Darrell said the world is changing in lots of ways that are great for Logitech. The hybrid work model means employees now have multiple desks and a greater need for video conferencing cameras and equipment.
Gaming also continues to grow, leading to strong sales in keyboards, mice and headsets. And people are producing more content on platforms like YouTube and TikTok, which means more cameras and editing.
When asked about rising freight costs, Darrell said that increases in ocean freight are only temporary and typically come in cycles that they've seen before.
The secular growth trends are what matters, Darrell concluded, and Logitech's stock price will ultimately reflect those.
We looked at the charts of LOGI on March 24 and wrote that "LOGI may not be totally out of the woods yet but the charts and indicators have improved. I am not ready to recommend a purchase but I suspect prices can improve from here. Stay tuned."
Prices steadied for a few weeks but eventually made new lows for the move down. Let's check the charts again.
In this updated daily bar chart of LOGI, below, we can see that prices have been in a downtrend from early June. Prices are trading below the declining 50-day moving average line and below the bearish 200-day line.
The daily math-driven On-Balance-Volume (OBV) line has been in a decline telling me that sellers of LOGI are more aggressive than buyers.
The 12-day price momentum study shows equal or higher lows from January as prices made lower lows. This difference in direction is a bullish divergence but divergences are not great timing tools but can at times foreshadow a change in direction.
In this weekly Japanese candlestick chart of LOGI, below, we see a mixed picture. Prices are in a downtrend and trade below the declining 40-week moving average line. There are no bottom reversal patterns yet on the chart but the OBV line has been steady for several months. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this daily Point and Figure chart of LOGI, below, we can see a close by downside price target of $62.
In this weekly Point and Figure chart of LOGI, below, we see that the software suggests the $57 area as a potential price objective.
Bottom line strategy: Unfortunately the charts of LOGI have not bottomed yet. The Point and Figure charts suggest we might see some technical buying develop in the $62-$57 area but I am in no rush to buy at this point in time.