Call Me Baloo

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  • in reply to: GoPro (instead of ETF) – bankrupcy risk #8047
    Call Me Baloo
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    Hi, I would like to give you a hint, when it comes to stock picking. Usually, successful investors are looking for companies with high market entry barriers. Think of Warren Buffet. Unfortunately, there are a lot of other companies, that have emerged doing the same as Go-Pro. Another point you have to watch while investing in equities is the management. I think Go-Pro had a lot of management issues. A last but very crucial issue is the valuation. The company is still almost worth 1 Billion. A big amount for a company without earnings. What is interesting to note is the fact that 25 % of all stocks are sold short. This means that those investors one day have to buy those stocks back. If the company manages to provide good news, those short sellers will certainly be in trouble. But we have to aknowledge that those guys are very professional and remain skeptic towards that company, for now.

    Best regards

    Hans

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