It's a pretty intensive day again, so I came back home tired again. Though I had planned to follow Democratic Town Hall up through the end, I fell into sleep before Sanders' Q&A would end, so missed most of the parts of Clinton's. Waking up almost at the end of this Town Hall, I heard Clinton to deliver her speech as smoothly as usual. It's such a familiar process and environment for former First Lady, Secretary of State and NY Senator. Earlier, I caught Sanders' answers to several questions, one was how to fund his universal health insurance plan and college tuition plan and if these plans would be better off for paying higher taxes; Another was his view on religions he dodged. Sanders did bring new ideologies to the table, the key now is the solutions and implementations.
Gopro released the worst earning for Q4 you could ever imagine. I don't know how much worse its stock price performance could be in future. To me, it's really bottomed. According to its release I briefly glanced, part of the reasons of loss was driven by one time charge of products realignment. They are trying to simplify their product lines. They still have pretty strong cash positions and have generated pretty healthy operating cash flow. As I have shared that NHL and PGA Tour either renewed or established partnerships with GoPro, if they could expand customers' base within significant global sports organizations, their growth in action-camera sector will still be tremendous. As they indicated that they would do something at Super Bowl. In addition, their camera can be utilized more broadly into less intense sectors to expand its customer bases if they can formulate customized strategies. For example, it is very convenient to record driving experiences while traveling and very practical for beautiful memories of intimacy. Its inventory balance has been reduced due to holiday season shipments and write-off. This actually clears up a potential operational issue. I don't think they carry much debt but will take a deep look. They have bought back shares at an averaged price of 23 bucks and they may be able to do it at much lower prices later. However, their focus of using cash are in R&D and Marketing. I would expect their Hero 5 to be a decisive trigger of turnaround in 2nd half of the year. I found this clip on Youtube and this guy seems an expert of GoPro's products. If Hero 5 with dual camera will be priced at 800 to 1000, it will be a high margin business if GoPro can release this product with their magic. If they can extend it to Virtual Reality, they may achieve their goals in expanding the scope of businesses broadly. I bet there are a lot of opportunities to grow in Product Development, Marketing Strategies and Financial Management with limited risks for GoPro.
After reading their full financial for Q4 and the year of 2015 in terms of Income Statement, Balance Sheet and Statement of Cash Flow, I will write up my own 2016 projection. You can't rely on their current most conservative guidance after such a devastating quarter.
I will heavily accumulate its January 20th, 2017 call at 10 bucks in the next 3 months and expect it fully turned around by October, 2016. Its price will be pushed down to single digit today and short-sellers will keep pushing it to penny.
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