Why GoPro Kept Soaring: "Short Utilization Is Near 100%"

Tyler Durden's picture


With GoPro up over 100% since its IPO (which the mainstream media decides indicates massive demand for the 'future' infrastructure monetization of camera-on-a-stick clips), it appears there is another much clearer reason for the surge. As WSJ reports, the utilization level - the percentage of shares available to loan that are actually being borrowed - is near 100%. As Astec Anaytics notes, it's rare for a stock to have such a high utilization level as the cost of borrowing GoPro shares, a proxy for short-selling activity, has “immediately become one of the highest in our system."


“Although sharp and strong moves are common in the first days of securities lending activity of a newly listed company, and often unrelated to short selling activity, these numbers are dramatic even by those standards,” Mr. Loomes said.



It appears the squeeze has come and gone and today's 9% tumble may just be the start...

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Wed, 07/02/2014 - 11:36 | 4917855 newsguy68
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Round Up Of Retailers Closing Locations Or Going Bankrupt In 2014  http://wealthydebates.com/round-retailers-closing-locations-going-bankrupt-2014/
Wed, 07/02/2014 - 11:44 | 4917910 Manthong
Manthong's picture


Gee, I can take my old VHS Camcorder and duct tape it to the side of my head and outside of a slightly sore neck muscle, get pretty similar results.

Wed, 07/02/2014 - 12:13 | 4918007 power steering
power steering's picture

I see ZERO barriers to entry for competitors of this product

Wed, 07/02/2014 - 12:33 | 4918099 power steering
power steering's picture

Anybody voting me down is long this joke! Shit this product couldn't get picked up by Billy Mays and K-Tel @ two for the price of one with free accessories.

Wed, 07/02/2014 - 12:54 | 4918179 Protokletos
Protokletos's picture


Wed, 07/02/2014 - 13:03 | 4918223 Manthong
Manthong's picture

From above:

“Gee, I can take my old VHS Camcorder and duct tape it to the side of my head and outside of a slightly sore neck muscle, get pretty similar results”

But admittedly, I can’t do that when I am doing the wingsuit.. it’s a wind drag and center of gravity thing.

.. oh, and there is the water ski jumping thing, too. so they do have a market there.

http://www.youtube.com/watch?v=GFmvMHPQ1k8    < 3 min., but amazing

Wed, 07/02/2014 - 13:53 | 4918196 Squid Viscous
Squid Viscous's picture

think of the possibilites, Ho-Pro to record your disgusting conquests ..Bro-pro when you want to rob a 7/11 and record it for your homies, No -pro when you are a fucking loser and want to record your epic run down the intermediate ski trail...and Slo-pro to keep track of your mildly retarded spawn

Wed, 07/02/2014 - 12:37 | 4918118 PeeramidIdeologies
PeeramidIdeologies's picture

Really? This product has been on the shelves for years, and is dominating market share. In fact there is no other product even close to being able to replicate the results of a GOPRO in extreme conditions. I see zero competition, and zero reason to allow the squids to be involved.
Commence fleecing!

Wed, 07/02/2014 - 12:45 | 4918154 Thought Processor
Thought Processor's picture



IPO's are a profit vehicle for the bank or banks that handle the offering.


Bank(s) are payed / issued shares at pre-IPO pricing.   Bank then 'floats' shares on the market at the highest level possible, usually a minimum of 4X price of shares bank received pre-IPO.

Bank is the authorized to then support price and buys / sell shares at will.   Bank pushes price up in hope of attracting interest as insiders sell.   Bank then feeds in shorts of it's own to lock in profits, and to extract all risk from the IPO transaction.   


Hence the reason for the 'Pop" and the 'Drop.


It's a big fuckin club, and unless you have pre-ipo shares or have the capital to invest pre-IPO, you ain't in it.

Wed, 07/02/2014 - 13:11 | 4918261 PeeramidIdeologies
PeeramidIdeologies's picture

Such a sham, shame, losers game!

I never be "in the club" either. They know if they ever let me in I would dismantle that mo'fuka

Wed, 07/02/2014 - 14:54 | 4918739 Thought Processor
Thought Processor's picture



There's a reason it's called 'Churn and Burn'.

Wed, 07/02/2014 - 11:37 | 4917857 NoDebt
NoDebt's picture

Well, that escalated quickly.

Wed, 07/02/2014 - 12:30 | 4918079 power steering
power steering's picture

What the heck? Some mental pygmy gave Dr Dre $3 billion of shareholder cash, CASH, for a headphone maker!

Wed, 07/02/2014 - 12:38 | 4918124 Thought Processor
Thought Processor's picture



They bought Beats for the streaming music platform and brand.  Headphones were just the icing on the cake.


Cheap for apple.  Smart purchase in my opinion.  



Wed, 07/02/2014 - 13:22 | 4918314 power steering
power steering's picture

Streaming music platforms are a dime a dozen. headphone makers grow on trees and as for branding, name the energy drink Coke gave 50 cent $50 million for. I won't need to wait for an answer.

Wed, 07/02/2014 - 11:38 | 4917863 frankTHE COIN
frankTHE COIN's picture

I used GoPro when I Trained My Dragon.

Wed, 07/02/2014 - 11:40 | 4917874 NoDebt
NoDebt's picture

Hey- anyone know any pink sheet companies with ticker symbols that are similar to GoPro (GPRO)?

Wed, 07/02/2014 - 11:50 | 4917924 CPL
CPL's picture

All of them?  That's sort of why they are on the PNK sheets versus up and comers in OTC (although they don't get much better, most of it is junk in there)

Wed, 07/02/2014 - 12:02 | 4917966 Temporalist
Temporalist's picture

Try GROPR...they make apps for sexual deviants...and the NSA.

Wed, 07/02/2014 - 11:40 | 4917877 Smegley Wanxalot
Smegley Wanxalot's picture

GoBlo...YoDough on this fucking dog stock.

Wed, 07/02/2014 - 11:43 | 4917878 buzzsaw99
buzzsaw99's picture

most-hated outperform = bizarro market

Wed, 07/02/2014 - 11:41 | 4917879 rubiconsolutions
rubiconsolutions's picture

It's time to 'focus' on the fundamentals. 

Wed, 07/02/2014 - 11:44 | 4917904 JustObserving
JustObserving's picture

You have to have been blind for the last 5 years if you are shorting stocks in the US.  Never short a manipulated market unless you are financially suicidal.

Besides, Yellen believes its unpatriotic.  And Obama concurs.

Wed, 07/02/2014 - 12:24 | 4918053 bagehot99
bagehot99's picture

A monkey with a pencil can pick stocks in this market. 

Wed, 07/02/2014 - 11:46 | 4917916 oulous
oulous's picture

The post IPO surge had nothing to do with valuation, GPRO should currently be priced at best no more than 5% above its debut but the story is intact. It is a hardware company that produces a genre specific media which has a sizeable market. A lot of growth companies start with a strong product in a unique space and morph into something much bigger. Unless you are a master of shorting skepticism on emerging companies is only hurting your bottom line. GOOG - AAPL - YELP on and on also received the same skepticism. I heard so many people say wow 90 a share for a search engine? Study the story before the bottom line.

Wed, 07/02/2014 - 11:53 | 4917933 bagehot99
bagehot99's picture

It's a camera company.

Wed, 07/02/2014 - 12:44 | 4918142 TahoeBilly2012
TahoeBilly2012's picture

Every Christmas parents everywhere need to gadgets to buy their kids. This is that perfect "use it once, leave it in the drawer for 10 years" product. I assume they will do well for a Christmas or two and that will be it. 

Wed, 07/02/2014 - 11:58 | 4917954 Atomizer
Atomizer's picture

What country is manufacturing the hardware and software. That becomes the real long term investment decisions. 

The SEC is sleeping on the keyboard creating new 0101010 for Fed.

Wed, 07/02/2014 - 13:06 | 4918097 Squid Viscous
Squid Viscous's picture

what is their long term competitive advantage besides their brand name -  to justify 6 billion mkt cap... please enlighten us as to what they can "MORPH" into - lol... maybe a camera i can attach to my cock?

Wed, 07/02/2014 - 20:54 | 4919841 oulous
oulous's picture

A fine idea, you should make it yourself and IPO COCKAM. There is no doubt the market cap of any IPO is going to have a huge fed mark up attached but take that away and its not a bad company as far as IPO's go.

Wed, 07/02/2014 - 11:54 | 4917936 RealityCheque
RealityCheque's picture

Think about it:

This is all about possible future earnings. The NSA would love to have cameras on our heads, up our asses etc etc etc.

GoAmateurFuckwitCameraOrExtremeSportsEnthusiast (or "GoPro" - whatever), are going to be in line for some fat gubbermint contracts!! Name your price motherfuckers!

Wed, 07/02/2014 - 13:20 | 4918305 Haager
Haager's picture

The NSA wants Camera-on-a-stick to shove it up our asses? Of course they do.

Wed, 07/02/2014 - 11:56 | 4917946 youngman
youngman's picture

Pump and dump...its how you make money..its not how you make an economy though...you have to make things to have an economy...manufacturing is how you have an economy...

Wed, 07/02/2014 - 11:58 | 4917950 Frank N. Beans
Frank N. Beans's picture

$5.5 billion market cap, $6 million in earnings, what's not to like?

Wed, 07/02/2014 - 12:06 | 4917981 Atomizer
Atomizer's picture

We can photo stick you jacking off your frank and beans.  Then upload it on YouTube for everyone to mock you. Phase II, your jackoff session is linked to fagbook and twitter. 

What's not to like?

Wed, 07/02/2014 - 12:29 | 4918080 Squid Viscous
Squid Viscous's picture

don't forget Linkedin, so he will never work in any civilized country again...

Wed, 07/02/2014 - 14:06 | 4918503 Frank N. Beans
Frank N. Beans's picture

like yours?

Wed, 07/02/2014 - 13:43 | 4918422 robertocarlos
robertocarlos's picture

They told me the cloud was only for back-up purposes.

Wed, 07/02/2014 - 15:14 | 4918813 Stupid Donkey
Stupid Donkey's picture

With earnings growth of 100% per year, in 6 years this stock will have a P/E approaching 20. We should all be selling our first born children for such a deal.

Wed, 07/02/2014 - 12:10 | 4917993 GFORCE
GFORCE's picture

Like a GoPro cam on the nose of a rollercoaster.

Wed, 07/02/2014 - 13:54 | 4917996 Cthonic
Cthonic's picture

The biggest story in this to me is how does Astec get real time short securities data?

edit: Quadriserve AQS Market Data Services

Wed, 07/02/2014 - 12:14 | 4918018 SloMoe
SloMoe's picture

I use GoPro to document the progress in my 3D printing social media company---that I'm going to take public soon. Seeking first-round investors now. Get 'em while they're hot...

Wed, 07/02/2014 - 12:23 | 4918047 Atomizer
Atomizer's picture

What 3D technology do you plan on using? 

Wed, 07/02/2014 - 12:26 | 4918066 Squid Viscous
Squid Viscous's picture

can it print guns?

Wed, 07/02/2014 - 14:41 | 4918362 SloMoe
SloMoe's picture

Can't print guns, but once I have enough "seed" money to build a prototype, I plan to use it to print a small island in a Caribbean tax haven.

Hurry, hurry! I don't want you to miss this Once-in-a-Lifetime-Opportunity!

Where should I send the NDA?

Wed, 07/02/2014 - 12:42 | 4918139 Oh regional Indian
Oh regional Indian's picture

Haaahaaah....for a moment there I thought you were being serious! :-)

Wed, 07/02/2014 - 12:25 | 4918048 Squid Viscous
Squid Viscous's picture

let me take a wild guess - Goldman made a shit load on both sides of the trade, fucking you for a borrow, while being massively long until "someone" pulled the rug out...lol

Wed, 07/02/2014 - 12:55 | 4918194 pragmatic hobo
pragmatic hobo's picture

hell ... if a company like king-media is valued at over $7 billion then shirley a company like go-pro is worth $6 billion ...

Wed, 07/02/2014 - 12:55 | 4918198 walküre
walküre's picture

Just who was stupid enough to go 100% short on this piece of shit so massively when it is 1000% obvious this is classic pump and dump garbage?

Names, please. I have a bridge to sell!

Wed, 07/02/2014 - 13:40 | 4918409 robertocarlos
robertocarlos's picture

Shorts hoisted on their own petard. Love it.

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