1. Is the company undervalued?

$GPRO is cyclical stock, which is trading near all-time lows in regards to book value and sales. With that said there’s a strong case to be made that the business is headed for a material slow down and mean reversion in profitability. Nevertheless management believes they can continue to grow topline over the next 12 months. Furthermore $GPRO has a sterling balance sheet and are returning sizeable capital back to shareholders. If management is correct in their assertions, there’s a strong chance the stock is mispriced.

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