GoPro Inc, (NASDAQ: GPRO)
Announcements out of GPRO seem to come regularly on Yahoo finance. Yesterday, market giant Google Inc. (Nasdaq:GOOG) announced they are researching a virtual reality angle with them. They are collaborating on a 16 camera action setup utilizing google software genius.
GoPro’s New Drone
My favorite camera of the collection, the wicked cool SoloShot, GPRO announced is being introduced in the near term. Yesterday, the company also revealed they are entering into the drone business. The AirDog is on its way. CEO Nick Woodman states they have been dabbling, but it is time to officially get invovled in the drone segment, a quadcopter will be ready to ship by Q2 2016. GoPro’s feeling is that this is a natural extension to be aligned in its product offerings, and could add over $1 billion in revenues. Assuming GoPro has 25% of this space with 30% margins the company could add another $475 million to the bottom line in the upcoming year. If the forwrad P/E stays where its at, this could add $15-18 to the stock price on top of its current level of roughly $55.
GPRO Chart
GPRO has posted constant news over the past 90 days and the charting history makes it a great candidate for a calculated trade. The Daily Chart simply diplays a beautiful trend to the upside recently, including yesterdays 7% pop through a line of resistance at $55.00, which now hopefully holds as new support for the next move higher.
All is well? One would think so, but year to date if your swinging it, it is still in the red. On the other hand, another opportunity arised if you patiently waited for its parabolic move in early Q4 of 2014 to the high of over $98 then a pullback and a crack downwards, what I like to call the ‘falling flag’ pattern at $41.50. That large range of a move then followed by a strong double bottom bounce at the $37.50 level, allowed for the ability to capture some decent gains with the short term pops and drops.
Let’s hope this stock doesn’t require weekly news to keep it moving to the upside and enjoy the volatility GPRO is known for!
…As always, stay disciplined and trade your plan!
Company Profile
GoPro, Inc. develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content. The company offers HERO line of capture devices, such as cameras; premium accessories, including battery BacPac, smart remote, and LCD touch BacPac accessories; and mounts comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and grip and tripod mounts that enable consumers to capture content while engaged in a range of activities, as well as mounts that enable customers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps. – Yahoo Finance!
