GoPro Rally

GoPro went public a few months ago (june, 2014) and is up +154,3% only in three months. Up +10,8% yesterday. IPO price per share in june was $23, then the shares skyrocketed quickly to $70 per share. There has been some overenthusiastic investor activity and this stock might not look attractive to a fundamental investor.

GoPro Hero4

(Picture: GoPro Hero4)

I think that this is a sexy stock to have in a portfolio. It all began as an idea to help athletes self-document themselves engaged in their sport, and has become a widely adopted solution for people to self-document themselves engaged in their interests.

They transform the way consumers capture, manage, share and enjoy meaningful life experiences. it`s done by enabling people to self-capture engaging, immersive photo and video content of themselves participating in their favorite activities. Customers are some of the world`s most active and passionate people.

Not only athletes use GoPro cameras, as their products have fast become mainstream, and GoPro has enabled the world to capture and share its passions. In doing so the world in turn, is helping GoPro become one of the most exciting and aspirational companies of our time.

We saw a GoPro and Ambarella rally because three new cameras is launched. It`s new flagship «Hero4 Black camera» is the first model in GoPro`s lineup to support 4K video recording. It does so at up to 30fps.

It`s faster Wi-Fi, better low-light performance, an improved UI, and the ability to take 12MP photos at 30fps.

Hero4 Silver is the first model to sport a touchscreen that allows users to see their footage. They are also launching Hero that can record 1080p video at 30 fps. Hero could reel in first-time action camera buyers at a time when penetration rates are still relatively low. GoPro`s free video-editing software has been revamped.

The video processor supplier Ambarella rallied too. GoPro shares set a new high last week. GoPro`s guidance range of Q3 sales forecast is raised to the high end. Their growth prospects seems to be very good. The stock is in the middle range. Not cheap, nor is it expensive, with a multiple of 50 with a growth rate at 34%. I think many will jump in and buy on any dip, because the stock price is a bit crazy as the investors are focusing on the top-line growth. The revenue growth has been extremely impressive for GoPro so far, and they have a strong business model.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Gold is at a critical level

The dollar hit a four-year peak compared to major currencies today, and while the dollar is moving higher, the gold is declining. The dollar is moving higher as everyone have all their eyes on the expectations of interest rate in the U.S right now.

Gold

Strong economic data could prompt the U.S central bank to raise interest rates faster and sooner than expected, and that could boost the dollar. The pressure on gold from a stronger dollar was mitigated by a fall in equity markets after Honk Kong riot police advanced on pro-democracy protesters in the worst unrest since China took over the former British colony two decades ago. Gold is traditionally seen as an alternative investment during times of political instability.

Gold is still in a bearish territory. At the end of last year, the precious metal started to move higher. We saw higher highs and people were bullish. It was a positive sign, but it was a positive sign in a negative trend.

The precious metal is still declining and it is just a matter of time before we see a test of the critical support at $1,185. Gold moved higher when the U.S forces began bombing raids in Syria, but gold is down together with Silver, which is below $18 right now.

We can see the same trend in Platinum, which moved sharply lower, down almost $40, and palladium down almost $30, so Gold continues to get more expensive relative to its precious cousins.

A portfolio should contain about 10% of precious metals, because as we have seen over the past decades, gold can cushion an investment portfolio during times of crises. Right now we are at a very interesting and perhaps critical juncture with respect to the direction of the gold price as it approaches a key support level.

It can move up and it can move down, and I`m following some key support and resistance levels for the precious metals. The gold price can move down to $1000 and below. It all depends on happenings around the world.

The signals out there is mixed which makes the bulls and bears very frustrated. That`s why it is important to trade what you see, not what you think. I`m exited about the coming weeks and moths.

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Ello is Anti-Facebook

There has been a lot of buzz about the anti-Facebook stance from the new start-up Ello. The new site does not accept advertising and have no data mining. At the moment, you can`t participate, unless you have an invitation to join the community.

Ello

(Picture: Ello logo)

Those Ello people do not like Facebook`s business model. They obviously don`t like to be a part of facebook as they feel they are the product, while the network is owned by advertisers. And this is exactly how they do it on Facebook.

They track every post you share with your friends, every friend you make on Facebook and the links you follow. All this is recorded while advertisers can buy the data and show you more ads. Ello obviously don`t like this, and belive they have a better business model.

The founder Paul Budnitz, which is also the founder of the cool bikes called Budnitz Bicycles, launched the site Ello earlier this year and say he has seen thousands of sign-ups an hour to Ello the last week, and it seems like this site is now taking off.

Ello is made by designers and they have a manifesto, which is;

Your social network is owned by advertisers.

Every post you share, every friend you make, and every link you follow is tracked, recorded, and converted into data. Advertisers buy your data so they can show you more ads. You are the product that’s bought and sold.

We believe there is a better way. We believe in audacity. We believe in beauty, simplicity, and transparency. We believe that the people who make things and the people who use them should be in partnership.

We believe a social network can be a tool for empowerment. Not a tool to deceive, coerce, and manipulate — but a place to connect, create, and celebrate life.

You are not a product.

How will Ello survive without advertising? Are people willing to pay for a subscription? It can be a site for artists and musicians as they have the problem with Facebook`s policy to use their pseudonyms as part of their profession.

But I don`t think that billions of people will run from site to site as a new one is launched. Ello will probably end up as a niche community for musicians and drag artists, among others, who want to use pseudonyms to protect themselves. Your friends on Facebook will still be on Facebook I think.

It`s ads and banners everywhere and the ads on Facebook and their data commercialization is not an issue people out there care enough about, so shareholders should stay calm and relax. People will stay and continue to be active on Facebook.

Ello is a mix between Facebook and Tumblr and I think it will be heavy to compete with Facebook right now. There are a lot of social networks out there and I feel that Ello is just another Google+, and If they didn`t make it, why should Ello? And do we need them all? In my eyes yes, but only if they have a product.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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What`s next in the stock market?

Take a look at the Silver. Now trading at $17,50! Down another 1,17% only today! Gold is also in a red territory, trading at $1,210,80. Down -0,71% so far today. Copper is trading at $303,95, while Crude Oil (Brent) is trading at 97,20.

This is not what many investors expected. Many was bullish on gold and are still buying with both hands, but the precious metals is declining every day. Yesterday, we saw good economic data. Housing prices are up in the best market in 22 years. What will happen next in the market. Please be sceptical about everything I say, but as an investor I need to predict the market.

SPX Sept 14

Here are some thoughts: The U.S economy can continue to grow with inflation subdued and the interest rates will probably increase next year, but in a gradual pace. Stocks will probably be supported by higher earnings instead of higher valuations. If so, the S&P 500 will continue to go up to about 2,250 next year.

But what if the stock market goes up like I mentioned above and the valuations melt up in the prices of the stocks when the growth remain the same, and at the same time, the dollar keeps going up and remain strong? Then a lot of capital will flow into the U.S market again. Fed will slow down its pace of monetary normalization, and companies support higher stock prices with more share buybacks.

Maybe this is the end? This is the top, and it stops right here. It is the end of the bull market. It is a slowdown in Japan and in Europe and China has a housing bubble that will burst, and all this will stop the whole global economy.

It`s many outcomes, and that`s why it is important to trade what you see, not what you belive. Expect the unexpected, because you`ll never know what`s gonna happen out there, but when it happens, it happens fast.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Why not print more money?

Let`s print more money and solve the debt problem. That sounds great, but unfortunately, it isn`t so easy as that. We will not be wealthier if we print more money. That is difficult to understand, and why is it like that?

money2

If we print more money, prices will increase and that`s what we call inflation. Let`s suppose the United States printed a lot of money and gave it to everyone in the country. People would pay debt or save the money, but most of them will be spent on different things.

Today, I belive most of them would run to the shops and buy iPhone 6 or the latest version of Xbox. But this would be a problem for both Apple and Microsoft, because the demand will increase. They will simply not have enough products to sell to the market, which means the prices will go up, which means a massive inflation, and our money is devalued.

If Apple and Microsoft increase the production to meet the demand in the market, it will be a problem for the factories too, because their capacity is limited. If the demand increase, the production will also increase, so the prices goes up at the retailer, Apple and factory.

The cost per-unit will rise because of the rise in labor cost at the factory. A rise in cost at the factory rises the price of the product in the shop. All this because of an increase in the demand for the product.

Wages are prices. An hourly wage is the price a man charges for an hour of labor. It`s not possible to stay at the same level if employees work overtime. This is added cost. In some industries it will be a problem to have increased demand, and some will need to hire extra labor. Extra labor will increase wages.

Do you think employees will work more or less if you gave them a lot of money? Labor market pressures requires wages to increase, which means the cost per unit must increase as well. Retailers must raise prices or simply run out of product.

Inflation is when the supply of money goes up and the supply of goods goes down. At the same time, the demand for money goes down, and the demand for goods goes up. Inflation can be avoided, if the factors I mentioned is in balance. It`s all about the balance between the supply of money, and the supply of goods.

Look at Japan. They have printed more money than the U.S, but inflation and interest rates is stable and it has been like this for about 25 years now. They must be doing something right to control the supply and demand of money and goods. All this is theory. Fed Chair Janet Yellen is now warning investors, telling them that the interest rates will start to increase. Many investors are waiting for an imminent hyperinflation. Normally, when the stock market goes down, the interest rate goes up. They are going in the opposite directions.

People think that printing more money will give them more wealth, but that`s not true. If we all have more money, we will not be more wealthy, because more money does nothing to increase the amount of wealth or more «things» in this world.

Why is it like that? It is because the same number of people are looking for the same amount of «things», and that on average will not make people wealthier than before.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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