SodaStream fizzles as buyout rumors fadeJune 6, 2013: 11:25 AM ET
SodaStream lost some of its fizz Thursday after PepsiCo debunked rumors that it might buy the soda maker.
Earlier this week, shares of SodaStream (SODA ) rallied on chatter that Coca-Cola might be interested.
JPMorgan analyst John Faucher said it was more likely that SodaStream would strike up a partnership rather than be bought outright.
For anyone who thought SodaStream was just a fad, consider this.
The company has been around, in one form or another, since 1991. It went public in 2010 and has garnered a loyal following along the way.
It's also been a darling of short sellers for much of this year, though those betting on a stock decline, have started having second thoughts. That may be another reason the stock has gotten a decent boost.
Whatever the reason, SodaStream was drawing a lot of attention from StockTwits traders.
"The report is completely and totally untrue," a PepsiCo spokesman reiterated to me.
And as JPMorgan's Faucher points out, "We don't see much in the way of distribution leveraging" to justify a deal.
A Coca-Cola spokesman declined to comment, saying the company doesn't comment on market rumors or speculation.
Interesting point. During premarket trading, the stock surged to $100 before backing off. But if you look at the short interest, it looks like those in the "betting on a decline" camp have been paring back all month.
Of course, short interest of 6.98 million shares is nothing to sneeze at. But that's down from the 8.2 million in January.
Everyone's a critic (#humor). I think I'm more in Faucher's camp. With a partnership, you'd get the best of both worlds.
Is that irony? "fresh" soda. Anyone I've spoken with who owns a SodaStream machine is fiercely loyal to it. I think there might even be a soda lovers club out there somewhere, that's how much people who own those machines love them.