As you likely know, the US stock market has had a stiff decline the last couple of days, with the Dow Jones Industrial Average down 1,100 points – not a small amount!
Well, if you have conviction and a long term investing horizon, retracements like this can be a good time to add to positions you like.
I am currently adding to my GoPro position – GoPro has really done poorly over the holiday season the last two years, running out of inventory and missing expectations. They have recently launched a new action cam and appear ready to not repeat the mistakes of the last two holiday seasons. Given this, as well as the cheapness of the stock by many metrics (Ex: Price/Sales ratio of 0.75 when the S&P average is 1.5, making it significantly undervalued), I think the stock is poised for a beat and a run. I feel GoPro is a $20 stock, so buying at $6 feels like a deal to me.
Of course, you should always do your own due diligence and make your own investment decisions. I am not a professional, so I am just sharing what I am doing at the moment.
In general, most of my stock market exposure is through ETFs and Mutual Funds, but I do like to invest in some individual issuers to make investing more entertaining. I thought I would share a little bit with you today!
Take care my friends,
Brian
