GoPro - I'm of the opinion that it has zero real competitive advantage over your bigger names like Samsung and Apple especially with onset of more mobile phone functionality. You could argue for first mover advantage against that, but first mover is only relevant if your product is relevant; no reason for consumers to purchase a $400 GoPro when they can soon buy a Sony that works even better for half the price.
There's a good writeup on VIC regarding the "chicken cycle" and the data suggests we are near a peak in the market, and past cycles have been quite predictable (by focusing on looking at total supply) and pretty severe. There's a few ways to play it - PPC, SAFM, TSN are the big producers. Of those three PPC looks the most overvalued and is a "pure-play" chicken producer vs TSN where they produce a wider range of products.
Rule no. 1 of shorting is you need a catalyst, or you need to be the catalyst by publicizing your thesis. Overvaluations can persist seemingly indefinitely otherwise.
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GoPro - I'm of the opinion that it has zero real competitive advantage over your bigger names like Samsung and Apple especially with onset of more mobile phone functionality. You could argue for first mover advantage against that, but first mover is only relevant if your product is relevant; no reason for consumers to purchase a $400 GoPro when they can soon buy a Sony that works even better for half the price.
Pretty easy to pitch selling something as volatile as GPRO trading at 50x P/FE. http://quotes.morningstar.com/stock/GPRO/s?t=GPRO
Best of luck with your interviews!
Thank you very much!
Shorting is a poor use of capital IMNSHO.
waffles
There's a good writeup on VIC regarding the "chicken cycle" and the data suggests we are near a peak in the market, and past cycles have been quite predictable (by focusing on looking at total supply) and pretty severe. There's a few ways to play it - PPC, SAFM, TSN are the big producers. Of those three PPC looks the most overvalued and is a "pure-play" chicken producer vs TSN where they produce a wider range of products.
Rule no. 1 of shorting is you need a catalyst, or you need to be the catalyst by publicizing your thesis. Overvaluations can persist seemingly indefinitely otherwise.
Pariatur perferendis et earum et. Eligendi est error similique. Consequatur voluptatem adipisci molestias est.
Ipsa veritatis corporis temporibus. Ut quia et est earum magni dolorem.
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