Category Archives: GPRO

On October 8, 2014, when GoPro (GPRO) was trading at $89.93, we said the stock had a conservative downside target of $68.93 and an extreme downside target of $31.28.  On December 23, 2014, after falling to the mid-range target of $45.50, we thought that the rout in the stock was over, for the most part.  Although we thought that there was resistance at the $60 level, we figured an investment from the December 23rd level was acceptable with only a portion of the intended investable funds.  We suggested “…putting only ¾ of the intended amount into GPRO with the remaining ¼ for the ‘unlikely’ event of falling to $31.28.”

Unfortunately, GPRO was never able to sustain the initial $60 level and fell as low as $37 before making a discernable rebound.  It was from this level ($37), that GPRO did make a surge to $65.  However, the $65 level was not to last as GPRO declined to the extreme downside target that was indicated as early as October 2014.

Now that GPRO has declined to the extreme downside target, a cursory review of Value Line Investment Survey is in order.  Based on the October 2015 Value Line, GPRO is short on meaningful data.  However, the analyst for Value Line has the following thoughts:

• Sales are surging
• costs and expenses are declining
• Bottom line figures are now in the positive
• 2015 earnings have been increased

The analyst for Value Line has the closing remark that “…the recent price correction may afford risk-tolerant accounts an attractive entry point…”  At the current price, we can’t argue about attractiveness but the future risks are the only concern.

On October 8, 2014, when GoPro (GPRO) was trading at $89.93 we concluded our review of downside targets for the stock with the following commentary:

“This review of GPRO is to determine how accurate the downside targets are.  In addition to the current downside targets, the upside target is indicated to be $103.40.  The parabolic nature of the current rise may not be over.  However, depending on the length of time that passes, investors/speculators interested in GPRO would do well to wait for the stock to fall below the ascending $45.50 before reconsidering the merits of this stock.”

Below is the same chart that was used from October 8th with data to the present.

GoPro has achieved our downside target and appears to be on the rebound assuming it can exceed the $60 level.  Speculators should keep an eye on the $31.28 level as it is a legit downside target if the $60 level fails to hold.  This means putting only ¾ of the intended amount into GPRO with the remaining ¼ for the “unlikely” event of falling to $31.28.