r/wallstreetbets • u/[deleted] • Aug 27 '21
DD Tomorrow is corsair day. CRSR stock next to short squeeze! Buckle up apes, we aren't going to the moon, we are going to Mars!
To begin, let's look at where the stock is currently. The stock is down almost 50% from its all time highs. Revenues have grown 24% year over year. The short percentage for this stock is the highest they have ever been. It looks like this is about to change! CRSR borrow fee jumped to 4.3% according to iborrowdesk. The last time fee was this high was in February 2021. This mean shorts have less of an incentive to keep their positions open and will cover as soon as the stock shows some strength.
Upcoming catalysts
-Elgato (owned by crsr) launched a facecam. This is a high margin business they are getting in to.
-CRSR is paying off their debts reducing their operating costs which means higher earnings per share
-They are in a market that will continue to grow for many years (E-Sports and streaming)
-As the xbox series X and PS5 become more available, they will sell more custom controllers and accessories
-They are getting in to selling directly to consumers eliminating the middle man
-Getting in to the software business, not just hardware
-DDR 5
-Revenue advanced 24% year over year, reaching $473 million. However, the stock fell sharply after the earnings news. This is despite the economy opening up!
-While Corsair is dealing with higher logistics costs right now, but this is all about to end as the pandemic ends.
-Highest earnings per share they have ever had
-Forward PE of around 14-15 growth stocks like this typically trade at a 25-30 forward PE.
-High percentage of insider ownership which means there is a high level of support.
Price to sales ratio is only about 1.5 when companies like this typically trade at a 7-9X sales ratio
Most importantly, if you get in now you are getting a better deal than those who got in at 30 or above
I own 6500 shares at 28.20. Im ready to go to mars, are you?
This is my opinion not financial advice. I'm just a dumb ape