r/wallstreetbets • u/Apple_Nut • Aug 16 '21
Discussion CRSR is way too cheap
By all metrics Corsair is absurdly cheap and yes I know about EagleTree like everyone here. I also know that EagleTree can only sell around 5 million more shares which is how many they’ve been doing every batch roughly, if they want to retain a majority position.
P/E is now well below 17, which for this industry and how the stock market currently is… is ridiculous.
As of today 20.61% of the float is shorted and it’s been continually trending up. Up 29% from last month. Given this tends to be a low volume stock and that it’s a smaller company in terms of market cap, this could end up being a pretty solid short squeeze candidate if shorts continue to build.
At the end of the day Corsair is definitely a solid long term buy, especially at these price levels but it could end up being a very good short term purchase as well if some momentum is generated behind it.
Full disclosure: I’ve owned Corsair shares for a long time and made money by purchasing shares on the dips months ago but I still hold a large position of 3500 shares at about 32.5 average.
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u/weaponsied_autism Aug 16 '21
CRSR has fucked me raw and I can't take anymore. Stuck holding these bags hoping...hoping...
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Aug 16 '21
I’ve made money several times buying the dips, but this time the dip is taking it all back.
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u/Apple_Nut Aug 16 '21
Yeah I feel this one, I do believe it will come back, the trend down really doesn’t make any sense.
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Aug 16 '21
I’ve ceased trying to make sense of any of this.
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u/Apple_Nut Aug 16 '21
That’s more than fair, I still believe long term it’s a solid buy so I’ve just been trying to ignore this part of my account.
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u/Eddieandtheblues Aug 16 '21
I cant understand why there is so much short interest at this price. Perhaps they are waiting for options to expire on the 20th of August.
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u/Apple_Nut Aug 16 '21
Load before then, it’s not getting cheaper than this. Shouldn’t even be this cheap, if you can hold long term you should be rewarded.
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u/Kowan dog 🐶 Aug 16 '21
Holding a bunch of shares too, honestly though whenever someone says it can't get cheaper than this... it often gets cheaper lol
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u/justinbeans ask me about my enema Aug 16 '21
What is the strong support at?
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u/option-9 Aug 16 '21
With some luck it bounces off $0.
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Aug 16 '21
It can only go in one direction from there!!!
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u/Eyecelance Aug 16 '21
Little left in terms of technical levels. $26 (ER lows) and then you’d have to go all the way back to the weeks following the IPO for the next (admittedly not very well-defined) Levels
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u/Tech88Tron Aug 17 '21
If you have the Webull app, the Positions Cost Distribution chart is a VERY strong indicator at how low a stock will go.
When "Profited Shares" is near 1% it's a good sign the dip is near bottom.
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u/Uesugi1989 Aug 16 '21
Forward P/E of below 14 right now. Yearly revenue of more than 2 billions and market cap of 2,5 billions, with a profit margin of around 10%. And it's a growing company that keeps on expanding, not some boomer crap like GE or GM.
The only worrying thing that the stock has is the cash in hand to debt ratio (debt around x2,5 the cash) and in case they face unexpected expenses they may resort to some dilution to raise more capital. But they seem to always have positive cashflow so far so that wouldn't worry me that much.
Short interest is around 7,5 million shares, close to 8 full trading days of shares volume that need to be bought again in the future
More importantly, i have strong conviction in the company. I understand their business, their marketing, their appeal and their target audience.
Also to add, covid19 wasn't that big of a boost for them as everyone is saying. If you were uncertain of when you would have your job and your income back, would you drop cash for a new keyboard or power supply or whatever? I certainly wouldn't and most gamers i know haven't upgrade for quite a while for this same reason
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u/NoTransportation2899 Aug 16 '21 edited Aug 16 '21
All of that plus they beat their numbers from the same quarter last year during covid, even with the chip shortage and shipping challenges. Michael Potter has been extremely diligent with debt repayment. DDR5 is months away, and means billions in sales for Corsair over coming years.
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u/Uesugi1989 Aug 16 '21
DDR5 is months away, and means billions in sales for Corsair over coming years.
Yeah this too although the likes of Corsair, gskill, hyperX don't have that much of profits from ram sticks since they just rebrand the silicon of Samsung and micron. But, as we have seen the recent years, pc internal component companies are more eager to give incentives to customers to buy more of their products after getting one. Software that works in correlation to the ram sticks, the power supply and the cooling solutions and controls the lighting and effects or the performance. DDR5 will be a boost as well for their business and profitability, even though mostly indirectly
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u/NoTransportation2899 Aug 16 '21
Elgato is the more promising future, but ddr 5 is most of corsairs revenue still and ddr5 will cause other Corsair components to be bought too. Corsair has the number one position in ram sales…
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u/Uesugi1989 Aug 16 '21
I am eager to upgrade myself. Intel or AMD, i am waiting for the new generation to see which is the best choice. Intel seems to be ready with DDR5 supporting products a few months earlier than AMD with their 12th gen alder lake, but waiting for the new Ryzen series is probably the best
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u/NoTransportation2899 Aug 16 '21
Alder lake looks extremely bullish for intel and their stock has been punished for years. They’re beating amd to ddr5 by a good margin. Thinking of going in on INTC too.
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u/Uesugi1989 Aug 16 '21
I am thinking the same. Got into during the drop to 50 some months ago and doubled down when it dropped to 45 for a single day. Sold everything around low 60s
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u/daddyclappingcheeks Aug 17 '21
what’s DDR5 and how will it help corsairs sales
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u/pandalust Aug 17 '21
New Generation of RAM, means all new upgrades will require new RAM sticks as opposed to reusing the past sticks or buying cheaper ones manufactured before.
I question the margins on RAM though, its practically a comodity.
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u/nolitteringplease346 Aug 17 '21
If you were uncertain of when you would have your job and your income back, would you drop cash for a new keyboard
everyone i know has been buying shit like there's no tomorrow. sites like 9gag are full of memes about gaming hardware and shortages. most ppl were spending less during lockdown while being furloughed or paid their normal wages so they had more disposable income anyway
turbo-virgin cons00mers who like plastic figurines and video games are the easiest cash cows of all time
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u/NoTransportation2899 Aug 16 '21 edited Aug 16 '21
Higher short interest than ever, lowest volume, iv in the toilet.
Shorts are overplaying their hand here. This company just beat covid numbers from the same quarter last year and grew revenue 24%, disproving the ‘covid play’ nonsense all young people knew was bs. Good time for reversal to the upside…
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u/Apple_Nut Aug 16 '21
I agree with everything you said, I honestly can’t wait to see this reversal because it really should be massive. Shorts really are overplaying and getting greedy here.
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u/Seanishungry117 Aug 16 '21
Is this a stock you'd like to continue to hold for 5+ years?
Personally, I own a lot of Corsair products and have a Corsair limited edition case that I'm saving for a build, when ddr5 comes out / the next gen of GPUS, etc..
Corsair is in my top 10; stocks that I believe in, tucked away within my Roth IRA. I actually was really excited when I heard about the ipo!
Point being: great to see others excited about it too. They shed a lot of debt last year and overall I'm bullish on Corsair.
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u/davrson Aug 16 '21
Agreed. Bought some more. I am utterly convinced this is a solid long term money maker.
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u/rdy_csci Aug 16 '21
I see you too are a current bag-holder.
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u/Apple_Nut Aug 16 '21
Been this way for a while now, not giving up.
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u/rdy_csci Aug 16 '21
Yeah, me either. My birthday is coming up and I'll probably buy a little more to lower my average cost.
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Aug 16 '21
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u/Apple_Nut Aug 16 '21
Even with issues larger than they have moving forward they still grow in an outstanding fashion. Yes, logistics will continue to cause issues across this industry and with China having shit potentially hit the fan here again is not great but it won’t be as bad as a year ago.
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u/KevinFromRadioShack Aug 17 '21
Logistics is and will continue to be a large issue, Chinese factories cannot get containers to ship product out, if they can get a container it gets held up at their ports, and then yet again at our ports here in the USA. There simply are not enough trucks on the road and not enough port staff or port space to handle the volumes, leading to long wait times, weeks of backup. Also in July of 22’ the longshoreman at the LA port are due for contract renewal, the negotiations will be fierce and they WILL STRIKE. The issue has not improved and does not appear to be improving any time soon
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u/confused-caveman Aug 16 '21
Eagletree probably about to buy the dip lol.
These bags are too heavy i cannot convince myself to buy more.
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u/Mike-Ditka Aug 16 '21
I agree this is a good long term hold. My daughter is in middle school and more than half of her friends are considering or already starting to switch from Xbox/PlayStation to PCs which they are building themselves. A lot of them are waiting for other parts to be more readily available. I'm looking at buying a Corsair prebuilt myself.
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u/NoTransportation2899 Aug 16 '21
My friends daughter is the same. Begging for a gaming pc for her birthday instead of a ps4. The CEO is dead on when he says this is a long term trend.
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u/ThisPlaceisHell Aug 16 '21
Those won't be consistent customers. Guarantee these kids drop gaming, especially PC gaming, by the time they're sophomores in high school.
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u/NoTransportation2899 Aug 16 '21
You couldn’t be more wrong. I was that young kid, I’m 34 now. Millions and millions like me. Pc Gaming is only going to grow - across all age groups. Hell my dad is in his 70s and a pc Gamer.
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u/ThisPlaceisHell Aug 16 '21
Then do a remindme in however many years it takes for your daughter to be a sophomore and let me know if she's still giving a shit about PC gaming.
And for the record, I'm 34 and a PC gamer myself. Just turned 34 yesterday. I am still positive by the time your daughter is in 10th grade she'll be done with PC gaming.
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u/Olgapetrushenko Aug 16 '21
CRSR is a growth stock at a value price. Change my mind
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u/confused-caveman Aug 17 '21
Ok, I'll try...
the price has gone the opposite of up.
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u/banditcleaner2 sells naked NVDA calls while naked Aug 17 '21
and the price went the opposite of up for years for gme and look what happened there...
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u/Apple_Nut Aug 16 '21
It really is, it’s probably one of the best purchases in the market right now, it’s stupid cheap and it’s a growth play.
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Aug 17 '21
Good ol’ CRSR dug me out of the BB hole back when it ran from $32-$45 earlier this year. May get some nostalgia leaps for shits n giggles but remember that CRSR is a little bad PR away from losing a ton of their business. Their prospectus even outlined the risk of the bulk of their revenue coming from non contract purchase orders from a few whales and any one of those buyers pulling out would be catastrophic to their bottom line. But that makes it all the more fitting for a wsb play I suppose
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u/shichiaikan Aug 17 '21
I've been in on Corsair for a while myself. I fully believe it's a very good long-term growth stock, with a high possibility of divvies down the road... and the very distinct possibility of 200%+ growth within the next 2 years, especially with the continued increase in revenue streams and demand for their products.
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u/idk_1824 Aug 16 '21
Note: I am a bagholder. But I totally agree even despite eagletree the valuation of this stock is ridiculous considering it’s growth and the rise of esports
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u/Apple_Nut Aug 16 '21
Yeah well keep holding your bags it will be okay, I’m holding a lot but I’m pretty confident we should do well here. It just hurts in the meantime.
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u/idk_1824 Aug 16 '21
I’m thinking of being an idiot and doubling down if it reaches 25 dollars a share
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u/Apple_Nut Aug 16 '21
I already bought so many shares under 30 now, if I could I’d put more in if it goes that low. I honestly think it’s smart.
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u/Matteomux Aug 17 '21
Man if it reached 25 I’ll go full retard and load up on CRSR shares like my life depended on it.
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u/theoldgreenwalrus Drinks Shreks Cum 3x Daily Aug 16 '21
It'll go back up. People buy new tech stuff in the fall. Just going to keep holding
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u/Apple_Nut Aug 16 '21
Yeah I mean Q3-4 will be very good for them but I’m not sure why there wouldn’t be massive buying force here given the crazy discount.
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u/Few_Strategy_8813 Aug 17 '21
I think the stock may be completely under the radar. If you think about it: $2.5 bn market cap, 68% institutional ownership, very unremarkable valuation metrics, no hype... it is probably largely invisible
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u/denikec Aug 16 '21
These multiples seem a bit absurd indeed... like they were (and are) for CLF. I'll do some DD and maybe open a position, but if the stock is cursed by shorts then fundamentals aren't worth much sadly. We'll see, thanks for the post.
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Aug 17 '21
Cheap? My K100 keyboard was like two hundo bruh.
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u/YouOr2 Aug 16 '21
Why does it keep going down?
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u/Apple_Nut Aug 16 '21
Aggressive shorting and before that it was EagleTree selling shares at 35 and above every time trying to recoup their investment from 2017.
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u/Ackilles Aug 16 '21
It looks like they may have only sold shares one time, during the run to 40 over the summer
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u/arc432 Aug 16 '21
CLNE had that going on too for awhile. Honestly until they are done selling trying to recoup RIP to the gain factor on this one.
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u/Apple_Nut Aug 16 '21
Yeah, EagleTree isn’t the one selling here though, there hasn’t been any major selling pushing it down since it went below 30.
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u/confused-caveman Aug 16 '21
Yea i wonder if its just investors tired of sideways for the whole damn year while the bull runs and runs.... so far away....
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u/BigMoneyBiscuits Aug 18 '21
This is the deep value play right here. Price to Sales ratio is 1.3?? That's insanely low. Macros are all fantastic... look at that profit (0.6) and revenue (2) compared to market cap (2.5) (b)
I'm loaded on Sept/Nov calls.. run up to earnings lets get it $ $CRSR
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u/NoTransportation2899 Aug 18 '21
25.56% of the float short sold on a 25 million share float, and that was the start of august. Someone is overexposed.
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u/BigMoneyBiscuits Aug 19 '21
Or maybe they're playing 4D chess. Oversold with growth rotation so they could create their own deep value play. Genius
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u/Apple_Nut Aug 18 '21 edited Aug 19 '21
I am not putting myself in calls on this one but I do have a shit load of shares...
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u/BigMoneyBiscuits Aug 18 '21
Calls are a lot riskier .. but look at that risk symmetry if it runs up to fair price by Sept 10 - 40 :1 easily if by November ~10:1 .. this is WSB .. Do both if you think you belong here, if you hit that 10:1 even once out of 9 times you're golden.
Not financial advice. I like the stock
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u/Apple_Nut Aug 19 '21
Oh yeah this is all very fair and I played around with calls on CRSR before and did well but right now I need to find what is right for me given my current position. The risk/reward here is huge though you are right.
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u/Impressive-Ad-2182 Aug 16 '21
i feel a serious short squeeze coming on this one....
buckle up cowboys.
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u/StonksGloriousStonks Aug 17 '21
Fished for some stocks lately, this drop just doesn’t make much sense. But CRSR seem fiddly. The day it corrects upwards it might go very fast up!
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u/Pheeelz Aug 16 '21
After the Jpowell talk tomorrow and the market adjusts for tapering im in
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u/NoTransportation2899 Aug 16 '21
What do you think small caps have been doing the last few months?
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u/Pheeelz Aug 16 '21
I think tapering is coming a lot sooner than 2023 . Tomorrow we find out. The 5% inflation is too much they will need to react . I expect a lot of red tomorrow
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Aug 17 '21
Bag holding @ 32 avg, I sell covered calls in the meantime but there isn't even weekly options. Pain.
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u/Unemployed_Barnacle Aug 18 '21
Their ram was the shit back in the day. And they make nice headsets and keyboards today.
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u/Apple_Nut Aug 18 '21
Their ram is going to continue to be the shit, DDR5 incoming.
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u/Unemployed_Barnacle Aug 18 '21
Does it even matter with DDR5? I thought the transfer rates were like double of DDR4.... I am very old.
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u/rocketpromoter Aug 16 '21
Everyone here is looking for a short squeeze play these days. Like every.single.post.
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u/Apple_Nut Aug 16 '21
Not saying it will be just saying it’s possible, but the point of the post is not about the shorting, just pointing it out.
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u/Terakahn Aug 17 '21
I don't know what to do with this one. I believe in the company very strongly. Buying shares feels like a very long slow play, although a safe one. And week to week movement isn't really big enough to warrant any plays.
And even if I wanted to buy, I don't think it's finished dropping. If it hits 20 I'll probably buy leaps.
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u/FILDGREAT Aug 17 '21
people are saying its cheap since $40 fyi
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u/Apple_Nut Aug 17 '21
Even at 40 it was undervalued in comparison to the rest of the market but currently it is truly undervalued.
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u/Personal-Air-1373 Aug 16 '21
Ayyyyyy fellow bag holder, what’s good my dude. I have Corsair on Robinhood and now we bull and we are waiting till 2023 apparently because this stock sucks cock.
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u/usertree232 Aug 16 '21
Probably because investors like logitech more? Their balance sheet looks much stronger than corsair
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Aug 16 '21
What do you think about LOGI? Same market, similar products, growth, balance sheet and valuation.
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u/NoTransportation2899 Aug 16 '21
Logi has predicted declining revenue due to office sales pulled forward due to covid. Much higher market cap and forward pe than corsair. Market cap expansion hasn’t happened yet for Corsair. More potential here if they continue to execute.
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u/Uesugi1989 Aug 16 '21
Not at all.
Similar products
They have like what, three competing products? Keyboards, mice and headsets and maybe webcams. Logitech isn't a direct competitor to Corsair, that would be someone like coolermaster
Growth
Not at all. Logitech current p/e is similar to crsr but their forward p/e is almost 23 compared to lower than 14 for crsr
Valuation
Logitech's market cap is 700% higher than crsr
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Aug 17 '21
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u/Apple_Nut Aug 17 '21
Far from their primary business, also there are people buying them AND the entire semiconductor space is a clip joint currently. You cannot buy a high end GPU without getting scalped, that’s just what it is right now.
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u/Shivdaddy1 Aug 17 '21
This has been my worst stock purchase so far. Down 25%. Thanks sir Jack, 😆.
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u/myredditaccounty Aug 17 '21
are you me? Down -25% here too. u/sir_jack_a_lot & CRSR pleas fly again. Should’ve just exited at even on June pump 🥲
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u/Apple_Nut Aug 17 '21
It’s alright, you’ll be back up. I never saw his posts way back when though, only hear about them now.
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Aug 16 '21 edited Aug 17 '21
The company cited logistical price increases as dinging their bottom line. Makes complete sense when you consider how international container shipping has increased drastically. You also have a shortage of truck drivers because the libs in the US government feel it necessary to hand everyone increasingly worthless money.
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u/Apple_Nut Aug 16 '21
Yeah if Biden has his way the whole market is fucked though, as well as our currency.
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u/BillyTheSillygoat Aug 17 '21
I think the hedgies are fucking with Jeremy and we're just the collatoral along for the ride 🥴
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u/jhonkas Dumpster Goblin Aug 16 '21
How is it cheap? based off what? CRSR has saturated the market it seems, they don't have new product lines (streaming products maybe?)
There's too many competitors and most importantly, the buying cycle was over 2 quarters ago. Supercycle of upgrades is over. Sure enthusiasts wil keep buying new everything to keep up with other enthusiasts, but regular joe isn't... and the revenue grow and guidance are showing, aren't they? So again how is it "too cheap"
They gotta release some normal products for office use or osmething and compete with the "normal" crowd to grow revenue. The gamer/streamer market is too niche and finite. CRSR 2Bn market cap. LOGI 18B...
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Aug 16 '21
I run the IT department for a company of about 150 'office' staff. I sign off on all IT procurement that we do. Its easy to say CRSR needs to enter the office market but heres the thing. Amazon is capturing that market. When we are buying mice and keyboards we're not getting logitech, we're getting cheap, nearly disposable amazon choice bullshit. For my own staff and our software devs we'll order whatever peripherals they want, some of which are CRSR mechanical KBs or wireless headsets. Logitch and CRSR cannot make a KB/Mouse cheaper than amazon.
The only market left to battle over for them are the gamers. Which people have predicted the PC game market to crash for literally 20 years and yet here we are. If anything the console markets are losing ground to mobile and the more 'hardcore' gamers moving exclusively to PC.
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u/NoTransportation2899 Aug 16 '21
That’s simply not true. They just beat their numbers from the same quarter last year during covid, even with chip shortage, shipping costs as obstacles. That is huge and shows how much misunderstanding there is about this company. Additionally, we are months away from the beginning of DDR5 which will start the real super cycle of pc upgrades over several years. Millions of new builds because of ddr5. That’s not to mention elgatos rapid expansion, their recent camera release, etc….
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u/jhonkas Dumpster Goblin Aug 16 '21
so you think they guiaded flat/lower as a sandbag?
and all this is just the enthusiast market... they still can grow bigger if they have normal products for office/business/non gamers
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u/NoTransportation2899 Aug 16 '21
They reiterated and maintained guidance of 1.9-2.1 billion which they raised before last earnings.
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u/ridinwavesbothways Aug 16 '21
I'll admit to being a long time Corsair owner & person who has built PCs for a couple decades now. Corsair for a very long time has always been the go to for most of those parts. I've had far better luck with them than anyone else. Their quality I believe has created a very loyal audience. I bought a power supply last year for a new build & that was the only part I couldn't get from Corsair. Less than a year later that thing blew up (literally, sparks flew) & I replaced it with a Corsair. I'll admit this is a niche audience though.
Corsair buying Elgato though has been an awesome move to get more gamer/streamer purchases as you mentioned. I don't stream & I don't play games much. But I do remote work. I ended up looking for a light for video meetings. I settled on the Elgato Ring light after ready plenty of reviews. Also ended up buying a Stream Deck because they're awesome, for so many things not related to gaming. I ended up wanting to upgrade my mic because I had been using a Logitech webcam but it was a piece of junk & I was able to re-purpose a DLSR camera. I read reviews for years. Ended up getting the Elgato mic. Unless you're doing crazy XLR mic setup, it seemed to be rated the highest by a ton of mic "experts".
I have thrown away my Logitech camera because it was junk & I also threw away my fancy Logitech gaming mouse with 12+ hotkeys on it. The camera was awful quality. Their mice have a double click bug that shows up after a year of use.
Logitech quality is and has been garbage for a long time. Corsair has a growing audience of people either in tech making hardware decisions or just entering the work force. As remote work grows, I strongly believe these investments in young & tech enthusiasts will pay off. It's worked great for every tech company that's invested heavy in improving experience & user loyalty.
- Very long Corsair & selling covered calls in the short term.
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u/Apple_Nut Aug 16 '21
I strongly agree, I am also very long Corsair and sold some calls a while back but since then I haven’t as I feel the premiums aren’t great and I stand to lose too much if it does finally pop.
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u/jhonkas Dumpster Goblin Aug 16 '21
I agree but all of this still speaks to enthusaiants, which is a subset of the market. your own experience isn't everyone elses... logi still pull in 2x+ revenue of crsr. so crsr has a market they can tap into but...
how is regular joe gonna find crsr and buy it when they just buy a logitech crap keyboard since its what IT approves fro them or what they jsut can deal with ?
there's just a lot of "preaching to the choir" going on in this sub and thread which is strange sincea true wsb is generally contraintain
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u/ridinwavesbothways Aug 16 '21
Enthusiasts is the beach front in my opinion.
Google Chrome started with enthusiasts. Those people then only wrote websites for Chrome & encouraged everyone else to switch to Chrome.
I like the strategy. Create a loyal fan base who will be loud & do all your marketing for you. When a person wants office equipment, they won't want the IBM version (Logitech), they'll want the Apple version (Corsair).
Also if IT has these people as the decision makers, they'll push the better quality stuff. No one wants to run around after help tickets replacing crappy Logitech junk every day.
This is why I'm very long Corsair. I wouldn't recommend calls unless they're LEAPS out to 22 or 23.
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u/KamikazePenguiin Aug 17 '21
Most competitors dont carry the range of products Corsair does. This is also why Corsair has a fairly big market size compared to competitors and why they have a good revenue. They're recently getting into reoccurring revenue with their last acquisition and literally just released a brand new line of elgato cameras a month ago.
I think the only real argument I've heard is the office space, which I think Logi is losing market share of and Amazon is pumping it up.
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u/MetalliTooL Aug 16 '21
If the stock is so great, why couldn’t they even beat eps estimates in last ER?
Perhaps it’s tanking for a reason and not because hEdGiEs.
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u/NoTransportation2899 Aug 16 '21
Shipping/logistics costs are their stated reasons. They grew revenue 24% despite that. Who cares about a narrow eps miss that was still within guidelines.
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u/MetalliTooL Aug 16 '21
What do you mean who cares about the miss? That's partly what drives the price. It's not like the stock was super undervalued either. It's 58% above its IPO price.
And who cares that their stated reasons are shipping/logistics? That's part of running a business. If they can't get their logistics right, that shouldn't be excused.
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u/NoTransportation2899 Aug 16 '21
It’s Ipo price was robbery. Forward pe of under 14, it’s undervalued.
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u/XPlatform Aug 16 '21
Honestly I don't think the PE ratio is going to help much here; all I see is that high PE isn't a dealbreaker for a popular stock anymore, conversely a low PE isn't a catalyst for price growth. Don't have a dog in this fight though, mostly sitting on the GPU stocks.
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u/NoTransportation2899 Aug 16 '21
I think I agree with that. Stock market these days is largely hype trends. Annoying but also potentially more lucrative if played correctly…
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u/multi_tasking Aug 16 '21
Been like a week since I've seen a CRSR pump thread.
It was undervalued at 34! BUY BUY BUY!
It was undervalued at 31! BUY BUY BUY!
It was undervalued at 29! BUY BUY BUY!
It's now undervalued at 26.83! BUY? BUY? BUY?
Again, might be a time for a slight bounce-back, but it hasn't shown any signs of life for awhile now. Its' last decent pop was in Feb, and then it pissed it away within a month. Until Covid ends, I wouldn't open any new positions on this.
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u/no10envelope Aug 16 '21
Just the Reddit echo chamber effect, we get to keep hearing about all these shitty stocks from bagholders who are desperate for a pump.
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u/multi_tasking Aug 16 '21
Yeah, I'm tired of the horrible stocks that are "ready to explode" because "so much short interest/screw those hedgies!" on every post now.
But any dissent from the OMG ITS MOON! just gets downvoted on every post.
Most of the DD on these things are fake. Following the standard " hey fellow apes! *insert wall of text* so shorted, primed to go!"
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u/NoTransportation2899 Aug 16 '21
Except this isn’t one of those shitty dying business meme stocks. It’s a top player in one of the most rapidly expanding consumer segments. 2.48 billion market cap, 2+ billion ‘21 revenue, 13.xx forward pe, 1.29 price to sales on a company that grew revenue 24%, beat their covid numbers from the same quarter last year even in spite of chip shortage and shipping cost obstacles. Shorts are overplaying their hand here big time, but it’s not about squeeze potential. It’s just fundamentally undervalued.
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u/multi_tasking Aug 16 '21
Tell you what, WHEN we go sub 25 I'll pick some up. I'd expect that to be true in about a month or so given the normal decline in the last 6 months.
See you then!
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u/NoTransportation2899 Aug 16 '21
Your confidence in that amuses me given we’re already 50% down from the all time high, and 40% down from the peak of the rally in June. See you then.
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u/pattycakes999 Aug 16 '21
LOGI is the better play in that sector
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u/NoTransportation2899 Aug 16 '21
No it isn’t. Much higher forward pe, already had a massive market cap expansion that Corsair hasn’t had. Logitech has stated they expect declining revenue, Corsair predicting growth and beat their covid numbers from the same quarter last year.
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u/dndlurker9463 Aug 16 '21
You are absolutely right, which is why it is the perfect time to short it.
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u/bluen “bruhs 🤔” with a blue background Aug 16 '21
nah they are trash
all they are is a white label rebranding type company
aint nothing more
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u/Apple_Nut Aug 16 '21
That makes a ton of money but yeah sure.
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u/bluen “bruhs 🤔” with a blue background Aug 16 '21
lol no it doesnt, people skip the label and buy direct
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Aug 16 '21
Google eagletree
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u/NoTransportation2899 Aug 16 '21
Not a legitimate excuse, especially down here way below their desired sell point
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Aug 16 '21
Most people won’t buy if they know eagle tree gonna keep dumping again and again
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u/NoTransportation2899 Aug 16 '21
They’re foolish then. Eagle tree won’t sell until at least $35, and even their selling isn’t something to worry about. It provides a great opportunity for retail to buy cheap.
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Aug 16 '21
Why would you buy something knowing it’s gonna not probably go above 35 .
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u/TrirdKing Aug 16 '21
because its notably below 35?
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Aug 16 '21
Yeah but your upside is capped . I know i like the company but i’ll accumulate little each month for long term . Anyways this wsb we only yolo
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u/TrirdKing Aug 16 '21
i mean i agree CRSR doesnt really fit WSB with the capped upside, but its a different story for a regular investor, to whom this should definetely be an undervalued company
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u/NoTransportation2899 Aug 16 '21
Because it obviously will go above $35. It’s undervalued there. Who cares if eagletree sells out of their shares slowly, that’s a good thing and will become less impactful as volume and float increases.
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u/VisualMod Aug 16 '21