Stocks to Watch - GOPRO INC

Gopro is a public company producing consumer electronics. The company belongs to the hardware industry and the technology sector. Gopro manufactures mountable and wearable cameras and was incorporated in California during the year 2004. The company has developed an app called the Gopro app which enables customers to capture, manage, share and enjoy captivating content. The Gropro App also facilitates sharing of photos and videos directly to social networks and content platforms Facebook, Instagram, Twitter and You Tube. These features have enabled a substantial market for the product. Gopro has markets in around 100 countries with 25000 retailers. Gropro’s competitors include Canon, Polaris, Nikon, Olympus, Panasonic, Samsung, Sony and Toshiba. The company website is http://gopro.com/.

An overview of the company’s financials: The enterprise has a market cap of $5.59 billion. The company had grown rapidly during the last two quarters of the financial year 2014 in terms of revenue and operating margin. This trend is expected to continue in the current financial year.

The current ratio of the enterprise was 1.41 during the last two quarters of 2014 and is now 3.18. Its quick ratio was 0.82 during the last two quarters of 2014 and is now 2.34 .The gross margin was 40.13% during the last two quarters of 2014 and is now 44.99. The operating margin was 6.75% during the last two quarters of 2014 and is now 13.42. The share price was between $55.00 and $59.00 during the last two quarters of 2014 and is now $45.

The earnings per share is presently 0.92% which compares less with its competitors. The price earnings ratio of 48.08 is more than that of its competitors. However, the share prices is expected to rise by as much as 33% because of profit earnings. The stock is expected to outperform in its fair value in the near future. This could probably be a reflection of the 2.5x growth in revenue earnings projected for the current financial year. 

Some Short Term Stock Picks

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BANK OF INDIA: The Bank of India has an operating profit of Rs 7459 crores during the year end March 2014 and a net profit of Rs 2749 crores which was 2.67% more than the previous years. The return on assets is 0.65% and the return on equity is 13.62%. One of India's largest and most reputed banks the BOI has taken a number of initiatives aimed to meet the nationally mandated government goals. As part of their corporate social responsibilities, the bank has taken the following initiatives:

• Adult Literacy Programs
• University and Academic activities
• Village development program

Due to the consistent financial performance and good administration it is recommended to buy the stock for a short term for a price range of Rs 285/-- Rs 295/- and wait for the price to reach around Rs 310/- to Rs 315/-. The stop loss can be maintained at Rs 270/-.

HINDUSTAN ZINC LTD;: The company produces Zinc and Lead Mined Metals and Bulk Mined metal. The total revenue earned during year ending March 2014 was Rs 15,535 crores, an increase of 5.7 % over the previous year. The company reported a record profit of Rs 6,905 crore for the year. Due to its continued growth and good financial performance, it is recommended to buy the stock for the short term at the price range of Rs 160/-  to  Rs 170/- until it reaches a target of Rs 180/-. A stop loss may be maintained at Rs 155/-

TRUECAR INC: Truecar obtains market-based pricing data on new and used cars and was incorporated in Delaware during the year 2005. The company has a network of over 7000 truecar certified dealers as well as independent dealers representing all makes of cars. True car dealers operate in all 50 States and the District of Columbia.
The company  financials has a current ratio of 4.85 and a quick ratio of 4.53 .The gross margin is 90.87% and the operating margin being -20.99% .The share price is being  between $ 21.00 and $25.00. The company's shares are expected to perform well in the coming future especially because of manufacturer incentives to targeted customers of insurance affinity partners.