blog gpro weekly 1-31-2016

From a high of 98.47 in October of 2014 to a low last week of 9.90. You would think this downward slide would be over by now.

But wait. Although GPRO has a growth rate in the 35 to 70 percent area on a quarterly basis. They have not been able to convert that into a reasonable return on their sales.

Last quarter they had 431 million in sales and a 25 cent in earnings. This year earnings are projected to be 84 cents with 2016 coming in at 65 cents???? Growth in sales doesn’t seem to help them any.

With those numbers I’m a buyer in the 4 to 6 dollar area although GPRO could bounce right here after trading sideways for a week unable to set a new low.

With shorts holding 44 % of the stock a little pop up could cause a short covering rally that run this up to 20 bucks.

Resistance areas are 14.25 and 20 bucks.

Dave C.

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