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SodaStream fizzles as buyout rumors fade

June 6, 2013: 11:25 AM ET

SodaStream has a loyal following but talks of a takeover may be overblown.

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.

If either panned out, it would be somewhat ironic. Earlier this year, SodaStream's Super Bowl ad, which touted its reusable bottle in a diss to Pepsi (PEP) and Coke (KO), never aired.

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.

Related: SodaStream's bubbly rise

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.

joshing
$SODA "PepsiCo shoots down report of SodaStream talks" http://stks.co/hYlG

"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.

ronin245
$SODA see the pump then the dump, they run it up to get shrs off, totally legal but kind of shady

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.

Mathematics
$SODA they'll be bought and you'll never see the product ever again lol

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.

momomiester
$SODA up which shows you this market is about momentum and technicals. There is no logic. The demand for "fresh" soda is unprecedented.:)

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.

bradloncar
You kind of get the impression that if $PEP or $KO bought $SODA, they might kill the product.

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