A fizzing stock for speculators, traders – and investors

It’s not often that investors, traders and speculators can all focus on the same stock, but Israeli beverage company SodaStream International (SODA, quote) offers many different opportunities to profit.

Image courtesy Smannel: http://commons.wikimedia.org/wiki/File:Fizz-kitchen.jpg

There are many different ways for investors to enjoy Sodastream

According to Benjamin Graham’s The Intelligent Investor, speculators seek to profit from the conditions of the market, while investors try to gain from the conditions of the company. 

Traders take a different approach, playing a pure numbers game and profiting from changes in prices over time. Each of these three strategies has its strengths, and each strategy can be applied to SodaStream, maker of home carbonation systems for consumers to make their own sodas.

For speculators and traders SodaStream equals profits, having beaten estimates for six straight quarters. The stock surged on its May 9 earnings report and is up 15.89% over the last week. 

Traders and speculators could also have done quite nicely by shorting SodaStream after it soared. Since its peak over the last week, the share price has fallen more than 5%. Technical analysis reveals post-earnings candlestick patterns that are very bearish.

Investors can benefit from accumulating a position in SodaStream as the stock fluctuates. The 52-week price range for SodaStream is $27.60 to $79.92. The high short float of 56.51% shows there are strong feelings from both the bulls and bears about the long term prospects of the company, giving investors plenty of opportunities to buy on the dips.