The Soda Wars Get Bubbly

John Ransom | February 07, 2014 12:02 PM

Welcome to John Ransom’s Stocks in the News for February 6th, 2014- where the headlines meet the trendlines:

Stock number one: Green Mountain Coffee Roasters, Inc.

Green Mountain Vs. SodaStream Next Coke Vs. Pepsi?- IBD.com

David Williams with PageTrader.com and Williams-Edge talk to John about the day’s market trends for February 6th 2014.

SodaStream (SODA) rebounded Thursday on speculation PepsiCo (PEP) could reach a deal with the in-home soft drink maker after Green Mountain Coffee Roasters (GMCR) stunned the industry late Wednesday by announcing a deal with Coca-Cola (KO) to develop a cold beverage machine. Deutsche Bank's Bill Schmitz believes there is a "small possibility" PepsiCo will form a similar partnership with SodaStream. He kept his hold rating and $53 price target on the stock.

Symbol: GMCR

Trailing PE 33; Forward PE: 24

PEG: 1.17

Dividend: 1.20%

Estimate Trend: UP

Ransom Note Trendline: Buy Green Mountain Coffee

GMCR data by YCharts

Stock number two: Akamai Technologies, Inc.

Akamai Reports Strong Q4 Earnings- Zacks

Akamai Technologies, Inc. (AKAM) reported fourth-quarter 2013 earnings of 55 cents per share, which increased 10.0% on both year-over-year and quarter-over-quarter basis. Earnings were above the higher-end of management’s guided range of 49 cents to 53 cents per share. Shares jumped 17.8% ($8.46) in after-hours trading, as Akamai provided a better-than-expected outlook for the first quarter of 2014. According to Bloomberg, the company also put to rest investors’ fears regarding Apple’s (AAPL) plan of building its own content delivery network.

Spirit Aerosystems (SPR_) fell 18.3% to $27.02 Thursday after reporting a loss in its fourth-quarter earnings report. For its fourth quarter, Spirit posted a net loss of $587 million, or $4.15 a share, compared to a profit of $61 million, or 43 cents a share, in the year-ago quarter. Revenue rose 5% in the quarter to $1.49 billion. The loss in the quarter is partly due to a $546 million charge related to its Boeing (BA_) 787 program. Spirit produces the fuselage for the Boeing 787 Dreamliner.

Symbol: SPR

Trailing PE: 142; Forward PE: 10

PEG: 0.51

Dividend: NA

Estimate Trend: Has been UP

Ransom Note Trendline: Avoid Spirit AeroSystems Holdings