TLDR: Why the merger deal will keep GPRO stock range bound.
With the Go Pro merger with Starman Optical. Share holders will be paid $1.14 a share and 10% equity in the new resulting company.
Valuing the resulting company as being worth 400 million. At 180 million outstanding shares, with shareholders getting 10% of the equity that amounts to $.22 of value per share if you value the resulting company as being worth 400 million. Which I feel is a very solid base line of a bare minimum valuation.
So at a $1.36 and lower per share market is valuing at less then the merger deal is worth in January.
If one values the resulting company as being worth 1.8 billion which I pick because its easy math. And I believe a plausible high end valuation.
The stock price would be 1.14 + $1 or 2.14 a share.
So anyone looking for the moon, or trying to short this thing when its basically at a practical bottom. I wish you luck. But the odds aren't in your favor. Plenty of opportunity in the chop though.