NEW YORK (TheStreet) -- GoPro (GPRO) announced Monday that it would have a secondary offering of approximately 10.4 million shares. TheStreet's Jim Cramer said many investors had been waiting for a large secondary offering.
Cramer says he has liked GoPro from when it went public until it hit the mid-$90 range, where he felt it got "frothy." The stock then came down to the $70 range and GoPro reported a good quarter, but the stock did not immediately fly because of rumors of a secondary offering.
Cramer says the short is so big here that there is not enough stock around to be able to meet the demands of the short-sellers. He believes the shorts are panicking ahead of the secondary because they realize they won't be able to get enough of the 10 million shares, so they are buying the stock in advance.
Cramer hears GoPro is having a very good holiday season, so he thinks the stock can go higher. He thinks it "probably makes sense" to try to get some stock on or ahead of the deal, but now we are talking about a trade rather than an investment.GPRO data by YCharts