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Holy smoke cause this ain’t no jokers folks get your popcorn ready i repeat get your popcorn ready because do i have a video for you guys here today on corsair stock price this is gonna have more twists and turns than a thriller at the movie theater okay yeah this is this is a stock in which uh people are flabbergasted by they’re looking at it and folks that
Own the stock are like why is this one like not moving up right it’s just been in a vicious down cycle basically this entire year okay and folks that own the stock are like what is going on here like why it doesn’t matter like what goes on the stock just can’t move up right meanwhile on the other side you got a lot of people that have been looking at the stock
Thinking about buying and they’re like something’s got to be wrong here i mean the stock price just goes down all the time right and so in this video we’re going to get into some of these details on what is actually going on around the stock price and like i said there’s some twists and turns we’re going to go on today so hope you guys enjoy this as always sit
Tight grab yourself a ttcf uh plant-based burrito bowl and smash a like and that’s all i ask for okay now once again in regards to the the company the fundamentals everything looks on point here right the company’s been trading at like a 16 purling 12 month pe it’s been at a ford pf 1516 on a valuation basis that’s actually like extremely low especially in this
Type of market right if we look at eps expected to grow grow grow if we look at revenue growth grow grow grow and it’s like whoa whoa whoa what the heck is going on okay well if we go ahead and we look at tops institutional holders you see vanguard here with 2.6 million shares that seems like a huge number right blackrock has 2.2 million shares we i mean you know
You see these numbers they’re pretty big right top mutual fund holders vanguard 779 000 so i mean it’s like wow that’s a lot of shares right well hmm what if i told you that’s nothing okay there’s this company called eagletree eagletree capital they bought a majority share of corsair way back in 2017. for 520 or it was valued at 525 million dollars this means this
Eagle tree owns not just like 2 million shares like we were looking at for some of those other funds and whatnot right eagletree owns tens of millions of shares tens of millions of shares of corsair gaming they have basically a majority stake in this company a by far and away majority stake in this company and they have made bank on this because i can tell you
Even with corsair how much the stock price has gone down it’s still valued a whole lot bigger than when this eagle tree bought in so this eagle tree has made bank on corsair gaming like absolutely done phenomenal but what we’ve also been seeing is eagle tree capital has been selling some of their stake right back in january eagle tree capital looks to sell seven
Point seven seven percent stake in corsair gaming if we look at this here in june corsair gaming 160 million dollar share offering funds managed by eagle tree capital completed the sale of corsair gaming common stock for an aggregate consideration of 160 million dollars in a block trade pursuant to rule 144 so clearly eagletree has been selling some dang shares
Right now this has obviously retail investors very frustrated for the most part like you look at eagle tree capital and they get a pretty darn low of reviews on google and it doesn’t seem to be any of actual eagle tree customers who are actually mad by the way they’re near the diamond district man that’s an expensive expensive area over there needless to say but uh
Eagletree the retail shareholders of corsair gaming hate eagletree right now because they they feel like eagletree continues to put selling pressure on the stock selling and selling and selling and like i said look at the reviews corsair to the moon eagletree can’t stop us by the way thanks for the cheap shares haha stop selling your corsair shares in time you’re
Going to wish you never sold them and it’s just every single comment uh is around like corsair stop selling corsair thanks for giving us the cheap shares right and uh like a bunch of one star reviews and i can understand the frustration coming from uh you know investors let’s call it that right i mean i don’t know if i really understand the frustration coming from
Investors because let’s imagine you’re you want to own the stock for the next three years five years well you should want as many shares for as cheap as possible the issue is a lot of folks have bought call options over the past year in corsair gaming and they put themselves in a situation with corsair where you know the stock hasn’t moved so their options are
Expiring worthless or down massively right and so that leads a lot of folks who have been trying to play options around corsair figuring oh they’re not their business is going to be you know great the valuation is super low the stocks do to move right and it just doesn’t move and that’s exactly what we’ve seen play out right the stock hasn’t moved the company’s
Been reporting great earnings and you know people are frustrated especially if you were playing this as any short-term trade or if you were buying any call options on this stock right now this creates two big issues for corsair stock price as far as this whole eagle tree situation right one it’s put selling pressure on the stock there’s no doubt about that right
Now we don’t know how much on a daily basis but there’s no doubt like eagle tree has been selling we just don’t know what days how much those sorts of things but there’s no doubt they’ve put some sort of selling pressure out there on the stock as they sell shares right two and i think this is even a bigger more important factor is the boogeyman effect right where
Essentially by eagletree holding so many shares and showing their interest in selling those chairs it creates a massive boogeyman in the market and also with this eagletree being so silent on the situation it creates a massive boogeyman people don’t know whether eagletree wants to sell out of their entire stake over the next year whether they want to sell out
Their entire stake over the next two years whether they just want to sell a percentage people don’t know if this eagle tree is done selling or if they’re going to sell more we don’t get any communication out of this dang eagle tree it’s not like i see any press releases out there where eagle tree makes a statement on the situation right there’s certain things
They can’t mention but there’s also a lot of things they can mention right and so we don’t know how much this this eagle tree is even is is behind corsair gaming we don’t know if they they want to sell out all their shares so this creates this massive boogeyman where folks that have been on the sideline in regards to stalker looking and they’re like i don’t know
If i really want to buy corsair gaming because uh i could just end up tanking because this eagle tree sells out and heck the stock price could go to fifteen dollars it could go to ten dollars and eagletree would still likely have made a very nice return on investment right not certainly not the return on investment if it’s at twenty thirty forty dollars a share but
Still get a return on investment and so folks are like what if this eagle tree just doesn’t stop selling and they just continue to put selling pressure and next thing you know the stock’s at 15. and that’s where you get into all the fears around you know stock market investing in general and funds looking at this one they’re like i don’t know you know corsair looks
Like a great stock for to be in over the next five years but i don’t know if i want to buy it right now because what about eagletree you know they hold 50 plus of the shares what if they want to sell out also people don’t know if eagletree could already be done selling no one really knows okay it’s just this massive boogeyman that’s out there right now right now
Here’s where the twist comes into the story there’s also what’s called short sellers right short sellers bet against stocks and when it comes to corsair stock the short sellers are not shy about shorting the heck out of the stock recently right if you go back to when this stock was like a 40 stock hardly anybody was short in these shares right 3.3 million shares
Were basically sold short right people did not want it as far as a percentage of float that was shorted 13 a pretty normal number there as far as days to cover less than one day to cover the shares and this is back when the stock was like a 40 stock fast forward now let’s talk what is today was like twenty six dollars but recently the there’s been anywhere from
Ten to eleven million shares sold short and over three x from when the stock was you know flying high isn’t it interesting it should be inverse right it should be like you know if a stock’s flying high you short the heck out of it because it might you know be due to come down and then on the inverse side like uh you know when the stock’s already beaten down it
Might make sense to kind of calm yourself down a little bit as far as shortening right but whatever that’s a story it’s you know fomo both ways fomo happens in stocks when they’re going up and fomo happens to shorts when stocks are going down happens both ways look at the percentage of the float shorted now at this point in time it’s been around 30 percent around 30
Percent of the entire float is sold short now on the stock and as far as days to cover this is very important up to 5.6 days to cover more recently now this is very key because you add the cherry on top which is short borrow fee rate percentage has been around like 15 percent people have been reporting recently right which means now it is costing you a fortune a
Fortune if you want to sell short this stock essentially you are in a situation where you are paying through the nose to short the stock and this is after it’s already been beaten down so much now the shorts they say oh the stock’s going to 22. it’s going to 18 blah blah blah right and they could be right but man are they taking a massive risk when you’re talking
About you’re paying fees like this and uh with how many people are short now because keep in mind right here’s the thing with this one okay and here’s where the twist really starts to come in the volume has been drying up on corsair gaming in a massive massive way right i’m looking today 642 000 shares have traded i don’t know where it’s going to trade it by the
End of the trading day maybe a million shares trade hands maybe just over a million shares trade hands today right that’s compared to usual volume of 1.8 million shares 1.8 million the volume has been drying up in corsair stock in a massive way and the thing is longs we’re always ready for a stock to drop bigger right we’re all mentally prepared for the stock to go
To 24 22 20 18 whatever happens right we’re mentally like there if it was to actually happen it might not happen but at least we’re mentally prepared you know how we got mentally prepared because a lot of us probably this isn’t our first stock we’ve been beating down on right but two and more importantly we’ve already been beaten down in this stock we’ve already
Watched it go you know from the 30s to the 20s we’ve already gotten that that beat down right right there right but are shorts ready for a flip out of nowhere because here’s the situation when it comes to shorts right they’re all in a situation where they’re likely profitable right now now to keep in mind they’re paying through the nose to borrow on the stock
But they’re all profitable meanwhile somebody like myself is down right i’m down fourteen percent i’m fully mentally prepared to go down twenty percent on this stock right if i went down twenty percent on the stock it wouldn’t be the first time i was down twenty percent it surely won’t be the last time i’ll be down 20 plus on a stock right i come to be prepared
To be down 20 on a stock all i care about is where corsair stock price is in three years from now five years from now right and then i made a whole bunch of money in the end whatever happens in the short term is whatever happens in the short term i’m mentally prepared for that but the shorts that’s a whole different situation because they’re playing from a short
Term perspective you can’t bet against corsair over the long term it makes literally no sense to bet against corsair gaming over the long term when you think about the industries you’re in when you think about the management team here the products the brands all this thing like you have to be literally mentally insane to bet against corsair over the long term so
If you’re betting against the stock you’re betting over the short term right because you’re thinking okay the eagle tree they’re going to continue to sell shares so that puts a massive seller in the market rate and any time the loans go buy shares they’re just buying shares from eagletree that’s what the shorts are thinking right and so therefore they think this
Is easy money right this is easy money for us short short short who cares if we have to pay 15 17 on it we’re shorting it right because they’re looking at and they’re saying eagle tree just continues to put the selling pressure on so why not continue to short and eagletree continues to be silent so no one knows if eagletree’s trying to take their position down to
Fifty percent or forty percent thirty percent twenty percent ten percent zero percent so as long as the eagle tree remains silent the shorts are in a position of strength here because the silence is seen as kind of an advantage for them and it keeps the boogeyman out there in the market and so you know i can understand why some folks have been wanting to stay on
The sideline in regards to corsair despite liking the company because they’re not sure about this dang eagle tree and if they just want to continue to put you know massive selling pressure on it but on the flip side shorts are getting themselves into uh you know a twist here that i don’t think they even quite realize what is going to potentially go on because if
You have eagle tree all of a sudden come out and make a statement on you know maybe they’re being potentially done or hinting around to being done selling and also you take that massive uh seller out of the market and then you have all of us along that dude like this stock could go to 35 tomorrow i’m not selling it i’m not selling one share if it went to third it
Could go to 40 tomorrow i’m not selling one share of the stock right and so a lot of as long as we don’t care if it goes up a bunch and at the same time we don’t care if it goes down a bunch because we’re already mentally prepared for that we’re already going through that like if it goes down what are we gonna do buy more shares you know what i mean so the shorts
Uh you know all i’m gonna say is they’re getting themselves into a quite a pickle here from the long side we don’t care but from the short side this stock also goes to 30 32 34 36 38 those shorts are going to get absolutely devastated because they need this stock to go down in the short term longs we got we got all the time in the world on our hands right we got
All the time in the world the shorts have anything but time guys and uh so yeah it’s a dramatic story regardless if you own the stock or or you don’t own the stock i think it’s one to watch just for the perspective of it’s uh it’s interesting to see the battle between the shorts and the longs and this one over the next year or so guys so hope you enjoyed today’s
Video as always if you want to text me on your stock market questions that will be the pin comment down there i might also have it linked in the description much love as always guys and don’t forget to smash and have a great day
Transcribed from video
im not selling it By Financial Education
