
GMCR
---
SODA
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.