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Cramer Does It Again: Camera-On-A-Stick Plunges Below IPO Price
Having soared to almost $100 - because it was a social media company - Camera-on-a-stick maker GoPro has collapsed 75% from its highs and broken back below its $24 IPO Price for the first time.. which is odd as in July, CNBC's Jim Cramer said "Go Pro is heading higher... I know growth oriented money managers who would gladly pay as much as 60 times earnings for a company with these numbers. I think GoPro's a bargain at these levels."
First up was GoPro, the maker of popular, high-quality action cameras that trades at 31 times next year's earnings estimates. That can seem absurdly expensive, given that the average stock on the S&P 500 sells for about 18 times earnings.
The bear case for GoPro is that many view it as a hardware retailer with a product that can eventually be replicated by the competition, which will ultimately dent its reputation.
The bull case for GoPro is more complicated, as many believe that GoPro has a lot more time before a competitor will be able to design such a good camera. Additionally, GoPro is building out a media ecosystem that allows millions of people to generate content and share it. That's a dream come true for a market that already loves Facebook and Google.
When Cramer looked at the numbers, he knew immediately why GoPro's valuation was justified. It grew revenues by 71 percent year-over-year, and its earnings more than tripled year-over-year. It released strong guidance for the year as well, as many of its snazzy new products will be in stores for the holidays.
"I know growth oriented money managers who would gladly pay as much as 60 times earnings for a company with these numbers. I think GoPro's a bargain at these levels," Cramer said.
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Nearly as bad as a PM miner.
This is more of a symptom of all the funny money flooding the markets than anything else.
I have a GoPro. It is an awesome little device. Takes great videos, is rugged, works underwater, and let's you see things you wouldn't normally be able to, such as aquatic life in and around a crab trap.
Great for slow mo analyzing things too. From baseball pitching form, to tkd techniques. Anything you can think of.
The corrupt money stock is tainting everything and anything it touches.
It's a shame.
pods
Cramer's an asshole.
In other astounding revelations, the sky is blue except where there are clouds which may be white or gray, if the gray ones produce rain you may get wet. It also gets dark at night.
I use a GoPro on my motorcycle. Love it. Hope this equals lower prices on the stick cameras.
Dude! It's like totally waterproof! And it's like so gnarly to shoot my rad skateboarding tricks! Buy! Buy! Buy!
I'll stick with big boy toys.
Thanks for playing.
Good move for traffic altercation settlements. Bad move if you post selfies of your holligan antics.
Anyone who has googled russki traffic accidents know why in car cameras are a good idea. Expect the gubmint to mandate them in all new cars soon.
Agreed the inflated valuation is the problem. At a down-to-earth P/E, GoPro might be a respectable stock to hold. My only question would be how good are the GoPro management, design, engineering, and manufacturing sourcing teams compared to the competition? Because they need to be best-in-class to make it in such a highly competitive space.
GoPro currently is a category leader based on brand awareness, product quality, and value for money. Even a producer of a camera on a stick can warrant a respectable P/E if it actually has a unique competency at making cameras on sticks (and there is market for cameras on sticks, which oddly enough there seems to be). That company just has to be darn good at staying on the front end of the curve on quality, features, and value.
I don't know if GoPro qualifies in this regard or not, but Wall Street abuse of its stock shouldn't necessarily disqualify it. There actually are some well-run companies out there that sustainably earn profits the old fashioned way.
" And.....its gone " @ > @
Cramer is at his best when not sniffing cocaine. In other words, never.
People expecting great Christmas sales?
Maybe Carl Icahn can have dinner with the CEO
Xiaomi launches $64 action camera that can out-shoot the GoPro Herohttp://www.theverge.com/2015/3/2/8131787/xiaomi-yi-action-camera
Amazing the Chicoms came up with another device of their own design that eerily resembles a brand leader.
Funny how that happens, especially from our "allies."
pods
I have one of these, and a Mobius. Both take video as well as a GoPro.
The Xiaomi doesn't have image stabilization. Deal breaker.
I have one of these, and a Mobius. Both take video as well as a GoPro.
GoPro, the new Crox.
they just need a camera watch....I heard that is the next thing
Just more smartphone hysteria. Stupid
The people I see using them always look exactly like the people interviewed on TV that say: the "car, truck, bus, train etc. just came out of nowhere and killed my friends, sisiter, brother, mom, uncle etc."
Camera on a stick?
Pass.
Treasonous politician on a stick?
Fraudulent banker on a stick?
Thieving looter on a stick?
Now, that idea's time may have finally come...again.
Looks more like Obama. Holder. And Lebron James on a stick.
Cramer on a stick?
CNBC on a stick?
If it were me I would start from the other end.
A scene from Apacalypse Now.
Deflation sucks
20-30 years ago they would of scraped some money together and put a device out for a decent price and made a nice living, but in the VC driven, Silly-con Valley era that isn't the cool, hip thing to do.......
I just wrote the same thing!
This is more of a symptom of our rent seeking conjured up money society than a hit on the company.
pods
Stick that GoPro up Cramer's arse.
Best way to do an interview with him cos his heads right up there.
< Fuck Christmas
< Ill be spending more on Christmas
This Christmas coming up, 2015, the wonderful season, will euthanize a number of retailers that are done but don't know when to quit.
It is going to be a shit show.
And they know some of them are not going to make it without damage. The Christmas decorations and theme is already out there in some of the store I walked through.
give a couple gifts and have some food and drinks with friends and family...just like normal
Oh, I'll be spending more this Christmas, you bet... on healthcare.
Hopefully his Charitable Trust Fund is loaded up on it.
So many stocks that look like pets.com now.
Including the sock puppets.......
they could ipo shit on a stick in this market
We already have an IPO that produces shit in 140 characters or less. It's escaped gravity!
"I know growth oriented money managers who would gladly pay as much as 60 times earnings for a company with these numbers. ""
Correction, Cramer. You know growth-oriented money managers who will see that "camera-on-a-stick" has no barriers to entry and who will open their own "camera-on-a-stick" companies until the sector is valued at 10x forward earnings.
Just another one of his coke-fueled, spittle-flecked rants.
I have a dream today.
I have a dream that one day a company's valuation will be judge upon by the merits of its financial statements and not by hype or algorithm.
I have a dream that one day Wall Street will be overrun by the financial-slaves and their masters put in prison.
I have a dream that one day even Washington DC., a city devoid of morals and ethics, will be transformed into an oasis of freedom and justice
I have a dream that my children will one day live in a nation where they will not be judged by the amount of debt the have accrued in the form of a credit score, but rather by their merits and contributions.
I have a dream today.
camera on a stick has been around forever. It's called a colonoscopy--which is what the investors in this turd are going to be getting.
all cramer wants is ratings, bad or good mrkt calls don't matter. cnbc pays this guy to dance around like a clown with bells and whistle. don't patronize, don't critisize. maybe he'll go away..
OK here's what they need: Camera on a Stick with BACON. Because everyone loves bacon. That idea should be good for a half-billion in investment capital...
MMMmmmmmm...... BACON
KKKramer hates everyone not invested in the fraud markets!
A monkey picks stocks better than Cramer.
Oops!...
No oops about it. It's just taking his early August shorts a little longer than normal to kick in.
jmo.
Cramer?? Who gives a flying fuck what that asshole says! Why do we keep hearing about him? For laughs?
Cramer reminds me of a used car salesman.
Gulag his ass
Extreme value here. GoPro revolutionized the camera - HA
Oh yeah, and what a revolution it is. A dozen other companies have only been making digital cameras for, what 15 years now? They are cutting edge. Heh.
<sarc> Re "GoPro is building out a media ecosystem that allows millions of people to generate content and share it" Gee wiz, what innovation. No one has ever done that before. </sarc>