In the video below, Motley Fool analyst Blake Bos highlights the geographic risks that follow an investment in Soda Stream (NASDAQ: SODA ) -- specifically, the company's Israel location and its manufacturing plants in the volatile West Bank.
A controversial video from the company called "Breaking Barriers" has been released, which highlights the company's positive work environment meant to bring together Palestinians and Israelis alike. At this time, a lack of credible news regarding this video has clouded the truth behind the company's statements. Blake determines the video is of little significance as the employees at this facility are content with current working conditions.
Blake warns investors of the risk related to a major conflict eruption in the region. Although unlikely, he believes shares will be weighed down slightly by this risk for the foreseeable future. Investors should refrain from investing large parts of their portfolios in companies that have large country-specific risks, and should always take these risks into account before starting a position. Blake has allocated only 5% of his portfolio in the company to protect against any confict.
As Blake mentions in the video, Soda Stream's country specific risks may affect the company's bright future greatly. The Motley Fool's premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a year's worth of updates, so just click here to get started.
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