Corsair gaming is probably the most interesting play in the whole stock market right now.
#corsairgaming #corsairstock #corsair
Remember guys, gaming is the past, present, AND definitely the future.
The gaming industry was red hot in terms of growth before the pandemic which was only accelerated permanently with the pandemic.
The corsair stock has solid fundamentals and financials. It's extremely undervalued WITH tremendous growth potential.
The global gaming market is currently valued at $176B.
It's expected to reach almost $300B in the next 5 years, making this one of the fastest-growing markets out there with a CAGR of 10%.
Let's get into the 8 facts that are going to blow your mind!
1. Total outstanding shares is around 92.19m x $29.52 = 2.72b market cap
2. Three analysts set a price target with an average of $50
3. Corsair Ended 2020 with $170m cash flow from operations. i.e They're No longer losing money
4. They experienced a 25.7% annual compounded growth rate from 2017 to 2020
5. Corsair made a $35 public offering in January 2021. The current price is only $29.52
6. Corsair Gaming Smashed past 3 earnings estimates
7. 1.7b revenue in 2020 to a market cap of $2.72b represents a 1:1.6 revenue to market cap ratio. The averages s&p 500 price to sales ratio is 3.17
8. The guidance for 2021 guidance increase from $1.8b to $1.95b
Well, there are two main reasons why corsair stock is currently falling.
First, we have the Eagle Tree situation. It's a big fund that is constantly unloading shares of this company. EagleTree Capital owns a majority stake in Corsair Gaming.
In July of 2017, it acquired a majority share in a deal valuing Corsair Gaming at $525M. This put EagleTree Capital at ~92% ownership holding 77.8 million shares, at a price of ~$6.20 per share.
Corsair stock today trades at about $30, and of course, if you bought it $6, you would sell some at $30
Take note Eagle Tree is an early-stage investor and maybe they want to move that money to some of the new early-stage companies they have identified. Because that's what they do.
It does not matter. They still want to be a majority shareholder of corsair so they are not unloading all the shares. But even when they sell a small portion of their holding, due to the low float, it prevents the price of the stock from going up.
The second reason why corsair stock is not going up is that many investors think that this is a stay at home play.
Most people outside the world of gaming severely underestimate how big of a driving force E-Sports is and will become globally.
Not to mention AV/VR and streaming.
With other stimuli such as 5G and cloud tech establishing a whole new capable infrastructure, gaming is about to be launched into a growth phase like never seen before!
Think about its this way. Why would Netflix get into gaming if it was a dying industry?
new gamers are born every day, new streamers are born every day. old gamers are getting better gear, upgrading every few years.
The pandemic just helped create new gamers. They will want to buy more and more gear. they will want to start streaming like their favourite streamers.
It's only a matter of time before big money starts buying corsair stock. I'm using this opportunity to build a sizeable position and hold this for the next 3-5 years.
DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. You must conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional before making an investment.
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