Diamonds and Dogs
6/26/14GoPro Inc. (GPRO)
GoPro soared in its initial public offering today due to the popularity and excitement surrounding the value of the action sports first-person video camera maker. The stock rose on this day as much as 31% to $31.43 per share. Investors were keen to get in on the innovative video camera company that is valued at $3 billion after its initial offering today. GoPro is valued in part for its overwhelming presence on Social Media (Facebook, Twitter, Instagram) and its rank as number 1 on YouTube for the most watched brand channel from January 2014 to March 2014. The popularity, quality of software, and the availability of the portable camera make it ideal for casual users as well as professional filmmakers. Although GoPro remains completely reliant on Amarella (AMBA) as a supplier for the systems-on-chip for their cameras, the prospects for the stock will continue to look positive in the future.
Lihua International, Inc. (LIWA)
Lihua International, a copper replacement in the Peoples Republic of China, is the clear dog for the day. The stock dropped almost completely, falling 83% by mid-day. The stock hit an all-time low of 36 cents after the law firm, Holzer & Holzer, announced a class-action lawsuit against the company. The firm alleges that Lihau "overstated its assets and financial performance," causing a catastrophic response towards the company's stock, which had already been in a perilous downward spiral. Only 6.40% of the float was shorted by May 30th, even though shorting may be the only way to make a profit from LIWA. Lihau's future looks like it could end much sooner than expected.