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austinhippie (71.65)

Is SODA this year's CMG or GMCR? At least I'm having fun!



January 13, 2014 – Comments (1) | RELATED TICKERS: SODA , GTLS , CMG

Recently I have invested in SODA and GTLS because they seem very similar to how GMCR and CMG were late in the summer / early fall of 2012.  I think of SODA as parallel to GMCR because people wondered if it was a fad that would pass and have its market share taken by competitors. And like CMG, GTLS has some staying and growing power.  All of these cases look to me like irrational Mr. Market moments.  I am grateful for the extra help the Nasdaq shorters gave to driving down the price of SODA today.  It was much more overdone than it would have been if bigger players hadn't gotten sucked in.  It may seem odd to be having fun with this, but then I always did like turbulence on airplanes and roller coasters that go upside down and backwards - some people would say that I have guts of steal when it comes to the market - I just think I have a very long time horizon and I'm enjoying myself. So we'll see how we are doing with these two investments six months and two years down the road.  

Also, based on some other research of the day, I am following FHCO.  I remember when that FC1 hit the market.  It's now been about 5 years since FC2 became available in the US.  I liked learning more about this company today.  With a very resonable dividend, a stock repurchase program that does appear to be adding value for shareholders, and significant insider buying, these shares look like a very good company at a decent price.  If it dipped into the mid to low $7 range, I'd be more tempted.

I currently own: MNST, PRAA, GTLS, SODA, MCC, WPRT, and QCOR.  Together these holdings add up to 58% of my portfolio. 

1 Comments – Post Your Own

#1) On January 13, 2014 at 8:22 PM, awallejr (29.57) wrote:

I don't think SODA to GMCR is a proper comparison.  Apples to oranges.  GMCR makes really good tasting coffee.  SODA doesn't.

I understand the thesis behind it but there was a similar product decades ago and it eventually failed.  People really are walking away from sodas and going towards basically water.  Why do you think KO has been having issues.

Since you have MNST I would dump SODA.  You also must have an iron stomach with those stocks lol.  QCOR I personally do like but that sucker will swing wildly.  Selling puts seems the way to go because of the high premium you get.

Best of luck.

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