How Sodastream International Ltd (SODA) Could Change Everything

Apparently, according to the New York Post, PepsiCo, Inc. (NYSE:PEP) was most notably involved in those discussions and only interested in buying SodaStream’s massively profitable CO2 refill business — something I had pointed out a month earlier simply wouldn’t make sense (regardless of whether Pepsi wanted the entire business or not) when we consider such a move would both cannibalize Pepsi’s existing bottle-and-can-centric operations, as well as anger bottlers who rely on Pepsi’s current business model to survive.

As a result, SodaStream’s Play stands tall as an encouraging long-term move by management to continue building their business en route to the previously outlined goal of nearly doubling sales to $1 billion by 2016.

If that happens, and with shares of SodaStream currently trading at 29.3 times last year’s earnings and 20.4 times next year’s estimates, the stock could prove an absolute bargain at today’s levels.

The article Why SodaStream’s Play Could Change Everything originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Apple. The Motley Fool recommends Apple, Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of Apple, PepsiCo, and SodaStream.

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