This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

10 Stocks With Huge Rebound Potential

SodaStream International

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Another beaten-down stock with a huge short interest is SodaStream International (SODA), which, along with its subsidiaries, is engaged in developing, manufacturing and marketing home beverage carbonation systems and related products. This stock is actually up in the last three months by 26%, and for the full year it's up by over 66%. That said, over the past couple of weeks, SodaStream has dropped from its 52-week high of $63.20 to its current price of close to $52 a share.

This company has a market cap of $1.05 billion and an enterprise value of $987 million. It's a high-growth stock that trades at a premium multiple of 53 times trailing earnings and 39 times forward earnings. SodaStream is forecasted to growth its earnings over the next five years at over 33%, which again is why this stock fetches such a high multiple.

Lots of traders are concerned that SodaStream could turn into a fad stock, but when the company is seeing its revenue and adjusted earnings grow by 50% and 141%, respectively, in its latest quarter, it's hard to slap that kind of label on the stock so quickly. As long as SodaStream can continue to penetrate the home market with cheap soda-making machines, then you're going to see sales continue to skyrocket.

Over the last two quarters, SodaStream has sold 1.3 million of its popular home soda-making starter kids. The company estimates that it has 4.5 million active customers who use its product. That tells me that SODA is still very early into its grow story when you consider how much more penetration into the U.S. market -- 307 million people -- is possible.

From a technical standpoint, SODA has pulled back in the last few weeks very close to its 50-day moving average of $50.02. I would look to buy this stock any weakness as long as it holds above that 50-day and you don't see any expansion of volume selling through that level. Add to this position aggressively if SODA takes out some near-term resistance at $55 a share.

The current short interest as a percentage of the float for SODA is a huge 45.4%. The bears have also been increasing their bets from the last reporting period by 14.5%, or by around 506,866 shares. If this company continues to execute on their growth strategy, then the short-sellers here are in for a world of hurt. This one you have to watch in case we see a market rebound, because it will soar if we do.

Stock quotes in this article: NILE, SODA, GS, PAL, SINA, SOHU, BIDU, YOKU, CYOU, DANG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs