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No. of Recommendations: 2
Here's a new purchase that intrigues me: SodaStream (SODA).

First, SODA has a high percentage of 4- and 5-star reviews on Amazon (AMZN), which you always like to see.

Second, SODA has room to run, based on the potential savings soda consumers pocket by switching to home-carbonation.

Here's my thinking:

World-wide, Coca-Cola (KO) serves 1.7 billion units per day (2011 annual report), or 620 billion servings a year (1.7 times 365).

Also, KO has 43% of the U.S. market ( For our purposes, we'll assume this is also KO's global market share. So, about 1.443 trillion cola servings are consumed worldwide every year (620 billion/0.43).

Let's also assume that the consumer's per-unit cost is $0.54. To get this number, I divide the $12.99 price for a case of Diet Coke at Office Depot) by 24 (

Meanwhile, SODA claims the per-unit cost for a home-carbonated beverage is $0.25.

Thus, home carbonation savings is $0.29 per-unit ($0.54 minus $0.25).

With 1.443 trillion cola servings consumed worldwide a year, the world's consumers of fizzy drinks save $420 billion a year switching to SODA's and other do-it-yourself methods. (1.443 trillion x $0.29).

Last, let's estimate the cost savings-market value ratio. Divide that $420 billion of annual cost savings by SODA's $1 billion market value and you get 420x, meaning the annual costs savings is 420 times SODA's market value. By this measure, SODA appears to have a long runway of growth.

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