Two Stocks That Can Continue To Go Higher: Altera Corporation (ALTR) and GoPro Inc (GPRO)
New York, NY – GDP INSIDER – 04/13/2015.
This article discusses two companies: Altera Corporation (NASDAQ:ALTR) and GoPro Inc (NASDAQ:GPRO)
Altera Corporation (NASDAQ:ALTR) shares increased by 2.2% on Friday in heavy afternoon trading based on merger rumors with tech giant Intel Corporation (NASDAQ:INTC). The day prior, it was reported that Intel had cut off talks with the company, causing the shares to fall. Altera previously rejected a $54 offer from Intel – the stock closed Friday at $44.28 – according to Bloomberg. At $54, the per share price would reflect a valuation of 23x trailing twelve months EBITDA. The Street believes that management and the Board could be pressured into accepting that premium valuation. It is clearly in the hot seat and shareholders will most likely press the Board to reconsider the offer. The Board at Altera does need to accelerate the decision making process before Intel does decide to shut down talks. The rumor on Thursday could have acted as the catalyst to get the Board of Altera to reconsider. The stock has significant upside and is an attractive M&A arbitrage opportunity given its downside risk.
GoPro Inc (NASDAQ:GPRO) had a good day on Friday, increasing in value by 3.5% after also jumping in value the prior day. While GoPro does not currently serve law enforcement organizations, some investors believe that it could add that to its product line up. Currently in the United States, there is increasing public pressure for police and other law enforcement agencies to have all offices equipped with camera that record all actions. GoPro does not currently market its video cameras to the law enforcement market. In order to target this audience, it would need to extend the battery live and storage capacity of its cameras. GoPro’s cameras are known for performance and quality. They record in high definition that is not necessary for law enforcement, so other changes to its cameras are also like before management markets to this community. Announcements from GoPro that it is going to start marketing to law enforcement agencies could act as a catalyst to send the shares higher.
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