GOPRO End of correction. The technical analysis shows that in the longer term, NASDAQ:GPRO is moving into a wider channel. The top and the bottom of it are ATR axes. It can also be seen that in a symmetrical wave structure, it went out of the lower channel (yellow wave cycle) but after a few days it rose back up towards the bottom of the channel axis. This is currently being back tested. It is expected that in the coming days the back testing will be completed and a strong rising wave sequence may develop with a primary target price of the upper ATR axis of the channel. This level is 16.85 usd
Why is it that even after posting very solid Q3 numbers beating estimates and a strong outlook that GPRO soared then parabolically fell? Is it hedge funds and shorting capping the price? 75 % of the outstanding shares are institutionally held. - Bob
meszaros
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@rchmail703, I agree with you. In the last few years, Gopro, and in particular Nick Woodman's comments, have done a lot of damage to equity investors. Their drone development has also been a failure. But let's be optimistic. They have made a lot of efforts in recent years to regain credibility. In my opinion, it is a completely different company today than it was 3-4 years ago. Probably more and more people are realising that. There is a saying on Wall Street that if the share price of a technology company falls close to $1, it will go bankrupt. Gopro avoided that. In fact, it made a successful comeback. So I expect a much higher share price in the longer term.
rchmail703
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@meszaros, Thank you for your reply. Yrs the turnaround by any measure has been remarkable, and wise to lean more toward subscription based. I am relatively heavily invested at 17,500 shares and I believe strongly that the company is now in solid footing. I just can't understand (which was the juxtaposition of my original question) why just after such great Q3 numbers in would fall almost as sharply unless it is short sellers capping it. Best wishes.
sonahamkoma
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@rchmail703, maybe its because the Russel 2000 is backtesting its breakout from the 1y consolidation. GoPro with its roughly 1.7 billion market cap is a small cap. In my opinion will GoPro continue its uptrend as soon as the Russel 2000 will bounce back of its breakout level, small- and midcaps often correlate with the Russel 2000 they move actually very tightly together. So in my opinion it depends on the Russel 2000, if we bounce back from the breakout level most of the companies with less than about 5 Billion marketcap will rise, if the support gets broken we even could see the S&P 500 correcting. We will be smarter tomorrow because today we already dippt below the support in the Russel 2000 but it got defended by the bulls so we‘re still in. But guys please remember that we have Thanksgiving on Thursday which means the wallstreet will be closed the whole day and on Friday they are already closing at 01:00 PM.
rchmail703
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@sonahamkoma: You kind if list me there with all that terminology, I'm not knowledgeable about these analytics. So bottom line then, in spite of 75% of the outstanding shares being g held by large institutions like Vanguard, do you see the Go Pro share price going up likely by say late spring 2022? At only $10.61 it us below its true value many experts are saying. I read what Meszaros wrote and that was helpful too. Thank you for your insights.
@sonahamkoma, seekingalpha.com/news/3773869-these-consumer-sector-stocks-look-like-short-squeeze-candidates In recent weeks, articles like this one have been appearing more and more. Gopro shares are expected to make similar "MEM" moves as AMC or GME. I'd be surprised if it happened. After all, fair values are not high here. GPRO is trading exactly at its fair value. There are many stocks that have incredibly high fair values (RHE, DVN, GORO, ARBE, NOG.......stb.) I could imagine a strong momentum rise from these. I expect a regular wave rise in GOPRO shares.
rchmail703
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@meszaros: Don't know if you have re analyzed or adjusted your assessment but by any measures GoPro is actually undervalued at it's current share price. The proper valuation is approximately $ 16.85 and increasing.
- Bob