Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (58591)	12/3/2016 6:57:39 PM
From: Graham Osborn	1 Recommendation Recommended By staring Read Replies (1) \| Respond to of 78748

As I say, IMO FIT is a hardware and not a services company. They need to increase device sales to boost revenue. The business model is no more sustainable than AAPL's is, but as we have seen a strong branded hardware product can have a good run before the inevitable commoditization phase. If they succeed in services that's great, but given how little revenue FIT generates from "subscribers" currently I consider that a new and unproven business model for them (at best). GPRO has already proven they can't generate replacement sales. They are trying to replace falling revenues with unproven product lines like drones. I generally don't invest in businesses that aren't growing, so GPRO fails that test. If FIT starts experiencing a precipitous decline in sales I will probabiy not buy back in, but I have time to judge that trajectory over the next few quarters.