The stock was among the most discussed tickers on StockTwits.com Wednesday morning after an Israeli business newspaper reported that Israel-based SodaStream is discussing selling up to a 16% stake in the company to an unnamed buyer. Most investors speculate that either Pepsi (PEP) Starbucks (SBUX), or Dr. Pepper Snapple Group (DPS) is the likely suitor.
SodaStream's media contact declined to comment. Shares gained more than 11% on the report. Sentiment on the stock is 91% bullish, according to StockTwits' analytics.
However, some investors point out that the report could amount to little more than rumor. Long investors have bid shares up to 16X forward 2015 earnings, in part, because of the belief that a major soft drink maker could want to acquire the company. And somebody is bound to want to justify that price by floating questionable information, they argued.
$SODA PEP and Dr Pepper are not paying a 30% premium to buy into SODA come on, they would just buy the company, BS.