See previous blog. We had $12 or so as an ideal low but did not necessarily expect it to get their. Of course it did. Now we have a near perfect A-B-C. I saw a dog walking in the woods the other day with one of these cameras mounted on its back. 2 hours of film if you put a big enough memory card in it. These things should not cost $400. At $100 everybody will own one so their is potential. In our opinion this is a buy here (unless it goes lower).

We thought that a couple of dollars under $20 might suffice. It did not. Monday the stock made a new low at $16.50. From roughly $100 that is a loss of 84%, without using a calculator.

This is an A-B-C down. Often the A and C legs are equal as vectors (that is direction as well as magnitude) which could suggest that the low might even be at about $12. We have a gut feeling that that may be too low. Here are some , more objective, reasons.

1. Despite two or three downgrades the average target with 15 analysts is still at $33.

2. The p/e is at a modest 14 and the company has no debt.

3.Short positions amount to over 31% of the company’s float –the issue price was $24

4.RSI and MACD suggest a turn is around the corner.

5. Marketing by this company is terrible, just a few tweaks could result in dramatic improvements.

6. There are rumours  that the company is an excellent take-over target, perhaps by APPLE. Where there is smoke there is fire. The capitalization is about 2.3 bln., pocket change for AAPL.

7. The C wave subdivides into 9 separate waves, equal to a 5-wave move.

   In short our gut tells us this stock could double overnight. That possibility far outweighs the potential of another $4 down.

So we hit the $20 handle today, which was our target as per the previous blog. A dollar or two is still a distinct possibility but it is  not a good risk/reward proposition. In fact a bounce to $30, from here or a little lower, is the most probable EW interpretation. That would present a 50% gain and you are buying well below the original issue price or where the stuff started trading. For citizens of the World these are must-own-cameras as you go down Piz Nair in St. Moritz after your swim with sharks above the Great Barrier Reef in Queensland.

The usual then, April 29, 2015, and now charts;

We were asleep again and did not look at this stock. See our previous blog. Recently we got the rebound level in both the Dow and the S&P dead wrong so it is heart warming that we did get this one right. That is so far at least. The then suggested target of $24 may, however, be way too high. $5 is a possibility if both A and C legs become equal in size. It appears that we are in a 5th wave of C which should take the stock to about $20 as a minimum. Time will tell.