Corsair to go public

[Spotty]

Summary

Are you the sort of person who has a Corsair case, PSU, memory, CPU cooler, GPU waterblock, RGB fans, mouse, mousepad, keyboard, and headset yet still feels like there's a Corsair shaped hole in your life? Well worry no more, as die hard Corsair fans will soon be able to purchase a piece of the company itself as Corsair plans to go public.

 

Quotes

Quote

Corsair has filed a $100 million IPO and intends to trade on Nasdaq under the symbol CRSR.

 

Corsair has grown leaps and bounds in the two and half decades since it was founded, and if things go to plan, the company will soon become a publicly traded company. The gaming peripheral maker filed a $100 million initial public offering (IPO) as an "emerging growth company."

An IPO would cap off Corsair's ascension from primarily a memory maker in the 1990s to one of the biggest players in the PC gaming peripheral space. Corsair now sells a wide variety of PC gaming hardware, including cases and cooling products, power supplies, storage drives, keyboards, mice, streaming accessories, and even full blown gaming PCs.

Corsair has also made some key acquisitions over the past several years. It purchased boutique builder Origin PC and Scuf Gaming last year, and the year before that, it scooped up Elgato Gaming to bolster its presence in the streaming space. These purchases have left Corsair with some loans to pay back.

This is not the first time Corsair has considered going public. It had aspirations of doing so in 2012, under the same stock symbol, but announced in May of that year it was postponing those plans "due to weak equity market conditions."

 

 

My thoughts

Finally someone is bringing RGB to the stock market. /s

It will be interesting to see the company go public. They are one of the biggest brands in the custom PC and peripheral market and have some product in pretty much every category of PC peripherals all the way from keyboards to headset, mouse pads, and streamdecks after their recent purchase of Elgato.

I don't think I ever realised that Corsair purchased Origin PCs last year. There's not much Corsair isn't involved in when it comes to custom PCs these days.

 

There's a *lot* of information about the company in the SEC filing if anyone is interested and has an interest in the more financial focused stuff, linked in the sources below.

 

Sources

https://www.pcgamer.com/au/corsair-ipo-shares-public/

SEC Filing: https://sec.report/Document/0001193125-20-227100/

Edited August 24, 2020 by Spotty
fixed images

[AlTech]

I simultaneously really dislike companies going public, moreso tech and gaming companies, but also think it's kinda cool to own parts of companies.

 

The problem I find is that usually it causes companies to disregard consumer opinions and causes the company to please shareholders at the expense of paying customers.

[Spotty]

7 minutes ago, AluminiumTech said:

The problem I find is that usually it causes companies to disregard consumer opinions and causes the company to please shareholders at the expense of paying customers.

*cough* Intel *cough*

 

On the other hand it could give them the capital they need to expand and grow. With their recent acquisition of Origin perhaps looking to expand their position in the "gaming" focused pre-built market alongside other builders like Cyberpower, et all?

 

I could just imagine the shopping experience for buying a Corsair prebuilt PC.

• Upgrade to 32GB of Corsair DDR4 memory?
• Upgrade to 750W Corsair PSU?
• Upgrade to Corsair 240mm AIO?
  • Would you like RGB with that?
• Add Corsair gaming keyboard?
• Add Corsair gaming mouse?
• Add Corsair gaming mousepad?
• Add Elgato Streamdeck?
• Add Elgato 4k60 Capture card?
• Add Corsair Headset?

People would do it too

 

7 minutes ago, AluminiumTech said:

but kinda also cool to own parts of companies.

I wonder if anyone here would seriously consider investing in Corsair stock? If so why Corsair?

Edited August 24, 2020 by Spotty

[AlTech]

Just now, Spotty said:

*cough* Intel *cough*

I was thinking more EA, Activision Blizzard, Take Two Interactive.

Just now, Spotty said:

On the other hand it could give them the capital they need to expand and grow. With their recent acquisition of Origin perhaps looking to expand their position in the "gaming" focused pre-built market alongside other builders like Cyberpower, et all?

I was under the impression that they're doing this to pay off their loans or debts.

[Spotty]

1 minute ago, AluminiumTech said:

I was under the impression that they're doing this to pay off their loans or debts.

Probably. Apparently Origin and Elgato were not cheap.

[Spotty]

2 minutes ago, VegetableStu said:

flat-out Corsair enters the motherboard market? 

Unlikely. They don't have the manufacturing capabilities for that and setting that up would be quite expensive. Same for graphics card production.

[Haro]

10 hours ago, Spotty said:

It purchased boutique builder Origin PC and Scuf Gaming last year, and the year before that, it scooped up Elgato Gaming

Wow, i did not know that, that's huge investments that happened within the span of 2 years lol.

[Quinnell]

Obligatory reminder:  Please remember not to invest in a company based on emotion.  Just because you love Corsair products doesn't mean it's a good investment.  Do the due diligence before dumping money into a company!   

[RejZoR]

I consider Corsair to be one of really good hardware designers/makers. Almost everything they make is generally of high quality and that's great.

 

Now that I've said that, I think going public is bad. They've been doing great for now under full control. Once you mix in greedy shareholders with dumb expectations, shit often goes south. Not always, but often.

[Kisai]

1 hour ago, Spotty said:

 

My thoughts

Finally someone is bringing RGB to the stock market. /s

It will be interesting to see the company go public. They are one of the biggest brands in the custom PC and peripheral market and have some product in pretty much every category of PC peripherals all the way from keyboards to headset, mouse pads, and streamdecks after their recent purchase of Elgato.

I don't think I ever realised that Corsair purchased Origin PCs last year. There's not much Corsair isn't involved in when it comes to custom PCs these days.

 

There's a *lot* of information about the company in the SEC filing if anyone is interested and has an interest in the more financial focused stuff, linked in the sources below.

 

Sources

https://www.pcgamer.com/au/corsair-ipo-shares-public/

SEC Filing: https://sec.report/Document/0001193125-20-227100/

Every time a company goes public, either their products immediately become rubbish, or become rubbish over time as they acquire competitors and put their brand on their rubbish products. Few companies have leadership that can steer a company away from being a rubbish company. Look at what happened to Apple and Atari after they allowed the suits to take over. Apple managed to get Steve Jobs back. Atari went from company that could buy off any engineer with a better deal to basically a toxic brand overnight.

 

[themaniac]

Wonder how long until everything is finalized and how much the stock will end up being worth

[TetraSky]

Huh, interesting.
 

It will be fun watching the stock rise and hit myself for not investing in it sooner.

Or see it tank hard for some reason while laughing maniacally. 

[SenKa]

5 hours ago, Spotty said:

I wonder if anyone here would seriously consider investing in Corsair stock? If so why Corsair?

Depends on what the price per share is. Stands to be some good quick money if you catch it early and then sell when it over-inflates from initial hype.

[Trik'Stari]

5 hours ago, AluminiumTech said:

I simultaneously really dislike companies going public, moreso tech and gaming companies, but also think it's kinda cool to own parts of companies.

 

The problem I find is that usually it causes companies to disregard consumer opinions and causes the company to please shareholders at the expense of paying customers.

This is called Shareholder Primacy, it is the single biggest problem facing the stock market, and in my opinion society as a whole, in todays world.

 

It's the thing that, in my opinion, forces companies to make stupid decisions when you consider long term business plans, and forces CEO's to behave like psychopaths, or more likely the reason that so many psychopaths end up as CEO's. It is the reason that making $6,000,000,000,000 in profit in a year is considered bad, because they made $7,000,000,000,000 last year.

 

There needs to be an alternative. Something that balances keeping the good of shareholders in mind as well as the overall long term good of a company and society as well.

 

Sorry for the mini rant. I see this problem and seemingly no one else ever talks about it.

[wall03]

1 minute ago, Trik'Stari said:

This is called Shareholder Primacy, it is the single biggest problem facing the stock market, and in my opinion society as a whole, in todays world.

 

It's the thing that, in my opinion, forces companies to make stupid decisions when you consider long term business plans, and forces CEO's to behave like psychopaths, or more likely the reason that so many psychopaths end up as CEO's. It is the reason that making $6,000,000,000,000 in profit in a year is considered bad, because they made $7,000,000,000,000 last year.

 

There needs to be an alternative. Something that balances keeping the good of shareholders in mind as well as the overall long term good of a company and society as well.

 

Sorry for the mini rant. I see this problem and seemingly no one else ever talks about it.

what about offering a small amount to the public and not worrying too much about it?

Low risk, low reward, tho

[Trik'Stari]

12 minutes ago, wall03 said:

what about offering a small amount to the public and not worrying too much about it?

Low risk, low reward, tho

I think there are ways to do that? I'm not an expert on the subject, I just know I never hear anyone talk about shareholder primacy.

[Ankerson]

Likely not a good thing...

 

Once Companies go public their focus changes from the customers and the products to making shareholders/investors happy.

 

Whatever it takes to make them happy, gotta look good on paper to them so they start cutting corners and quality starts going down hill fast...

 

Normally not a good thing in the long run.

 

Time will tell if they go down hill or not.

 

I hope for the people that work for them and us the customers they don't go down hill, but that is what usually happens...

[DildorTheDecent]

8 hours ago, Spotty said:

 

You should see what it's like configuring an Origin system for fun. Corsair everywhere.

[Joduko]

Stonks

[justpoet]

3 hours ago, Trik'Stari said:

This is called Shareholder Primacy, it is the single biggest problem facing the stock market, and in my opinion society as a whole, in todays world.

 

It's the thing that, in my opinion, forces companies to make stupid decisions when you consider long term business plans, and forces CEO's to behave like psychopaths, or more likely the reason that so many psychopaths end up as CEO's. It is the reason that making $6,000,000,000,000 in profit in a year is considered bad, because they made $7,000,000,000,000 last year.

 

There needs to be an alternative. Something that balances keeping the good of shareholders in mind as well as the overall long term good of a company and society as well.

 

Sorry for the mini rant. I see this problem and seemingly no one else ever talks about it.

There are a few ETF's and other funds that only invest in companies with specific ethical or end user policies.  I don't remember names offhand, but you may want to look into those.  While it doesn't change the greater market immediately, the more people who use funds like that, the more companies will care to be eligible for those funds.

 

As for the general topic.  If I were a fan boy of Corsair, I'd add a single stock share to my list of things to buy.  It may, or may not, be a great investment financially, but it would give the fan boy easy access to all information the company produces (often about projected upcoming projects by way of guidance for financial expectations) and voting rights to help say what the company does.  Several people used to do that for Apple until the stock price got crazy.

 

I like Corsair in general, and I think they manage to put off a premium feeling brand for most things, so they should do well.  That doesn't mean the stock will be a good buy.  As others have said, if you want to buy as an investment, rather than as a cool bit of Corsair brand insight, make sure you do your own due diligence and research.  Emotional stock buying usually makes people emotional over losses.

[cj09beira]

11 hours ago, VegetableStu said:

flat-out Corsair enters the motherboard market? 

that's a bad market to get into though, low margins on most boards, quite high development cost, its really not worth much, plus its mostly saturated, and would be hard to make themselves different and unique, as everything is integrated these days 

[justpoet]

1 hour ago, cj09beira said:

that's a bad market to get into though, low margins on most boards, quite high development cost, its really not worth much, plus its mostly saturated, and would be hard to make themselves different and unique, as everything is integrated these days 

I could see them co-branding with an existing board maker for the purpose of lower cost OEM boards for pre-builts.  But I agree, I don't think they'll suddenly decide they should make motherboards.

[Orangeator]

I will most likely purchase a share or two of the stock just because of my love for Corsair and the amazing people who work there. They care about consumers and listen to the media's advice, like Steve from Gamers Nexus. Regardless if its a "financially smart decision", I would love to support them and "own" a portion of the company. 

[MarkelFe]

7 hours ago, justpoet said:

There are a few ETF's and other funds that only invest in companies with specific ethical or end user policies.  I don't remember names offhand, but you may want to look into those.  While it doesn't change the greater market immediately, the more people who use funds like that, the more companies will care to be eligible for those funds.

 

As for the general topic.  If I were a fan boy of Corsair, I'd add a single stock share to my list of things to buy.  It may, or may not, be a great investment financially, but it would give the fan boy easy access to all information the company produces (often about projected upcoming projects by way of guidance for financial expectations) and voting rights to help say what the company does.  Several people used to do that for Apple until the stock price got crazy.

 

I like Corsair in general, and I think they manage to put off a premium feeling brand for most things, so they should do well.  That doesn't mean the stock will be a good buy.  As others have said, if you want to buy as an investment, rather than as a cool bit of Corsair brand insight, make sure you do your own due diligence and research.  Emotional stock buying usually makes people emotional over losses.

That's such a good strategy

[williamcll]

He bought?
Doomp it.