Jim Cramer Spills His Soda (SODA)
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Price: $143.68 --0%
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Nothing like kicking a dead horse...
Shares of high-flyer SodaStream (Nasdaq: SODA) are getting punched in the gut Tuesday after Jim Cramer, Mad Money host and former bull on the stock, said this momentum stock needs to be sold after its recent weak guidance.
The stock is down nearly 8 percent Tuesday, which is on top of the 32 percent slide since providing the lackluster guidance on August 11.
Cramer said the guidance provided by SodaStream was "just awful" as it implied a slowdown in growth to 20 percent in the second half of the year, down from the 40 percent growth in the first half.
Cramer said "This is not the kind of thing you want to see from such a high-flying growth stock."
He also noted that the company is having issues at Costco (Nasdaq: COST).
Cramer said the lesson for investors is to take profits when you had to chance in momentum names. You must use discipline when playing momentum stocks, he stated.
Investors will remember in May, Cramer and fellow CNBC host Herb Greenberg, a bear on the stock, held a taste test of SodaStream’s product. SodaStream won.
Shares of SodaStream continued higher from that May segment as the hype-machine entered overdrive. That was until the earnings and guidance. With so much hype, disappointment was inevitable. Pop!
Shares of high-flyer SodaStream (Nasdaq: SODA) are getting punched in the gut Tuesday after Jim Cramer, Mad Money host and former bull on the stock, said this momentum stock needs to be sold after its recent weak guidance.
The stock is down nearly 8 percent Tuesday, which is on top of the 32 percent slide since providing the lackluster guidance on August 11.
Cramer said the guidance provided by SodaStream was "just awful" as it implied a slowdown in growth to 20 percent in the second half of the year, down from the 40 percent growth in the first half.
Cramer said "This is not the kind of thing you want to see from such a high-flying growth stock."
He also noted that the company is having issues at Costco (Nasdaq: COST).
Cramer said the lesson for investors is to take profits when you had to chance in momentum names. You must use discipline when playing momentum stocks, he stated.
Investors will remember in May, Cramer and fellow CNBC host Herb Greenberg, a bear on the stock, held a taste test of SodaStream’s product. SodaStream won.
Shares of SodaStream continued higher from that May segment as the hype-machine entered overdrive. That was until the earnings and guidance. With so much hype, disappointment was inevitable. Pop!
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