crsr stock price will bottom @ this

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Well howdy there folks and welcome into today’s video i hope you guys are doing great as always out there so it was just a few days ago i put out a video and a lot of you guys enjoyed it and that video went into tattoo chef and when i thought that stock is gonna bottom and the price i thought i was gonna bottom at and so i said let’s do one of these videos

Today on corsair gaming crsr and let me give my opinion on when this stock will bottom exactly what price specifically am i looking at for this stock to bottom as in like start going down and what are the odds of probabilities that i think are is going to happen here right because you gotta understand when it comes to stock market everything’s an odds game

Right everything is possible it’s possible corsair goes to i don’t know zero dollars is possible corsair goes to uh ten thousand dollars a share right uh both extremely unrealistic but they are possible so here today i’m gonna slap some probabilities on some of these price targets that i’ve seen thrown out there in regards to corsair gaming recently and what

It would take for the stock to hit those specific prices today obviously this stock is uh 26.28 it was down about 2 percent looking at a 2.46 billion dollar market cap for corsair now the four prices we’re going to talk about here today we’re going to talk about 26 that’s the number i’ve seen thrown out there and it’s basically right around 26 right now okay a

Lot of folks saying it’s a bottom at 24. a lot of folks i’m seeing uh predictions around 18 and then 15 those are by far and away the four most popular price targets i’ve seen out there okay and so we’ll run through a 15 scenario what would it take for that to happen what are the chances that happens we’ll take it through 18 and then we’ll combine these 24 to

26 dollar range what’s the chances that would happen what do i believe and also what am i looking at for this stock so hope you guys enjoy this video i hope you get some good value out of it as always here today all i ask in return is that you smash that like button that is literally it if you want to learn everything that is possibly in my brain if you want to

Download it directly to your brain check out the first pin comment down there that will basically be to apply for the private stock group in private discord chat alrighty guys let’s get into this so first off if anybody’s watching this video who doesn’t know corsair gaming company gaming gear streaming gear pc components gaming pcs software they’re huge in that

Space they also own a company named elgato which is massive in the streaming space those are two main businesses okay then they own origin scuff gaming which should likely benefit in a massive way because this is a custom controller company uh some people might not even know that’s a thing uh custom controllers and guess what new consoles have started coming out

And be released uh very recently around ps uh playstation and then also xbox as well so scuffed gaming should definitely benefit from that and then they also in gamer sense size so they’re massive in the gaming and streaming space if you’re in any of those two spaces or a few spaces like you you know them okay also to recap here this company’s been trading at

A 16 trailing p e a 15 for p a price to sales ratio of 1.25 on corsair gaming as far as last year the company did a dollar 60 of eps expect to do a dollar 79 of earnings per share in 2021 which is obviously a good sign you want to see earnings per share getting going up and then next year 2022 analysts on average there’s eight of them expect the company to do

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A dollar 91 of eps earnings per share the the most bearish analyst has their eps going down to a dollar fifty seven the most bullish one has them doing two dollars and sixteen cents but the average is a dollar ninety one there as far as revenue growth for current year nineteen point nine percent expected current year for the company next year only expect to do

5.4 revenue growth there now also keep in mind the company just reported their quarterly results about a week ago or so maybe two weeks ago now and uh essentially they grew revenues 24 year over year so they’re they’re growing much faster recently than obviously what’s expected for total year and next year as well so it just kind of gives you some context that

At least that the trend is is pretty positive for corsair gaming in regards to if you’re thinking for them to potentially beat this number in this number okay also dude keep in mind nvidia just came out with with results about an hour ago i looked at those nvidia results and nvidia is huge in gaming obviously and their gaming numbers were incredibly strong for

Nvidia really good news as well there okay so let’s get into these scenarios okay so 15 let’s talk about 15 well if this stock was to go to 15 here’s what would need to happen all right revenues would need to start going down okay like next quarter revenue down and then them projecting revenue down if the revenue started going down for this company versus uh

You know obviously 19 plus percent growth expected this year five percent plus expected next year if also something like yeah no we’re not growing now our revenues are going negative yes that would absolutely hurt the stock in a massive way it would also need the cost to rise substantially more so there’s been a if you’re looking at a negative short-term thing

That’s happening for corsair gaming it’s the cost of the business and it’s not corsair’s fault at all in this situation it’s just essentially guys you know they even talked about this on on the conference call okay just the price to get a container a shipping container is like three or four x what it was two years ago that is completely unsustainable that is you

Know obviously supply chains have been messed up because of ronnie roane over the past 18 months stuff like that is completely unsustainable a lot of hedge funds have been you know buying up shares of those container companies and stuff like that and the shipping companies because they’re making money hand over fists but that is a short term headwind for the

Company it’s going to likely remove itself and then become a tailwind for the company and actually help profitability in a massive way when all sudden all of a sudden all the you know those prices are cheaper and cheaper for shipping transportation everything in general right but for right now it’s a headwind and if also those costs you know boomed even more and

Also the companies even less profitable because everything’s eaten into their business that would obviously be a big more negative for the stock if you had revenues going down and cost of running the business to go up substantially more yes i can definitely see 15 dollars being being out there okay and then simultaneously which would kind of run hand in hand

With all this if gaming streaming got really really weak obviously you know forever going down that would be because also like people don’t care about gaming and streaming anymore right and so if that whole situation played out which i think is extremely unlikely but if it played out there’s no doubt this stock could go from 26 dollars to 15 i would put that

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At about one to two percent probability right now i do not think it’s very likely that revenues go negative for this company and they start shrinking revenues i do not think it is uh very realistic for the costs you know substantially rise more for this business i think uh you know the cost around the business are going to start to slow in a major way and maybe

Even go the other way where the company starts benefiting in that tailwind and uh gaming streaming i think will continue to be strong for as long as i can see like you know for at least this decade let’s put it that way so i put a extremely low probability of one to two percent chance that this stock was to bottom at fifteen dollars a share okay by the way real

Quick here it’s always good news if i’m going to make a video like i’m making here today in regards to talking about a stock bottoming you got to know your you’re rather close to bottoming if i’m even going to you know entertain the idea of talking about a stock and potentially bottoming or something like that in regards to some of these stocks okay let’s talk

About 18 dollars what would it take for this stock to go to all the way down eighteen dollars would be another eight dollars off this share price okay well revenues don’t need to go negative but the revenues would have to grow much less than expected so for example analysts expect the company to grow revenues 19 if also the companies like i think we’re only

Going to do 12 percent revenue growth yeah that would be really bad for this stock right if also you know analysts on average have them grown five point four percent which i think is an extremely conservative number for next year if also the companies like yeah i think we’re only going to grow like two percent or three percent next year that would obviously be

A very very negative thing for the company okay so the 18 scenario it doesn’t mean they have to go negative it’s just like oh yeah we’re not going to grow nearly as much as the analyst community and investors think that would be a very very bad thing for stock also you you would need to see net income expect it to go down in 2022 we’re also an analyst and the

Company itself is like yeah i think our net income is actually going to be negative in 2022. if that were to happen yes absolutely i could see the stock fall into 18 a share that i mean everybody as of right now expects net income to grow next year including myself and if all of a sudden you’re you’re taken by you know also analysts are like nah it’s going to

Be negative and like all on average are saying negative and then the company comes out and they’re like yeah i think net income is going to be down in 2022 because of the cost and let’s say revenues aren’t is expected to grow much yes absolutely that would be a very very negative thing we would likely see a bigger sell-off in the stock price all the way down to

18 right now in terms of this probability where revenue growth is way slower than expected and net income also goes down i would put that at about a ten percent probability so it’s a it’s a possibility as all things are um i do not think it’s super likely which is why i’m putting a 10 chance however it is a chance and obviously this is why i never go all in a

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Stock and i always keep some money around because just in case some scenario like that were to happen obviously i would be ready to buy more and more shares okay so that’s 18 all right next up here let’s get into this scenario where the stock goes to 24 to 26 dollars a share now just keep in mind that stock’s 26.28 so it’s almost right there as of right now

Right this is by far the most probable scenario for me the stock will bottom in this range as long as there’s no super bad news as long as there’s no super bad news this is where the stock will bottom in my opinion like 80 to 90 percent probability we just can’t have any really really bad news in relation to the stock now you say what if the whole stock market

Sells off more russell stocks and a lot of these small caps have already been hit so hard i don’t think these ones would be the ones to fall nearly as much and usually in a big stock market sell-off i might have to make a whole dedicated video to this but usually in a big stock market sell-off the small caps get hit the hardest i don’t see that playing out at all

If you were to talk about like a scenario where the whole markets fall okay i definitely see things being a little different in this scenario because the small caps have already been devastated so bad okay and so this is an 80 to 90 percent probability that i think the stock’s gonna bottom somewhere around essentially where it is now just go maybe a little bit

Lower and then start to make its move up okay and so that’s corsair gaming now as far as me this is my number one stock i want to be very very clear this is my number one stock i am most interested in for call options there’s no doubt about it like if this stock continues around the range it’s at now or goes down and those call options are out it’s my number one

Stock i’m most interested in so in september i would say there’s an extremely high probability i buy some 2024 call options in regards to corsair maybe even in october as well i might buy a chunk in september buy another chunk in october and maybe even the last chunk in november it’s going to depend upon where the the shares are trading at and also what are the

Premiums option uh sellers want out there and things like that adoption sellers want some crazy numbers i won’t pay it right but as long as it’s uh you know somewhat realistic what the the option sellers are this is my number one stock i’m most interested in especially if the stock stays around where it is so yeah that’s corsair gaming i hope you guys enjoyed a

Video like this let me know if there’s any other future stocks you want me to do obviously i did tattoo chef corsair gaming more than happy to do that for you guys if you want to download everything i possibly know about stock picking make money from stocks running portfolios things like that you want to download it all from my brain to your brain check out the

Pin comment down there and uh hopefully someday you can get in the six figure seven figure or maybe even eight figure club i gotta get that eight figure club up and rolling much love as always guys and have a great day

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crsr stock price will bottom @ this By Financial Education

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