Fitbit: Lots Of Resistance Till $6.50

As predicted here, Fitbit (FIT) was an easy purchase below $5 last year. The stock was insanely cheap with the cash balance and revenue stream. The move toward medical devices offered a huge upside catalyst.

The stock made a solid move towards $6 on Friday. After a higher low in December, Fitbit appears set for a rally to test the recent highs just below $6.50.


The market cap around $1.5 billion with the revenue stream at $1.5 billion is just far too cheap. Remember that a simple EV/S multiple doesn't reach 2x until the stock hits about $15. Don't dump this stock too soon!



Disclosure: Long FIT. Please review the disclaimer page for more details. 

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