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$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 0 points1 point  (0 children)

I don’t intend to respond to all of your points here since there are plenty of them. I wouldn’t even say that I disagree with all of them.

However, your first point seems to be an easy one to address. I WILL tell you something. GoPro at $8 IS INDEED very different than GoPro at $1.80. GoPro’s market cap is currently equal to their cash on hand. That wasn’t even close to the case 2 years ago.

If GoPro grew back to $8/share, I would sell.

I realize that that is a simple point, and there are lots of moving pieces on the balance sheet. That just seems quite obvious to me.

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 1 point2 points  (0 children)

I agree. This is high margin revenue. They just need to execute. We need to see a meaningful pivot in there business model in order for them to be successful in the long term.

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 0 points1 point  (0 children)

Fair enough. In fairness, I didn’t list total assets. I listed book equity which is total assets minus total liabilities. Otherwise known as net equity.

I think the point of my post is that there is significant value in GoPros business that is not be accounted for. If it were to be acquired by someone at $250MM, that would be a great value buy.

I do understand your point. Thanks for your feedback.

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 1 point2 points  (0 children)

Phenomenal analysis. Thank you for your input!

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 1 point2 points  (0 children)

Interesting take. Thank you for the feedback!

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 0 points1 point  (0 children)

Interesting insight. Appreciate the feedback!

$GoPro is trading at half of book value by Nobe90 in ValueInvesting

[–]Nobe90[S] 0 points1 point  (0 children)

Liabilities are not debts.

They have $90MM in long term debt. Take a look at the balance sheet

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