Reading the "Risk Factors" in the From S-1 always proves to be educational. Thanks to the SEC the disclosures tend to be very candid (if not partially shrouded by legalese) and a good indicator of the structural weaknesses of a company.
For FitBit the lack of subscription revenue (1% of total), the litigation following product recalls, and the uncertainty from complying with FDA regulations seem particularly noteworthy.
This is not about cybersecurity or encryption. This is about a country that has been poisoned by the brutality of drug cartels for decades.
While ISIS terrorizes Iraq and Syria. Living in fear has become the norm for Mexico. But cartels cannot be bombed by drones and Mexico cannot be occupied by foreign forces. There are only two choices for those living in Mexico: either flee to the U.S. or accept living in a country where drug cartels yield more power than the government.
For FitBit the lack of subscription revenue (1% of total), the litigation following product recalls, and the uncertainty from complying with FDA regulations seem particularly noteworthy.