SodaStream International Ltd. (NASDAQ: SODA) has been a very controversial growth stock that went from red hot to burned out fad almost as fast as it started. Shares are surging on news that Kraft Foods Inc. (NYSE: KFT) is entering into a strategic partnership for the manufacturing, marketing, distribution and sale of Kraft branded flavors that will be used for the SodaStream personalized soda-making system. This sounds a lot like a challenge to Crystal Lite and other beverage flavors, but this does require that buyers have the SodaStream machines unless they just want new flavors of water.
SodaStream shares are up more than 8.5% at $40.99 in early trading indications and to show how volatile it has been this one has a 52-week range of $27.00 to $79.72. Some may think this is a saving grace for SodaStream but it may be more of a verification of a business plan rather than an entirely new line of business. So far investors are taking the latter stance rather than the more conservative stance.
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