Shares in FitBit crashed out over 30% – 2CentView has lowered its overall cost basis by selling shares much higher up – so it is more of a disappointment rather than financial pain!
Disappointing from the sense that they are struggling to create businesses which are more than just commoditised hardware products
Healthcare companies have recognised that fitness wearables reduces their overall health care costs – Aetna just signed a deal with Apple – FitBit has the potential to get in this market, but their products and their software are not differentiated enough to really fend off competition from Garmin and Samsung.
FV now $10 post results.
GoPro which reached a whopping $90 last year on hype over a potential media channels, traded down to $9.30 in the after-market post results, but has recovered. They recently launched a drone but they have production issues and are competing with Chinese companies – Earnings estimates did not change after the launch of the drone.
Fair value = $11 for GoPro, post results.
As Samuel Beckett said, “Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better”
However, the Golden rule – take some profit when the stocks are higher up – this cushions the blow and allows you to keep trying for the next potential Amazon or FaceBook!
2CentView has a core position in $FIT, Cost basis = $8. Considering selling the position but in no rush – waiting for better opportunity.