GoPro stock crashing, Founders got around the lockout

[OutHouse]

wtf...

sold my shares and taking my money and running, bitches.

http://investorplace.com/2014/10/gpro-stock-gopro-founders-lockup/

GoPro (GPRO) stock has been running hot since its late-June IPO. Shares of GRPO stock are up more than 240% since hitting Wall Street, and up 50% in the past 30 days alone.

gopro gpro stock 185 GPRO Stock Crashes as GoPro Founders Get Around the LockupBut GPRO stock is crashing today on news that founders Nick and Jill Woodman have found a way to “cash out” early, despite a lockup period that’s supposed to expire on Dec. 26.

Normally, you can’t sell shares until 180 days after an IPO — so GPRO stock should be locked up in early investors’ hands until just after Christmas. However, GoPro posted a press release today informing investors of plans from its founders to gift just more than 5.8 million shares to their new, namesake Jill + Nicholas Woodman Foundation.

Here are the details on this GPRO stock move, per the release:

“GoPro, Inc. (NASDAQ: GPRO), enabler of some of today’s most immersive and engaging content, today announced that GoPro’s husband and wife founders, Nicholas and Jill Woodman, have provided a personal gift towards establishing a new charitable organization, The Jill + Nicholas Woodman Foundation. J.P. Morgan Securities LLC, the lead book-running managers of the Company’s June 2014 public sale of 20,470,000 shares of Class A common stock, has agreed to release the charitable organization from a lock-up restriction, effective October 3, 2014, with respect to the 5,821,739 shares of the Company’s Class A common stock gifted to it.”

Now, it’s unclear whether the move will result in a big liquidation of GoPro stock sooner than later. If the Woodmans (or the manager of their charitable trust) believe GPRO stock has more upside, they’ll likely hang on to at least some of those shares for a while after the lockup.

A large sale also would be a bad idea because the dilution to existing GPRO shareholders — which include the personal stakes of the Woodmans as well as other GoPro execs — could cause trouble around the office.

But the loophole is interesting nevertheless.

For the record, I am a big bear on GoPro stock. I just posted the arguments for a big move down in GPRO stock, which include valuation risks, challenges to GoPro margins and its future media plans and general sentiment concerns.

But the lockup risk to GPRO stock was a biggie — and the news that founders might be jumping the queue in an effort to cash out is certainly worth watching.

 

[andylawcc]

and SEC did nothing.

 

[alkemyst]

and SEC did nothing.

It's a legal loophole.

 

[andylawcc]

then
1) I am surprised no one exploit this loophole yet.
2) or it already been exploited but didn't make it to the news
3) SEC should close the loophole

 

[ponyo]

I don't understand what's so special about GoPro. Isn't it basically a camera people mount on helmets and stuff? And that's worth $10+ billion?

 

[smackababy]

I don't understand what's so special about GoPro. Isn't it basically a camera people mount on helmets and stuff? And that's worth $10+ billion?

This. They took a ruggedized camera and strapped it to a mount. Skateboarders have been doing that for years with duct tape...

Not that I don't think they idea is cool. They were really just the first in the market to get recognition. Now, every mountable camera is called a GoPro.

 

[Ns1]

I don't understand what's so special about GoPro. Isn't it basically a camera people mount on helmets and stuff? And that's worth $10+ billion?

No, the brand name is worth 10+ billion, not the device itself.

 

[smackababy]

No, the brand name is worth 10+ billion, not the device itself.

Why is there a huge value in a name brand of a camera that can mount to a helmet?

 

[Ns1]

Why is there a huge value in a name brand of a camera that can mount to a helmet?

Because when I tell you to buy a camera that mounts to a helmet, the first thought in your mind is GoPro and not one of it's competitors. I bet a majority of the population can't even name a GoPro competitor.

You sure as fuck aren't going to give your nephew who's into extreme sports a camera + duct tape for christmas.

 

[andylawcc]

its like Red Bull, why no other company can replicate its success?

and what NS1 said about Xmas presents

 

[smackababy]

Because when I tell you to buy a camera that mounts to a helmet, the first thought in your mind is GoPro and not one of it's competitors. I bet a majority of the population can't even name a GoPro competitor.

You sure as fuck aren't going to give your nephew who's into extreme sports a camera + duct tape for christmas.

Did you say the same thing about TiVo? Because, I can't name a single "DVR manufacturing", but I am damn sure most people don't have a TiVo.


And, if I had a nephew that was into extreme sports, I most certainly would get him a cheap camcorder and roll of duct tape. I'd tell him to stop being a corporate sellout pussy and do it like the real extreme sports guys did.

 

[Ns1]

//edit

ah never mind, fuck it.

 

[smackababy]

//edit

ah never mind, fuck it.

And that piece didn't help TiVo near as much as they hoped. They were worth $60 a share in 2000; they are under $13 a share today and aren't even a name brand anymore. I'd wager that anyone who wasn't at least a teenager in 2000 doesn't know what a TiVo even is. And, IIRC, they lost their patent suit for DVR technology.

 

[luv2liv]

8% down aint bad.
i thought it would be like 30% or more

 

[andylawcc]

//edit

ah never mind, fuck it.

true race to the bottom, concede, you can't win, let him have it.

 

[Ns1]

true race to the bottom, concede, you can't win, let him have it.

:thumbsup:

 

[cubby1223]

Did you say the same thing about TiVo? Because, I can't name a single "DVR manufacturing", but I am damn sure most people don't have a TiVo.

Because a dvr is obtained by the cable/satellite provider, not purchased at your local WalMart, and your choice in manufacturers is whatever the provider chooses for you.

And, if I had a nephew that was into extreme sports, I most certainly would get him a cheap camcorder and roll of duct tape. I'd tell him to stop being a corporate sellout pussy and do it like the real extreme sports guys did.

The more badass someone is on the internet, the more of a pussy they are in real life.

You will bow down and not be the egocentric jackass to family. Guaranteed.

 

[AznAnarchy99]

Did you say the same thing about TiVo? Because, I can't name a single "DVR manufacturing", but I am damn sure most people don't have a TiVo.


And, if I had a nephew that was into extreme sports, I most certainly would get him a cheap camcorder and roll of duct tape. I'd tell him to stop being a corporate sellout pussy and do it like the real extreme sports guys did.

Kleenex
Band-Aid
Googling

 

[cubby1223]

kleenex
band-aid
googling

IBM
?

 

[blackdogdeek]

Kleenex
Band-Aid
Googling

Q-tip

 

[Stopsignhank]

8% down aint bad.
i thought it would be like 30% or more

Exactly. It sounds like the price was too high anyway.

As an indicator of increasing bearish sentiment on the company, more than 40% of GoPro stock had been shorted by September 15. That amounts to nearly 4.5 million shares. Citron Research tweeted yesterday that the stock price was detached from reality and that it was short-selling GoPro stock.
GoPro is currently trading at a forward price-to-earnings multiple of 102x, and a forward price-to-sales multiple of 8.2x. The stock has three Buy calls, along with seven Hold calls and one Sell call. The mean target price on the stock is $78.2.
GoPro is down over 8% in the first hour of trading today. The stock debuted on June 26 at $24.

 

[ultimatebob]

IBM
?

IBM doesn't even make PC's anymore. When I think of that brand now, I just think of overpriced IT consulting services

Something tells me that if you asked people to name three computer manfacturers now, their top three answers would be Apple, Dell, and HP in that order.

 

[andylawcc]

Q-tip

Xerox

 

[ultimatebob]

Q-tip

Or an iPad, as the Microsoft Surfaces that the NFL are using are being called

 

[rsbennett00]

With that many typos and grammar mistakes, is it even a legit source?

And when I think of helmet mounted camera, I think of the 4k panasonics people around here use, not the gopro. I've never even seen a gopro.