Is CRSR: Corsair Gaming a Buy at 52 Week Lows?

Corsair, like many small cap stocks, have not seen much upside recently. There are many factors that have contributed to this loss such as poor guidance, increase in costs and supply chain issues. These are real concerns as most of their products are made in Asia (Taiwan) and their main source of revenue is through hardware sales.

From their high of almost $50, over the past year Corsair have steadily made their way back near IPO levels of low $20's. As mentioned, there are many justifiable reasons for this price decrease. However, with their upcoming investor day and earnings coming up around the corner, they may be able to turn things back around.

With investor day on January 20th, they will likely release some guidance which should impact the stock before earnings on February 8th depending on the type of information.

It is tough to say what direction they will head, especially as the broader market continues to see red. Corsair in the past have released guidance with negative news, bracing shareholders for a lower than expected earnings.

What is concerning is many of the reasons Corsair gave for the earnings miss in the past have not been resolved. Higher costs remain, there are still supply chain issues and GPU prices and availability haven't changed a bit.

I would like to be optimistic and say this past quarter was different but am not very confident just yet. My plan is to listen carefully to their investor day as they should provide important guidance. In the long term, I do remain bullish but short term think there is a real possibility of it coming down slightly below $20 before bouncing.

So, yes I do think at this price it is a great opportunity to buy, however I don't think you need to do so right away. It wouldn't hurt to wait for conformation. Personally, I would rather be late than wrong.

As always, none of this is financial advise or recommendations. I highly encourage you to do your own research before making any financial decisions and have a great day!

Disclaimer: I do have a position in CRSR