Intelligent post. While I don't really know the answer to your question, I would venture a guess that since CEO (likely advised by his banker and accountants) chose to expedite the removal of lockup restrictions by a few months and cited calendar year 2014 tax planning as reason, this would strongly suggest that both actions - (1) gifting to charity and (2) removal of restrictions - is necessary for tax authorities to deem it as a sale for calendar year 2014. And I agree, the action today suggest that the CEO has been advised by his bankers that this stock is good level to get rid of now.
good points. GPRO will remain very volatile with hype on holiday sales going full tilt being met by avalanche of shares for trading....I say sell on rallies but might see another drive towards 90s to get all the suckers in before this flops down to 40's.
dream on, undoing what they did today after the shares whipsawed like this will feed the legal sharks even more ammunition to sue the company for the mess. And the fact is, tomorrow the shares are unrestricted - no time left. The charity could elect voluntarily not to sell but they aren't going to promise that in writing..guarantee you that...so the market is left believing worst case scenario - that the charity will sell. It is the only reasonable conclusion to make.
this could get real ugly...then again, this will probably be in the 50's before the actual lockup expires.
true dat. So many competitors, all they need is someone with a personality to present their cameras..it is all marketing gimmick. Woodman got the spotlight for the time being and CNBC is pumping him 24/7.
everybody who is relevant in the market already expect these shares will be sold in the market starting tomorrow regardless of what the foundation says. They also know the timing of the announcement, suggesting the CEO believes the high is in the stock and he needs to move on it because come Dec. 140 million shares will be unlocked....don't be surprised to see 40's.
They were charitable from the start. You figure they could have done the IPO deal $50 higher at $75 instead of $25. Now it is time for them to make that up on the secondary placement. It is going to happen.
no, CNBC reporter promised they won't sell...they promise. The reporter said it like 100 times in the past 30 minutes...you have to trust her..
yeah, sure you know when the shares are sold or not...yeah, you are their broker right? lol....what a tool.
and GPRO mgmt would be doing the right thing, to raise money at these insane levels that they missed out on the IPO. JPM helps the CEO gets shares released and now JPM gets their second round. You help me, I help you.
lol....she said the shares are available, but they promise not to sell so soon...believe us... translation: let the foundation sell first before you dump it at much lower prices.
just coincidence? or Woodman is a slick marketer and an even better trader.
well, technically the foundation must ask for permission to early termination of the restrictions, which was granted by JPM. Who can blame Woodman for trying to get out at the top?
you might know more about share count than me...so unless this 60 million shares you speak of is newly created shares, then the mkt cap is about 13 billion (counting stock options). Again, you could be right and if that is the case, that is very bearish for the stock.
you might want to ask why the foundation is asking for an EARLY release from restrictions. Me thinks they think the top is in and want to sell over the next few weeks. And mind you, the investment guideline of a charitable trust is typically conservative and the fiduciary actions is typically biased towards conservative investment directives, hence owning too much GoPro casino stock is clearly a no-no, even if his name is Woodman.
if yahoo data is correct then Sony is still like 6 to 8 billion more in mkt cap...which isn't much of a lead considering how GPRO jumps. A one product company is going to be worth more than a multi-media company with decades of technology and experience. Go figure. But until someone from one of GoPro's competitors go on CNBC or some business channel and tout their action camera, GoPro is going to be on the spotlight. All marketing....
the fact that it mentioned lockup restriction is lifted means the trust can sell. Whether they will sell immediately no one knows, but the fact is that this weighs on speculators' mind that all these shares will become available....if it cascades down, the exit door just got more tighter.
nice catch of a story. A charitable organization isn't about to hold on to such a volatile stock and given the put options are so expensive, it is very likely they will sell the shares instead of hedging. So the float will jump quite a bit, that is bearish for the stock.