Love My Roku Devices, But Still Sold It Short
A look at Roku's valuations.
Comparing Roku with GoPro and Fitbit to get a sense of what IPO investors may expect.
My price targets for the stock, both long and short term.
This idea was discussed in more depth with members of my private investing community, Income Idea.
I had to do it, it was too good to pass up.
Roku (ROKU) joined my club of companies whose products I really love and believe in, but either avoid or sold short.
One of the things that I try to constantly remind people is that you have to disconnect the love of the product or service with the business and the stock price.
In the past few months there were a few such examples.
Since the beginning of the year I have been warning readers about the headwinds to be faced by the firearms industry with companies such as American Outdoor Brands (AOBC), Ruger (RGR), Vista Outdoor (VSTO) and others. As much as I believe in gun rights, a Trump Presidency was horrible news for the gun industry. The publicly traded stocks have been pummeled this year. "Shot Show 2017: A Warning Shot Across The Bow?"
In August I discovered that YogaWorks (YOGA) was going to list their company in an IPO. As a yoga practitioner I was instantly hooked. During the due diligence process however I discovered massive valuation issues along with future headwinds and warned folks to take a balanced approach or better yet to avoid the stock. After coming out at $5.50, YOGA is now down more than 50%, trading at $2.71 this morning just a month and a half later. (YOGA: Namaste For Mind, But Not For Wallet and YogaWorks: Beyond The Numbers)
I desperately wanted to love ROKU and was hoping to find an attractive price point to enter after I complete due diligence, but it happened once again.
In my preview Roku article we discussed everything from the company's financials, my experience as a Roku customer and even the legal challenges faced by the company. That had me realize it was best to avoid the frenzy.
If you have not done so already please take a look at my previous Roku articles - "Roku: Great Product, Bad Business?" and "Roku: Beyond The Box" and "Roku - The Kleenex And Postage Scale Problem."
sources:https://seekingalpha.com/article/4111429-love-roku-devices-still-sold-short
Comparing Roku with GoPro and Fitbit to get a sense of what IPO investors may expect.
My price targets for the stock, both long and short term.
This idea was discussed in more depth with members of my private investing community, Income Idea.
I had to do it, it was too good to pass up.
Roku (ROKU) joined my club of companies whose products I really love and believe in, but either avoid or sold short.
One of the things that I try to constantly remind people is that you have to disconnect the love of the product or service with the business and the stock price.
In the past few months there were a few such examples.
Since the beginning of the year I have been warning readers about the headwinds to be faced by the firearms industry with companies such as American Outdoor Brands (AOBC), Ruger (RGR), Vista Outdoor (VSTO) and others. As much as I believe in gun rights, a Trump Presidency was horrible news for the gun industry. The publicly traded stocks have been pummeled this year. "Shot Show 2017: A Warning Shot Across The Bow?"
In August I discovered that YogaWorks (YOGA) was going to list their company in an IPO. As a yoga practitioner I was instantly hooked. During the due diligence process however I discovered massive valuation issues along with future headwinds and warned folks to take a balanced approach or better yet to avoid the stock. After coming out at $5.50, YOGA is now down more than 50%, trading at $2.71 this morning just a month and a half later. (YOGA: Namaste For Mind, But Not For Wallet and YogaWorks: Beyond The Numbers)
I desperately wanted to love ROKU and was hoping to find an attractive price point to enter after I complete due diligence, but it happened once again.
In my preview Roku article we discussed everything from the company's financials, my experience as a Roku customer and even the legal challenges faced by the company. That had me realize it was best to avoid the frenzy.
If you have not done so already please take a look at my previous Roku articles - "Roku: Great Product, Bad Business?" and "Roku: Beyond The Box" and "Roku - The Kleenex And Postage Scale Problem."
sources:https://seekingalpha.com/article/4111429-love-roku-devices-still-sold-short
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