10 June 13 19:11–The Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) shareholders’ meeting that would not allow Eyal Waldman to continue as chairman captured the headlines last week, but in the stock itself there was little significant movement. The company among the Israeli stocks that I hold here that did make big waves on Wall Street was SodaStream International Ltd. (Nasdaq: SODA). Its share price shot up by 14% last week, on a huge volume, of 13 million shares, 60% of the company, which turned into a short-player’s nightmare.
“Set the bubbles free” says SodaStream’s successful slogan, and they certainly broke free and went wild last week. The first to release the bubbles was Barclays analyst David Kaplan, who decided last Monday to boost his target price from $55 to a nice round $100. I don’t recall such a dramatic one-day rise in a target price for a stock 80% – that did not come after the release of financials or some important announcement.
The second liberator of the bubbles came on Thursday, when a rumor was reported in Israel about Goldman Sachs holding talks on a sale of SodaStream to PepsiCo (PEP) at close to $100 per share. Even before trading opened on Wall Street, PepsiCo chairperson and CEO Indra Nooyi rushed to put the bubbles back in the bottle, when she strayed from the customary “no comment” beloved of CEOs asked about mergers and acquisitions, and issued a categorical denial…Read More>>