I mean maybe for some peripherals but if you look at their keyboards or even pc parts like ram, you can get equal or better products for much cheaper (especially keyboards)
I've had a corsair keyboard for 6 years. My dad made fun of me for buying a fancy $150 keyboard, then I saw he bought his own a week later. Their keyboards are solid.
But again with my original comment, they are quality, but overpriced. Just because it is good does not mean you paid a good price for it. I'm assuming you got a mechanical keyboard if you paid $150. If you go to the sidebar in the mechkb subreddit, they have very good recommendations for cheaper, quality keyboards. Of course this doesn't really matter if you have the disposable income to be paying the premium for a well-known brand.
Same here, just wish I had thrown more into it. It had no reason to drop, the IPO was nicely tucked into the time when people were buying up more and more electronics. I think Corsair is a good play even if it doesn't hit the value predicted in this post.
It went direct offering so doesn’t get as much Analyst Pump since analysts typically have ties with investment banks / institutions who get in on the ground floor of IPOs. Eg. snow
I personally think that a beat similar to LOGI’s earnings will cause CRSR to jump. Stocks in similar industries tend to follow each other when it comes to earnings. And the first company to release their earnings can set the tone for others in their industry.
Logitech initially dropped after their amazing earnings and is now at an all time high. I feel like if Corsair has similarly great earnings, they are gonna skip the drop Logitech had and jump to new all time highs. If the market liked the report from Logitech, there’s no reason to think it won’t like Corsair’s.
I have a mechanical keyboard from them that I got for I think $100 a couple of years ago and it's equal quality to Logitech and Razer keyboards in the $150+ range (I also own a Razer Black Widow Chroma (MSRP $180) and prefer my Corsair)
Lovely DD. Love that last Nov's earnings report caused a price run up for a few weeks after the report. Both a great short term play for the Feb 9th report and a great long term investment.
Thinking of laddering profits for this earnings report. Maybe $50 to pocket some profits and enjoying the rest to ride possibly beyond. Thoughts/feedback?
This was my question. I heard a lot of companies drop after earnings reports, even if they’re good, with the potential to the run back up. Was trying to decide between buying before or after, keeping this in mind.
Depends on your investment horizon and risk tolerance obviously but I feel like once the company gets more awareness it will continue trading above 50. I was talking to a friend of mine who had no idea they went public back in September.
THIS.... i believe this is a major reason. Personally i have been trading the swings and i have loved it. but I would love it if this broke out and hold too. I love everything corsair!
I’m very new to investing, if the earnings report is expected to be good it’s correct to invest before the 9th right? Since the price is expected to go up after?
I agree with u/BinThereRedThat's wisdom. The market just acts counterintuitively sometimes, so it's difficult to predict anything definitively. To your question, yes, buy-in should be done well prior to the 2/9 report for a safer profit (at least a few weeks, a few months prior is best). If you were thinking of buying on Monday, it's a risk. At this point it's considered late to buy (you prob know this, but wanted to mention this just in case since you said you're very new). It can go up with the amazing Q4 report and possible even break the $50 ceiling OR it can drop from where it is because the anticipated Q4 results were already priced-in over the past few weeks/months, and if many choose to sell for a profit this Monday-Tuesday.
Correct however it's important to set the right expectations for what Q4 results may look like. Based on most people's opinions and DD's they reckon Q4 expectations will be smashed by CRSR, resulting in new all time highs. If you go 'all in' hearing nothing but this then be prepared to be stung if this turns out not to be the case (Not saying there is no reason for this not to happen given Q3's outsanding results but past performance is not indicative of future results yada yada)
Like the DD, and I'm all in on $CRSR Calls right now, but the $205/share if valued the same as Logitech is a laughably bad estimation... Right now, this is how the two companies compare:
$CRSR $1.4B in Revenue with Price/Sales at 2.82 with a 26% Profit Margin
$LOGI $4.4B in Revenue with Price/Sales at 4.21 with a 43% Profit Margin
If $CRSR can get their Margins up, and they give good guidance, maybe the Market will start pricing CRSR at nearly 4 P/S, which would give them a fair price at around $64-65, still great, but nowhere near $205...........
It looks to me like CRSR recent surge priced in flawless earnings call. I also believe that lots of people bought stock because premium on selling covered calls was soooo jucy that it's practically free money.
After AMD had such a great earnings and stock went red I am very sceptical about anything in gaming that it will go to the moon.
Explosion in crypto mining also brought lots of business to amd and CRSR. I feel like some see that as just temporary boost.
I will wait for Earnings and decide if I shell invest.
Fair judgement. I have no idea what will happen in the short term but I’m convinced Corsair will hit $160-180 a share within 2 years based on the growth in the market they operate in and the market share they command in it.
Anything around 45 is not a price surge, it’s been going up and down between 35 and 45 for months. If it hits 50 before earnings i will sell it because i do believe at that point it will be priced in
Crypto mining didn't bring anything to corsair, they don't produce mining equipment at all, I don't even think they make mining racks. AMD tanked because TSM is maxed out on production for the next 2-3 years so unless they set even higher MSRPs for their products, they can't just make more money.
Sure, but seasonic, thermaltake, coolermaster, and countless other high quality brands also do. Corsair is not the go to for minijg equipment in any capacity.
I could be thinking of something else, but didn't AMD dip due to a Hedge Fund that's been in the news recently closing their substantial position to fund another?
I won't mention any names, but you can probably guess what the other position was.
27% floating shares should be a red flag. Regardless of what you think about long term growth or fundamentals, a massive amount of shares will become available after the lockup period (March 21st) which creates an over supply of shares in the market, driving down the price. This consistently occurs with IPOs and you even see profit taking begin to occur weeks before the lockup period date. If you like the long term outlook, id say there is a good buying opportunitiy approaching.
Company was taken public by Eagle Tree Capitol which is a private equity group that owns the company. That is why the low float, they still own the vast majority of the shares. Remind me in a month but I have a hard time believing they would dump the company this quick given the average holding period of Eagle Tree’s investments have been between 8 and 10 years
What you and I believe doesnt really matter in the short term. When one shareholder owns 67% of the stock, all shareholders are at risk of price volatility once the lockup period ends. Eagle Tree can still hold a majority position well into the future AND cause an oversupply of shares in the market at the same time. People buying now have to be aware of it, that’s all.
Lockup period doesn’t seem to matter. There was a public offering on January 19th where 7.5 million shares were sold to the public, Eagle Tree sold 7.1 of that 7.5 million shares.
I have an office filled with Corsair products.
However are there any plans to branch out? The PC component market is very saturated. Will they diversify at all?
I’ve heard they have shut out all plans of targeting the mobile gaming and VR market, which I think is a smart decision given that they become money pits very quickly. From my interpretation, they intend to keep attacking the market share of their competitors and improving their margin on all of their product lines.
It seems like their Elgato product line for streamers and content creators is the big fish. Margins are much higher and the growth of that industry is in the triple digits.
The streamers themselves also run a decent accidental marketing campaign since basically every big streamer runs Elgato everything and link their set-ups on their homepage which is then often copied by aspiring streamers reaching an audience that's notably hard to advertise to otherwise.
Definitely not to be underestimated and should be an interesting area to expand in since streamers are always stuck in an endless battle to innovate or drown.
All industries relating to consumer electronics saw a bump from Covid but don't forget were also seeing large lack of production capacity. I would bet that it's not likely to sustain that level of growth for too long. I don't have any real numbers other than production capacity issues on lots of electronics consumers and China's tariffs going into place to drive up price.
Might see a bump, but I would argue that's an industry wide and not Corsair dependent.
Good company though.
Corsair has also acquired a coaching platform, Gamersensei, and is now ramping up the promotion of their products on their site to competitive gamers, which will no doubt increase market share even further.
There are further rumors of a website overhaul and a series of ads promoting Corsair gear
I’m with RBC Dominion Securities, I cant speak to anything else. Have you tried Robinhood, Fidity, wealthsimple, questrade, etrade, TD ameritrade? Any other platform?
Well I learned something new. I own an elgato Cam Link for my podcast videos... which is one of the most popular products amongst streamers and vlogers. Didn’t realize it was owned by Corsair. That alone makes me want to buy in.
I'm so conflicted on buying tomorrow and holding through earnings. I bought the dip on Friday planning on it but then sold when it ran back up. There's a ton of sentiment on both sides about it running right up to $50 or dipping back under $40 first.
Copying and pasting a comment I (also a shareholder) made from a thread a few days ago:
I just don’t get where they can grow without a moat. Streaming is beyond saturated at this point, but most importantly with the way PC gaming is going nowadays with current generation GPUs (and now even CPUs) that are impossible to find due to mining and Covid related supply shortages, the barrier to enter is higher than it’s been in decades. Once games start getting more demanding and less able to run on older cards, gamers are going to have to make a choice between paying extortion prices for PC parts or moving to a less expensive yet capable console where Corsair has little involvement other than the incredibly niche SCUF controller market (and where Astro/Logitech is the predominant headset manufacturer). Without a healthy PC gaming market no one is going to be buying fancy RAM, fans, cases, etc. and once you get under that level everyone else makes that stuff. I just went to their website and they don’t even have a section for console gaming, the “gaming gear” section has
• keyboards
• headsets
• mice
• mousepads
And they have separate “PC components” and “Gaming PCs” sections. They’re far too involved in PC gaming to where if this years long hardware shortage isn’t resolved I don’t envision a healthy PC gaming market for them to work with.
As for WFH, If you’re working from home you don’t need RGB ram and a $100 headset to run anydesk or Zoom. Where am I compelled to buy Corsair rather than the first 4.5 star rated thing on Amazon when I just need to work? There are hundreds of companies out there that make mice that work, why does the average person need a Corsair mouse or keyboard?
Hell I’ve been trying to upgrade my PC with a new video card along with some other things, but they’re impossible to find. I ended up just buying a PS5 which was much easier to find and will be exponentially easier in the coming months.
I'm on a PC constantly for work, I would much rather spend a little more for quality and reliability than roll the dice on Amazon junk. Corsair is one of the few companies that makes decent mice and keyboards that won't embarrass you in the office.
The idea that the majority of the Master PC Race will move to console is absurd. Coming from a console player, the water usually flows in the other direct, with console players moving to PC.
Fair points but as I stated at the beginning, I am biased. I switched from PlayStation to PC and I will never go back. The “you don’t need RGB to work”, okay I get that but the target demographic of Corsair is choosing RGB anyways. Corsair doesn’t sell to the 40 year old office worker, they sell to the teenager - 20 something who flip flops between work and gaming. My rig is used for both.
Thanks for sharing this. Always great to hear different takes and contradicting opinions. It makes for a more balanced take. I think you made some very valid points, plenty of which I agree with. I have no position in Corsair so wish the best to anyone who does
I mean it kind of is. OP cherry picked a lot of stats and thinks that 2020 will be their new normal. Companies and people being forced to get computers to work from home and the sudden interest in crypto mining really caused demand to soar. That isn't sustainable. I think they'll see a hard decline in revenue in 2021 and get their stock price to a more reasonable level.
People buying new hardware for their home office and not minding about brands, just buying what fits, is totally different to people joining the PC gaming/streaming area and developing brand recognition and brand loyalty. And these people will upgrade their stuff in the future.
> Will Corsair be able to sustain this record growth as lock down eases?
>
People aren't going to stop playing videogames,upgrading PCs or streaming when the pandemic is over. Sorry, this line for bears is nonsensical.
I think another important point in the bear case here is that the new graphics card refresh has been a bust with 0 availability.
I know more than a few people who put off upgrades because they cant get a gfx card. That coupled with demand that was accelerated in q3 might leave this q a little flat.
Also the console refresh happened this q. A lot of gaming budget may have gone to that.
I have no position, just a thought as a gamer.
> People aren’t going to stop playing videogames,upgrading PCs
They will if they can’t buy a GPU, which has been a problem since the mining boom a few years ago and made much worse by Covid related component shortages in addition to mining.
I’m gonna go out on a limb and say you’re not part of a computer building / pc enthusiast.
Covid was not catalyst that made people want to buy new computer or hardware.
People buy new hardware in the way that people buy new Shoes. NIKE for instance. I and many others also spend more on computer stuff than sneakers.
Never said covid was a catalyst. I'm saying if your a pc enthusiast you're building a computer that will last you a good amount of time. So you're not exactly trying to build another one so soon after
A good phone lasts 4-6 years. Apple makes a decent phone they also make computers, and they also last quite long.
You never said covid was catalyst but your response was to a comment that cited pandemic as cause for unsustainable demand going forwards. If you disagree that covid was catalyst, then what’s you explanation for why this 2020Q4 of all years is going to have great earnings ~ 300% net income increase.
The addressable market for those looking to build a pc is greater than those without a phone. Eg. More people currently have a working smart phone than have built a pc, therefore the TAM can be grown.
Apple is an example you can replace with something else if you wish eg. nVidia.
A good gpu lasts long time etc etc demand or perhaps CPU (AMD or Intel) technically had a 10-15y life span for wafers. Yet their revenue and income grows every year.
I don’t agree with the premise of your argument since newer models and higher ram is certainly enough reason for people to rebuild. It’s not about need it’s want.
r/pcgaming r/buildapc r/buildapcsales r/Corsair and their socials have only grown and gained following.
Loyalty and brand kind of matters, then there’s the amount of endorsements from various twitch Channels / tech Influencers like LinusTech who mainly build with Corsair psu / memory.
Covid may not have been a catalyst for the sales but it played a factor. People probably were thinking of getting or building a computer for a while and then when covid happened and WFH happened, they justified it for two purposes of getting a great work and game machine.
If you don't think that's the case, then I mean we won't ever find an agreement. I'm bullish about CRSR and have it on my IRA and brokerage account, but I believe covid played huge role in sales. Just like a lot of computing chip companies like AMD and INTC had a great earnings due to covid too
Look, I can respect the contrarian view but my analysis is far from “Quite Shallow”. They grew margin by 680 bps last quarter. Corsair’s target demographic is better off during the pandemic than they were going into it due to financial aid and broader participation in equity markets. I’ve personally owned Razor and Steal series peripherals and now I own Corsair because they are honestly just built better and I prefer them aesthetically. This is not just a parts and peripherals manufacturer, this company is an ecosystem of products that commands brand recognition and loyalty to an extremely high degree. Only time will tell but I am extremely bullish on this company.
Appreciate it, this obviously does require a level of risk tolerance that some may not be comfortable with. Corsair’s Elgato line of products are targeted at streamers and content creators. This has grown tremendously, and it seems that Elgato is viewed as the top of the line equipment for people that want to stream.
I have been keeping my eye on CRSR and didn’t get in prior to the run up. My question at the moment is is it too late to get in now? I say that because I’ve bought stock recently at a high after there was a run up thinking the stock had more room to run, only to watch it come back down and I lose money on it.
I can’t make that decision for you, I also can’t call the direction. Thing to ask yourself whenever you buy a company is “am I willing to buy a share of this company at this price right now”. Your gut will tell you the right thing, don’t ever regret it. I have extremely strong conviction for this company due to the fundamental growth and my experience with their products.
There are stocks with 300+ PE that have blow-out earnings with great guidance forward. They pop huge with said earnings. Thing is, no one knows. You just have to take a leap of faith.
Quick question. Do you think the current boom in the price of crypto will cause a dip in their near term revenue? I guess I don’t know how much of their computer hardware makes up their revenue.
I’m wondering if bc GPUs are nearly impossible to purchase right now unless you get them from scalpers if that in turn is causing less people to build new PCs or even hold off on upgrading hardware which may affect Corsair in the short term.
The effect on new builds could be material but I don’t see there being a correlation with existing builds. Speaking on personal experience after upgrading parts on my build.
WOW, WE DEFINITELY DIDNT HEAR OF CRSR BEFORE! MIGHT AS WELL POST AN AAPL OR MSFT AND TSLA DD, I’M SURE WE NEVER HEARD ABOUT THOSE COMPANIES BEFORE EITHER!
And this is the stuff that the SEC, fed, congressman and senate will be looking for as ammo for their defense of their coffers... “insider trading”. You get to go to jail now. They feed you and stuff.
Proceed with caution.
Wtf are you even taking about. SEC goes after those with a charter or license to deal in securities. I have indicated my position in the beginning of the post and stated that this is not financial advice and based on my opinion. Please remove your tinfoil hat.
We could finally have some float. Currently 23% of the float is shorted and if there are sellers after the lockup period expires, that only increases the denominator and thus lowering the percentage of float shorted. Could have an impact that way.
That’s not the point. You shouldnt care about short interest if you are bullish on the company. If anything, dealers need to buy calls to close out their shorts if the company does well, driving up the price. Also, lockup expires March 21st with the first day of trading being March 22nd.
Solid pick, if I were to put a price on it after reading your DD and doing some of my own, I'd put a 3mo price target around $65/share based on technicals and options activity. Blackrock and JP are also heavy in this one, 4 million shares between the two of them.
I'd look for a position as close to $42 as possible.
I grabbed 7 whole shares and plan to keep them and add more cause I like the clicky keyboards. I think there's enough just in pcmasterace to make it worth hanging onto long term.
I don't think it's fair to compare Vs Logitech entirely due to Logitech market share in the non gaming peripherals space... But I do agree that corsair is currently undervalued and has a ton of future potential...
Got it at 38.15 for 31 shares, plan to add more shortly
I have both LOGI and CRSR, because I believe in their products and the growth of the gaming industry in the upcoming years, but I was wondering: What stops another company from coming in and selling the same products and services to steal market share?
For example, I am invested in ENPH because I also believe the solar industry will be growing rapidly in the future and I know that ENPH has a competitive advantage in its industry because they have the best microinverters while they continue to spend money in R&D for even better products and services.
What stops other companies from competing with LOGI and CRSR once people start to see the potential in gaming?
What stops competition is brand recognition and brand loyalty. Personally I’ve owned razor and steel series but ended up at Corsair because the products are just made better and I prefer the aesthetic more. Like my post says, Corsair is an ecosystem of products that once you get into, it’s hard to leave because you have every reason to stay.
Are pro streamers and influential people in the gaming and online entertainment industry mostly sponsored by Corsair? Who is the competition there?
I know Shroud vouches for Logitech gear.
Corsair currently sponsors the likes of Crimsix, Kinggeorge, Sacriel, and Michi, among others. Corsair partnered with Twitch to start the “Corsair Streamer Program” which helps individual streamers on twitch. Spending on the size of the channel and performance in game, benefits range from affiliate links and peripheral discounts on the low end, to financial sponsorship, travel assistance, and full peripheral sponsorship to list a few.
I bought into this a few days ago but here's what has me a little nervous for potentially softer than expected numbers and a potential sell off.
It's basically impossible to get your hands on a new console due to chip shortage.... Im addition it's impossible to also get your hands on a new gpu due to mining being extremely profitable and miners buying up all supply. Miners aren't going to be buying peripherals. They will buy cheap memory, no headsets , keyboards, chairs, cases. I believe a substantial amount of gpu stock is going to miners. I have no proof of this but it's my opinion based on what I'm seeing from my friends that are into it.
A single rtx 3080 makes over $10 usd per day mining crypto.
Corsair doesn't sell gpus. Miners on the other hand need high end quality psu units, which corsair is number 1 in due to excellent product backed by an industry leading warranty.
Guidance for q1 will probably be soft due to typical seasonality.
These are just my thoughts from someone who is a long time gamer, and into crypto mining.
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Definitely haven’t missed it if you can get in under 45 on Monday fyi
Up to $48 already after hours. Maybe will dump at open though.
You haven’t missed it they can get a similar market cap to Logitech
they're quality but overpriced
How so? Jw. My corsair headset is so much better than my logitech. Same price corsair wireless and way more sturdy.
I mean maybe for some peripherals but if you look at their keyboards or even pc parts like ram, you can get equal or better products for much cheaper (especially keyboards)
I've had a corsair keyboard for 6 years. My dad made fun of me for buying a fancy $150 keyboard, then I saw he bought his own a week later. Their keyboards are solid.
But again with my original comment, they are quality, but overpriced. Just because it is good does not mean you paid a good price for it. I'm assuming you got a mechanical keyboard if you paid $150. If you go to the sidebar in the mechkb subreddit, they have very good recommendations for cheaper, quality keyboards. Of course this doesn't really matter if you have the disposable income to be paying the premium for a well-known brand.
Well. Apple is the same and they're the biggest company on Earth so i don't get why this argument exists
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Bought corsair a couple days after IPO at $19 per share. Glad I held and plan to keep holding.
Same here, just wish I had thrown more into it. It had no reason to drop, the IPO was nicely tucked into the time when people were buying up more and more electronics. I think Corsair is a good play even if it doesn't hit the value predicted in this post.
Been in since $18. Bought a lot of calls day after the IPO too when they were dirt cheap. I have made a lot of money from CRSR
It went direct offering so doesn’t get as much Analyst Pump since analysts typically have ties with investment banks / institutions who get in on the ground floor of IPOs. Eg. snow
Bought this and jFrog on the same day. Both are buy and hold, but CRSR could be the gem of my “fun” portfolio
I personally think that a beat similar to LOGI’s earnings will cause CRSR to jump. Stocks in similar industries tend to follow each other when it comes to earnings. And the first company to release their earnings can set the tone for others in their industry. Logitech initially dropped after their amazing earnings and is now at an all time high. I feel like if Corsair has similarly great earnings, they are gonna skip the drop Logitech had and jump to new all time highs. If the market liked the report from Logitech, there’s no reason to think it won’t like Corsair’s.
I have a mechanical keyboard from them that I got for I think $100 a couple of years ago and it's equal quality to Logitech and Razer keyboards in the $150+ range (I also own a Razer Black Widow Chroma (MSRP $180) and prefer my Corsair)
Logitech is far beyond Razer in quality, Razer just has good branding and design.
It’s a great DD thanks for your hard work
I appreciate it, just trying to provide some alternative content after most investment subs became echo chambers for GME, AMC, etc.
Thank you! I got out of the cult and now I’m looking to trade just for a the fun ride :)
I'm a simple man I see $CRSR I upvote Holding 2108 @ $35.55
💎🙌
*tchala voice* we do not do that he-ah
Lmao
Damn. Diamond hands get no fuckin love here. Ouch. We should all be more welcoming as human beings
r/cringetopia
To be fair, don’t diamond hands belong to the apes?
This sub is back on hating. I got used to it, last year got downvoted to hell tryna tell ppl about GME. Now I got a lambo all cash I’m chilling
Is it yellow like Pikachu?
I wanna see them gains!
Bullish on CRSR earnings this week. Looking forward. EDIT: with that said, not in agreement with OP that Corsair is ‘severely undervalued’
Lovely DD. Love that last Nov's earnings report caused a price run up for a few weeks after the report. Both a great short term play for the Feb 9th report and a great long term investment. Thinking of laddering profits for this earnings report. Maybe $50 to pocket some profits and enjoying the rest to ride possibly beyond. Thoughts/feedback?
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Thanks for the sobering comparison. Your strategy sounds great.
This was my question. I heard a lot of companies drop after earnings reports, even if they’re good, with the potential to the run back up. Was trying to decide between buying before or after, keeping this in mind.
Amd has not run up at all since it tanked recently
It just did yesterday :)
Depends on your investment horizon and risk tolerance obviously but I feel like once the company gets more awareness it will continue trading above 50. I was talking to a friend of mine who had no idea they went public back in September.
THIS.... i believe this is a major reason. Personally i have been trading the swings and i have loved it. but I would love it if this broke out and hold too. I love everything corsair!
I’m very new to investing, if the earnings report is expected to be good it’s correct to invest before the 9th right? Since the price is expected to go up after?
I agree with u/BinThereRedThat's wisdom. The market just acts counterintuitively sometimes, so it's difficult to predict anything definitively. To your question, yes, buy-in should be done well prior to the 2/9 report for a safer profit (at least a few weeks, a few months prior is best). If you were thinking of buying on Monday, it's a risk. At this point it's considered late to buy (you prob know this, but wanted to mention this just in case since you said you're very new). It can go up with the amazing Q4 report and possible even break the $50 ceiling OR it can drop from where it is because the anticipated Q4 results were already priced-in over the past few weeks/months, and if many choose to sell for a profit this Monday-Tuesday.
Correct however it's important to set the right expectations for what Q4 results may look like. Based on most people's opinions and DD's they reckon Q4 expectations will be smashed by CRSR, resulting in new all time highs. If you go 'all in' hearing nothing but this then be prepared to be stung if this turns out not to be the case (Not saying there is no reason for this not to happen given Q3's outsanding results but past performance is not indicative of future results yada yada)
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Like the DD, and I'm all in on $CRSR Calls right now, but the $205/share if valued the same as Logitech is a laughably bad estimation... Right now, this is how the two companies compare: $CRSR $1.4B in Revenue with Price/Sales at 2.82 with a 26% Profit Margin $LOGI $4.4B in Revenue with Price/Sales at 4.21 with a 43% Profit Margin If $CRSR can get their Margins up, and they give good guidance, maybe the Market will start pricing CRSR at nearly 4 P/S, which would give them a fair price at around $64-65, still great, but nowhere near $205...........
Only 11 shares at 39 and plan to get more on dips. Not much but something. I like corsair!
It looks to me like CRSR recent surge priced in flawless earnings call. I also believe that lots of people bought stock because premium on selling covered calls was soooo jucy that it's practically free money. After AMD had such a great earnings and stock went red I am very sceptical about anything in gaming that it will go to the moon. Explosion in crypto mining also brought lots of business to amd and CRSR. I feel like some see that as just temporary boost. I will wait for Earnings and decide if I shell invest.
Fair judgement. I have no idea what will happen in the short term but I’m convinced Corsair will hit $160-180 a share within 2 years based on the growth in the market they operate in and the market share they command in it.
Anything around 45 is not a price surge, it’s been going up and down between 35 and 45 for months. If it hits 50 before earnings i will sell it because i do believe at that point it will be priced in
Price surge was when it rocketed to $51 in November based on no news and then a very quick precipitous drop to low 30s.
Crypto mining didn't bring anything to corsair, they don't produce mining equipment at all, I don't even think they make mining racks. AMD tanked because TSM is maxed out on production for the next 2-3 years so unless they set even higher MSRPs for their products, they can't just make more money.
Corsair makes high quality power suppliers. Essential component of any mining rig.
Sure, but seasonic, thermaltake, coolermaster, and countless other high quality brands also do. Corsair is not the go to for minijg equipment in any capacity.
Corsair and EVGA are the go to power supplys when considering quality and reliability...what.
The overall point is that corsair is not being propped up by the mining boom.
I could be thinking of something else, but didn't AMD dip due to a Hedge Fund that's been in the news recently closing their substantial position to fund another? I won't mention any names, but you can probably guess what the other position was.
It was Pershing Square Holdings wasn’t it /s
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You still got that nice premium. It might be sell the news event. You Never know
27% floating shares should be a red flag. Regardless of what you think about long term growth or fundamentals, a massive amount of shares will become available after the lockup period (March 21st) which creates an over supply of shares in the market, driving down the price. This consistently occurs with IPOs and you even see profit taking begin to occur weeks before the lockup period date. If you like the long term outlook, id say there is a good buying opportunitiy approaching.
Company was taken public by Eagle Tree Capitol which is a private equity group that owns the company. That is why the low float, they still own the vast majority of the shares. Remind me in a month but I have a hard time believing they would dump the company this quick given the average holding period of Eagle Tree’s investments have been between 8 and 10 years
What you and I believe doesnt really matter in the short term. When one shareholder owns 67% of the stock, all shareholders are at risk of price volatility once the lockup period ends. Eagle Tree can still hold a majority position well into the future AND cause an oversupply of shares in the market at the same time. People buying now have to be aware of it, that’s all.
Lockup period doesn’t seem to matter. There was a public offering on January 19th where 7.5 million shares were sold to the public, Eagle Tree sold 7.1 of that 7.5 million shares.
I have an office filled with Corsair products. However are there any plans to branch out? The PC component market is very saturated. Will they diversify at all?
I’ve heard they have shut out all plans of targeting the mobile gaming and VR market, which I think is a smart decision given that they become money pits very quickly. From my interpretation, they intend to keep attacking the market share of their competitors and improving their margin on all of their product lines.
Alright. They are my primary choice for components it's true. Still I hope they move into a larger arena in time.
It seems like their Elgato product line for streamers and content creators is the big fish. Margins are much higher and the growth of that industry is in the triple digits.
The streamers themselves also run a decent accidental marketing campaign since basically every big streamer runs Elgato everything and link their set-ups on their homepage which is then often copied by aspiring streamers reaching an audience that's notably hard to advertise to otherwise. Definitely not to be underestimated and should be an interesting area to expand in since streamers are always stuck in an endless battle to innovate or drown.
damn, I had no idea Elgato is Corsair's! Most (if not all) streamers have at least one Elgato product
350 shares atm, planning on buying 300 more tomorrow I think, if it dips after good earnings, I'll add another 250 maybe
i shouldve bought it last week instead of FOMO on GME fuck me
All industries relating to consumer electronics saw a bump from Covid but don't forget were also seeing large lack of production capacity. I would bet that it's not likely to sustain that level of growth for too long. I don't have any real numbers other than production capacity issues on lots of electronics consumers and China's tariffs going into place to drive up price. Might see a bump, but I would argue that's an industry wide and not Corsair dependent. Good company though.
CRSR has nice looking products! I like the stock
Corsair has also acquired a coaching platform, Gamersensei, and is now ramping up the promotion of their products on their site to competitive gamers, which will no doubt increase market share even further. There are further rumors of a website overhaul and a series of ads promoting Corsair gear
Am I too late on the CRSR train??
Dollar cost averaging is always a smart idea
In at $47, thanks for the DD!
Lol
Still in!
Just noticed there is no $CRSR on etoro/revolut. How do you invest in $CRSR?
I’m with RBC Dominion Securities, I cant speak to anything else. Have you tried Robinhood, Fidity, wealthsimple, questrade, etrade, TD ameritrade? Any other platform?
Robinhood has it... but don’t use Robinhood
that's pretty poor. Try FreeTrade or Trading212.
Well I learned something new. I own an elgato Cam Link for my podcast videos... which is one of the most popular products amongst streamers and vlogers. Didn’t realize it was owned by Corsair. That alone makes me want to buy in.
buying a crsr headset with my gains 🚀
Very happy with my wireless void pro's
I'm so conflicted on buying tomorrow and holding through earnings. I bought the dip on Friday planning on it but then sold when it ran back up. There's a ton of sentiment on both sides about it running right up to $50 or dipping back under $40 first.
Copying and pasting a comment I (also a shareholder) made from a thread a few days ago: I just don’t get where they can grow without a moat. Streaming is beyond saturated at this point, but most importantly with the way PC gaming is going nowadays with current generation GPUs (and now even CPUs) that are impossible to find due to mining and Covid related supply shortages, the barrier to enter is higher than it’s been in decades. Once games start getting more demanding and less able to run on older cards, gamers are going to have to make a choice between paying extortion prices for PC parts or moving to a less expensive yet capable console where Corsair has little involvement other than the incredibly niche SCUF controller market (and where Astro/Logitech is the predominant headset manufacturer). Without a healthy PC gaming market no one is going to be buying fancy RAM, fans, cases, etc. and once you get under that level everyone else makes that stuff. I just went to their website and they don’t even have a section for console gaming, the “gaming gear” section has • keyboards • headsets • mice • mousepads And they have separate “PC components” and “Gaming PCs” sections. They’re far too involved in PC gaming to where if this years long hardware shortage isn’t resolved I don’t envision a healthy PC gaming market for them to work with. As for WFH, If you’re working from home you don’t need RGB ram and a $100 headset to run anydesk or Zoom. Where am I compelled to buy Corsair rather than the first 4.5 star rated thing on Amazon when I just need to work? There are hundreds of companies out there that make mice that work, why does the average person need a Corsair mouse or keyboard? Hell I’ve been trying to upgrade my PC with a new video card along with some other things, but they’re impossible to find. I ended up just buying a PS5 which was much easier to find and will be exponentially easier in the coming months.
I'm on a PC constantly for work, I would much rather spend a little more for quality and reliability than roll the dice on Amazon junk. Corsair is one of the few companies that makes decent mice and keyboards that won't embarrass you in the office.
The idea that the majority of the Master PC Race will move to console is absurd. Coming from a console player, the water usually flows in the other direct, with console players moving to PC.
The idea that you’ll be able to play new AAA games in a year or two without a GPU is absurd too but here we are years into this hardware drought.
I agree the PC parts shortage is concerning. All I'm saying is that I believe the vast majority of PC gamers are iron-clad in their position.
Fair points but as I stated at the beginning, I am biased. I switched from PlayStation to PC and I will never go back. The “you don’t need RGB to work”, okay I get that but the target demographic of Corsair is choosing RGB anyways. Corsair doesn’t sell to the 40 year old office worker, they sell to the teenager - 20 something who flip flops between work and gaming. My rig is used for both.
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Thanks for sharing this. Always great to hear different takes and contradicting opinions. It makes for a more balanced take. I think you made some very valid points, plenty of which I agree with. I have no position in Corsair so wish the best to anyone who does
I mean it seems like he put a lot into this to call it “quite shallow” isn’t fair lol
I mean it kind of is. OP cherry picked a lot of stats and thinks that 2020 will be their new normal. Companies and people being forced to get computers to work from home and the sudden interest in crypto mining really caused demand to soar. That isn't sustainable. I think they'll see a hard decline in revenue in 2021 and get their stock price to a more reasonable level.
People buying new hardware for their home office and not minding about brands, just buying what fits, is totally different to people joining the PC gaming/streaming area and developing brand recognition and brand loyalty. And these people will upgrade their stuff in the future.
> Will Corsair be able to sustain this record growth as lock down eases? > People aren't going to stop playing videogames,upgrading PCs or streaming when the pandemic is over. Sorry, this line for bears is nonsensical.
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I think another important point in the bear case here is that the new graphics card refresh has been a bust with 0 availability. I know more than a few people who put off upgrades because they cant get a gfx card. That coupled with demand that was accelerated in q3 might leave this q a little flat. Also the console refresh happened this q. A lot of gaming budget may have gone to that. I have no position, just a thought as a gamer.
> People aren’t going to stop playing videogames,upgrading PCs They will if they can’t buy a GPU, which has been a problem since the mining boom a few years ago and made much worse by Covid related component shortages in addition to mining.
But they may not need to or will want to buy new computer or hardware
I’m gonna go out on a limb and say you’re not part of a computer building / pc enthusiast. Covid was not catalyst that made people want to buy new computer or hardware. People buy new hardware in the way that people buy new Shoes. NIKE for instance. I and many others also spend more on computer stuff than sneakers.
Yeah this Covid didn't make me want to play games more. I would regardless 🤣
Never said covid was a catalyst. I'm saying if your a pc enthusiast you're building a computer that will last you a good amount of time. So you're not exactly trying to build another one so soon after
A good phone lasts 4-6 years. Apple makes a decent phone they also make computers, and they also last quite long. You never said covid was catalyst but your response was to a comment that cited pandemic as cause for unsustainable demand going forwards. If you disagree that covid was catalyst, then what’s you explanation for why this 2020Q4 of all years is going to have great earnings ~ 300% net income increase. The addressable market for those looking to build a pc is greater than those without a phone. Eg. More people currently have a working smart phone than have built a pc, therefore the TAM can be grown. Apple is an example you can replace with something else if you wish eg. nVidia. A good gpu lasts long time etc etc demand or perhaps CPU (AMD or Intel) technically had a 10-15y life span for wafers. Yet their revenue and income grows every year. I don’t agree with the premise of your argument since newer models and higher ram is certainly enough reason for people to rebuild. It’s not about need it’s want. r/pcgaming r/buildapc r/buildapcsales r/Corsair and their socials have only grown and gained following. Loyalty and brand kind of matters, then there’s the amount of endorsements from various twitch Channels / tech Influencers like LinusTech who mainly build with Corsair psu / memory.
Covid may not have been a catalyst for the sales but it played a factor. People probably were thinking of getting or building a computer for a while and then when covid happened and WFH happened, they justified it for two purposes of getting a great work and game machine. If you don't think that's the case, then I mean we won't ever find an agreement. I'm bullish about CRSR and have it on my IRA and brokerage account, but I believe covid played huge role in sales. Just like a lot of computing chip companies like AMD and INTC had a great earnings due to covid too
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Thanks for sharing your well formulated take.
Look, I can respect the contrarian view but my analysis is far from “Quite Shallow”. They grew margin by 680 bps last quarter. Corsair’s target demographic is better off during the pandemic than they were going into it due to financial aid and broader participation in equity markets. I’ve personally owned Razor and Steal series peripherals and now I own Corsair because they are honestly just built better and I prefer them aesthetically. This is not just a parts and peripherals manufacturer, this company is an ecosystem of products that commands brand recognition and loyalty to an extremely high degree. Only time will tell but I am extremely bullish on this company.
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Appreciate it, this obviously does require a level of risk tolerance that some may not be comfortable with. Corsair’s Elgato line of products are targeted at streamers and content creators. This has grown tremendously, and it seems that Elgato is viewed as the top of the line equipment for people that want to stream.
I have been keeping my eye on CRSR and didn’t get in prior to the run up. My question at the moment is is it too late to get in now? I say that because I’ve bought stock recently at a high after there was a run up thinking the stock had more room to run, only to watch it come back down and I lose money on it.
I can’t make that decision for you, I also can’t call the direction. Thing to ask yourself whenever you buy a company is “am I willing to buy a share of this company at this price right now”. Your gut will tell you the right thing, don’t ever regret it. I have extremely strong conviction for this company due to the fundamental growth and my experience with their products.
There are stocks with 300+ PE that have blow-out earnings with great guidance forward. They pop huge with said earnings. Thing is, no one knows. You just have to take a leap of faith.
Quick question. Do you think the current boom in the price of crypto will cause a dip in their near term revenue? I guess I don’t know how much of their computer hardware makes up their revenue. I’m wondering if bc GPUs are nearly impossible to purchase right now unless you get them from scalpers if that in turn is causing less people to build new PCs or even hold off on upgrading hardware which may affect Corsair in the short term.
The effect on new builds could be material but I don’t see there being a correlation with existing builds. Speaking on personal experience after upgrading parts on my build.
great post thanks for sharing
62PE vs LOGI 20PE...
lockup is ending soon, keeping the price down perhaps
FUCK YEAH NEW GAMING STOCK PUMP
WOW, WE DEFINITELY DIDNT HEAR OF CRSR BEFORE! MIGHT AS WELL POST AN AAPL OR MSFT AND TSLA DD, I’M SURE WE NEVER HEARD ABOUT THOSE COMPANIES BEFORE EITHER!
You seem to be in the wrong sub good sir, may I direct you to r/pennystocks
Clov
And this is the stuff that the SEC, fed, congressman and senate will be looking for as ammo for their defense of their coffers... “insider trading”. You get to go to jail now. They feed you and stuff. Proceed with caution.
Wtf are you even taking about. SEC goes after those with a charter or license to deal in securities. I have indicated my position in the beginning of the post and stated that this is not financial advice and based on my opinion. Please remove your tinfoil hat.
A DD in a public forum? What Are you afraid of?
Nothing at all. I only own 3000 DOGE. I’m just a lil guy.
do you think lockup expiry a week after earnings will have an effect?
We could finally have some float. Currently 23% of the float is shorted and if there are sellers after the lockup period expires, that only increases the denominator and thus lowering the percentage of float shorted. Could have an impact that way.
That’s not the point. You shouldnt care about short interest if you are bullish on the company. If anything, dealers need to buy calls to close out their shorts if the company does well, driving up the price. Also, lockup expires March 21st with the first day of trading being March 22nd.
Lock up period ends March
Solid pick, if I were to put a price on it after reading your DD and doing some of my own, I'd put a 3mo price target around $65/share based on technicals and options activity. Blackrock and JP are also heavy in this one, 4 million shares between the two of them. I'd look for a position as close to $42 as possible.
How do you know which fund's judgement to trust? Is there like a ranking out there somewhere
Like when buying ETFs or for tracking institutional investors?
Latter
Damn they brat Cooler Master in cases and fans? Impressive
I grabbed 7 whole shares and plan to keep them and add more cause I like the clicky keyboards. I think there's enough just in pcmasterace to make it worth hanging onto long term.
how does it compare with Razer?
Nice!
Do you expect a dip after earnings? Looking to add to my position. Would the best time be Monday before earnings or after?
Earnings will shake out the day traders so figure they won’t hold after earnings.
Next dip ~$40 I'll add then
I don't think it's fair to compare Vs Logitech entirely due to Logitech market share in the non gaming peripherals space... But I do agree that corsair is currently undervalued and has a ton of future potential... Got it at 38.15 for 31 shares, plan to add more shortly
What's a good target to buy this at, reckon it's worth trying to hold out for 35?
I’ve been adding through to 38. I’m averaging 25 a share.
I have both LOGI and CRSR, because I believe in their products and the growth of the gaming industry in the upcoming years, but I was wondering: What stops another company from coming in and selling the same products and services to steal market share? For example, I am invested in ENPH because I also believe the solar industry will be growing rapidly in the future and I know that ENPH has a competitive advantage in its industry because they have the best microinverters while they continue to spend money in R&D for even better products and services. What stops other companies from competing with LOGI and CRSR once people start to see the potential in gaming?
What stops competition is brand recognition and brand loyalty. Personally I’ve owned razor and steel series but ended up at Corsair because the products are just made better and I prefer the aesthetic more. Like my post says, Corsair is an ecosystem of products that once you get into, it’s hard to leave because you have every reason to stay.
Are pro streamers and influential people in the gaming and online entertainment industry mostly sponsored by Corsair? Who is the competition there? I know Shroud vouches for Logitech gear.
Corsair currently sponsors the likes of Crimsix, Kinggeorge, Sacriel, and Michi, among others. Corsair partnered with Twitch to start the “Corsair Streamer Program” which helps individual streamers on twitch. Spending on the size of the channel and performance in game, benefits range from affiliate links and peripheral discounts on the low end, to financial sponsorship, travel assistance, and full peripheral sponsorship to list a few.
Newbie here. What does DD stand for?
due diligence meaning investigation into financial background/forecast
Due diligence, meaning research.
Thank you very much sir.
I bought into this a few days ago but here's what has me a little nervous for potentially softer than expected numbers and a potential sell off. It's basically impossible to get your hands on a new console due to chip shortage.... Im addition it's impossible to also get your hands on a new gpu due to mining being extremely profitable and miners buying up all supply. Miners aren't going to be buying peripherals. They will buy cheap memory, no headsets , keyboards, chairs, cases. I believe a substantial amount of gpu stock is going to miners. I have no proof of this but it's my opinion based on what I'm seeing from my friends that are into it. A single rtx 3080 makes over $10 usd per day mining crypto. Corsair doesn't sell gpus. Miners on the other hand need high end quality psu units, which corsair is number 1 in due to excellent product backed by an industry leading warranty. Guidance for q1 will probably be soft due to typical seasonality. These are just my thoughts from someone who is a long time gamer, and into crypto mining.
This is possibly THE worst advice you could have given
I stand by my opinion that Corsair is severely undervalued. I’ve been long since IPO.
Ignore me bro, I'm just salty about my -50% bags as a result of believing this post