It appears that the camera giants such as Canon, Inc. (NYSE: CAJ) and Sony Corporation (NYSE: SNE) fell asleep on the action camera segment. Nikon (OTC: NINOY) is just now releasing its action camera, the KeyMission 360.
Research and Development (R&D) comes with cap levels and it's difficult to drive innovation in all directions. GoPro, Inc (NASDAQ: GPRO) has definitely taken a mile where the industry leaders gave an inch.
As a tech IPO, GoPro had captured the histeria of a classic momentum and brand power gadget. The market thought everyone would need it, buy it, buy two, etc. The stock cruized from the $20s PPS to the $80s PPS before it crashed.
In the $10 PPS range this seemed a bit oversold. The excitement had died down and parts maker, Ambarella, Inc. (NASDAQ: AMBA) had showed some declining numbers for the system-on-a-chip (SoC) designs. However, couldn't the stock rise like a phoenix once more?
The following is a look at 2015 Return on Research Capital (RORC) for GoPro, Inc:
Per the RORC metric for GoPro, one R&D dollar spent in 2014 resulted in $10.67 in gross revenue for 2015. Sony outperformed and is more of a dynasty with the myriads of business outlets it has. Canon and Ambarella ranked second and fourth, respectively.
Disclosure: I am long GPRO. I have no business relationship with any company whose stock is mentioned in this article.StockTwits
President Donald Trump put pressure on auto makers to keep manufacturing in the United States. The relationship does not appear to be completely adversarial as key CEOs later met with him at the White House for a positive meeting of the minds. Ford Motor Company claims to have canceled $1.6b for a new Mexico plant and diverted $700m towards domestic operations. The company's free cash flow (FCF) yield is strong as so is the dividend yield.
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Articles are written by Travis Brown at Seeking Alpha. Information covers stocks in the NASDAQ stock market and NYSE stock market.