I've been posting my retarded YOLO play on CRSR .
Position: https://www.reddit.com/r/wallstreetbets/comments/lhqgxt/crsr_postiv_crush_discount_yolo_211_am_update/
100 x 3/19 70C +
500 shares avg $39.5
Am I really eating crayons? Yes, I butt-chugged a 60 pack of Crayola this morning so DYOR and decide for yourself.
First and only thing you really need to know is RGB = buy.
But since this sub has been infiltrated by FUD-filled, paper handed wrinklebrain-bears, heres why I am on my way to the moon and it’s not too late for you...
RECAP
Breif history of CRSR, the stock blew up post IPO from $17, riding epic gaming industry performance throughout the pandemic. It hit a high above $51 in Sept '20 before correcting and trading between $41 and $36. The float is low so swings are volatile. Also lots of short volume bla bla
1/13 - a little stock called G M E more than doubled in a day causing to CRSR tank to $36 with some momentum. Possibly a direct result of liquidation in reaction to the squeeze (maybe retail and/or institutional....Citadel is 2% owner of CRSR float)... or maybe just normal volatility fluctuation by the puppet masters, who knows?
Cool, so now the stock is oversold with puny market cap. It starts climbing back to the average peak levels, then ...
1/27 - CRSR announces a secondary PO of 7.5 million shares...it hits a high of $49, before a 2 day selloff. Crash Boogaloo.
After the selloff it picks up momentum running up to the 2/9 earnings report, with expectations of excellent numbers. IV is through the roof. Debate kicks off whether earnings are already priced in and an IV crush was inevitable.
2/9 - CRSR delivers an amazing earnings report. EPS beats estimates, $1.7B revenue for the year, profit margins way up, debt is down, and they said THEY HAVE SO MUCH DEMAND THEY CAN BARELY KEEP UP WITH IT. The only thing that kept them from possibly crossing $2B was semiconductor supply shortages (which every other tech company is dealing with too).
After this amazing ER, the stock tops out at about $48 premarket....before nosediving, nearly hitting $40.
Now many were saying that the runup to the ER was all just hype, so of course it tanked post ER like LOGI AMD and all the rest.
But looking at what actually happned, it wasn't actually just hype. The pre-ER runup was almost all attributable to upward correction from the previous 2 selloffs. The only reason it crashed was because other companies crashed post earnings in 2021, so paper hands sold in expectation of the IV crush...sell limits were triggered, self-fulfilling prophecy.
So the price starts to fall into oversold territory. Quote from Barron's "Of the 11 analysts that cover the stock 10 rate it a Buy, and one has a Hold rating on the name." Literally almost everyone thinks this thing is a bull. Price is already starting to completely recover by Close on 2/9
But then yesterday some genius at Goldman decides to downgrade the stock to "Neutral" from "Buy", causing the selloff to dip even lower, hitting just above $40. Their justification? They think gaming demand could wane in 2021, and also are worried about the fact that CRSR hasn't been able to meet 100% of demand due to shortages of chimps. (ha!)
CURRENT SITUATION
That brings us to today. CRSR is way oversold. $1.7B profitable revenue...yet $3.9B market cap for a fast-growth tech company? pitiful. Almost every analyst, including Goldman, has increased their price targets, many above $50.
Compare that to LOGI..$2.9B revenue ($4.4B+ TTM), at $19.9B market cap and climbing fast. Speaking of LOGI, check out this chart. 1/19 Post-Earnings dip, before running to ATH 2 weeks later.
But CRSR price is still down, why my neuro-atypical friends?
Maybe has to do with the fact that the daily short volume has been above 50% every day? http