SodaStream Bubbles Up on Best Buy Deal

SodaStream SODA is skyrocketing today, up over 6% over yesterday's close. The rise above $74 a share comes after the company's products began selling at retailer Best Buy BBY. So what product is it that has investors bubbling over with confidence in the SodaStream stock? The company manufactures and sells an ingenious product: a home version of a carbonated soda fountain. Brilliant, right? Who among us hasn't wondered how great it would be to grab carbonated beverages at home without resorting to using and recycling thousands of plastic bottles or aluminum cans? SodaStream has the added benefit of being an international player; its profits are not tied to just the American market or American fads. In fact, the company, headquartered in Tel Aviv, Israel, is currently building another new plant in its home country. They also sell and distribute throughout Europe, North and Central America, Israel, South Africa, Australia, New Zealand, and east Asia. How can you get in on the action? Retailers across America sell the SodaStream system, not just Best Buy. Anywhere that medium or high-end home appliances and homewares sell would be a good place to start, as well as Amazon.com and other online retailers. The company sells not just the soda makers themselves, but also the exchangeable carbon-dioxide cylinders (you trade them in like you would a propane tank), beverage flavorings and even accessories like bottle cleaning materials and ice cube trays. Overall, you can find SodaStream products in 40,000 or so stores across 41 countries This is not to suggest that SodaStream is a sure bet for future growth. While the company has entered 24 new markets in the last three years, they're operating in a heavy moat market. Future growth could be tempered by competition from as-yet-unseen companies. Then again, Deutsche Bank DB has offered some initial positive comments, and the stock clearly has some momentum. Sodastream Intl Ltd will report quarterly earnings on July 28, so investors have a few more weeks to speculate on whether or not to buy, short, or get out of the way. Will SODA be a bubble that bursts in your portfolio?