Huge Bear - Sell Sodastream After Earnings Come Out

Sodastream has rallied today with an abnormally high volume. The stock is now over $42.50. Sodastream is highly overvalued and could crash soon-big time. Sell soon after the earnings report comes out.

Sodastream has created a carbonation machine that allows consumers to transform water into soda. I was in favor of this stock when it was at the price of $30 (though I  unfortunately have no proof) but even when I was looking to buy this stock I knew it only had short-term potential. The reason Sodastream's stock has soared is because it presumably had a great holiday season. I do believe the item sold in America in abundance during this past holiday season and that the earnings report will come out very high, making the price go even higher when the earnings are revealed. However, Sodastream does not have a product suited for America. In Europe, the business model works. In America, Sodastream is just another fad that has overcome the nation. Here's why:

 Sodastream has several different pitches it uses to promote the product. For one, Sodastream creates soda at a cheap price. But soda in America is already cheap! Considering the cost of the machine and additional flavors, Sodasteam turns out to be more expensive. Another one of Sodastream's "advantages" is that it is convenient. In America, it is much more convenient to just go to the store and pick up a nice 12-pack of soda rather than to pour water into a machine and add flavor packets. The only actual advantage Sodastream has to the American market is keeping the environment cleaner. This is the one thing Sodastream has to offer, besides its cool and fun-looking design that has attracted it to so many Americans as a stocking stuffer. I hate to admit this sad truth, but the fact that Sodastream is green will not make it sell; as of now, most Americans aren't helping out or caring about the environment as much as they should. Why would they go out of their way to buy something more expensive and less convenient to help the environment?

Sodastream has sold so well over the holiday season because it seems like a perfect idea for a gift. However, as Americans will soon realize, these soda makers are not practical at all for Americans. Sodastream could still do well in Europe, but they will not be able to grow and be successful internationally. Do yourself a favor and ring in the cash right after the earnings come out by selling on the earnings report day. It's been a good run, especially if you got in on this stock at $30, but it has to end. Hit that Bear's Eye!