6/27/24 - $gpro - 2 cheap 2 ignore at $1.3/shr

27 juin

6/27/24 :: VROCKSTAR :: GPRO
2 cheap 2 ignore at 11.3/SHR

wtf is V writing about gpro. lol. yuh fam i look at it all.

This thing is basically worth the equivalent of it's annual R&D budget which is pretty large at $170 mm (and the all in company is worth $200 ish).

- google trends still look like suck for the hardware biz BUT they're not really getting substantially worse. 2nd deriv stuff, but we're not red anymore k.

- services growing in the mix and helping gross mgn, to be sure

- so wtf is that R&D worth, bc if it's actually legit and not purely bloated, the IP they've built in the last years is an Ez take out by someone like AMZN, among many others.

- and if RDDT is selling ur data to openAI to train their models (lol pleb crusher move) and ADBE is attempting the same... surely the video footage is super helpful to a mega-corp-pseudo-state-co like MSFT, AMZN, googl... u know em.

- so basically i think this thing has some floor value probably below $1.5 and we're at $1.3 today. does it go to $1? idk. if enough time passes everything goes to zero. enen u and me.

- so it's one of those pretty cheap call options that doesn't expire. the biggest cash burn happend last Q (seasonally) so they have enough to not dunk/ raise on our butts. so that's key for something that has a loser chart.

i took a peanut 25 bps position as a cheap call option. if in this tape the beaten up stuff gonna get a bid into 4th of july and opex tmr, i like playing stuff like this. if u r buying irbt... you're better off buying GPRO IMVHO. lower downside, more upside, optionality.

risky. but wanted to flag.

it's too cheap to ignore.

V

9 juil.

Trade fermée manuellement

rotated this position into OLO as of today.
the $1.3->$1.5 is good enough for me. i think there are some gains left but want to be clear this was a trade, some work some don't. i tend to take profits on these lower conviction plays. i'd re-enter again if we dump into the $1.3's.
V