I’ll keep this short and simple. CRSR just crushed their Q2 earnings – raised EBITDA guidance by 17% ($19M) and raised EPS guidance by 36%. Product mix is shifting favorably, gross profit was up 21% YoY and gross margins increased to 33% (up 600 bps YoY). Generated $75M of cash flow in the quarter. And as previously announced, they are building an AI workstation business.
The best part? Valuation is extremely reasonable especially in today’s market.
EV / EBITDA: \~9x
P/E: 12x
Price / Sales: 0.8x
You can’t find bargains like that in this market. This should be a $20 stock. Even at those levels, EV / EBITDA would be 16x.
Positions: $70k worth of calls. This thing is low volume, relatively small market cap and low IV and can move quickly. After earnings it went to $15 and I’d expect it to return to that level quickly.