• Skip to content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Trading With Cody

Long-term Revolution Investments and Real-time Trades from Cody Willard


  • Twitter

  • YouTube

  • iTunes Podcasts

  • SoundCloud
  • Trade Alerts
  • Latest Positions
  • All Archives
  • Chat Room
  • Books
  • About/FAQ/More Info
    • Testimonials
    • FAQ
    • Contact
    • Privacy Policy
    • Support
    • Money management services
    • Public Speaking
    • Cancellation Policy
    • Login

Will Ambarella ever rest?

June 4, 2015 by Cody Willard

Vampirella: You are much stronger than I am.
Vlad: At the risk of sounding egotistical, I am stronger than anyone. – Vampirella the Movie, 1996

Ambarella breaks $100. For the last year or so, I’ve owned this stock as a pureplay on the Wearables Revolution and it’s been very profitable to do so, as I wrote at the time:

“AMBA is trading at 4x sales and at at 25x forward P/E. With topline growth of 20-30% per year for the last few and for the next few years, I’m willing to pay up a bit for this name as video capture and sharing is likely to become a bigger part of just about every connected device we use and own. The company does have nearly $7 per share in net cash, which brings the enterprise value / sales figure down to about 3x. That $7 per share in net cash gives them financial flexibility as does the cash flow that they spin off each quarter, but it’s not much of a cushion when you’re buying the stock at $28 per share as we are. Frankly, it’s a long way down to ‘cheap’ if the company doesn’t deliver more topline growth in coming years and over the next decade at least.”

Topline growth turned out to be nearly 50% over the past year, not the 20-30% most analysts were modeling. Even with a 300% move over the last 12 months, AMBA’s now trading at more than 8x sales though with their expanding margins, the forward P/E is still under 30x. All that said, this AMBA stock needs a rest at least at some point. Or not. Vampirella never needed a rest, why should Ambarella? I’ve lightly trimmed the stock a couple times already as it has quadrupled since I bought it and am holding it steady for now.

Screen Shot 2015-06-04 at 11.18.28 AM

More importantly, I’m hard at working finding the next AMBA, FB, GOOG, AAPL for us, just like we found the originals. 🙂

PS. I’m going to be speaking at the upcoming MoneyShow San Francisco. 

5 Hot Stocks to Buy This Summer* Lunch Panel
Friday, July 17 | 12:35 pm – 2:05 pm PDT
SAVE $20—*$89 per person if purchased by June 25; $109 per person if purchased after June 25.

Slow Down! Why You’re Trading Too Much and How to Stop
Saturday, July 18 | 8:00 am – 8:45 am PDT

Join Scutify at The MoneyShow San Francisco!
ScutifyTo find practical and profitable growth and income ideas,specific stocks and income-generating investments that meet your own, unique objectives, and the optimal allocation strategy that will result in maximum portfolio performance, you simply have to attend this summer’s #1 educational event for investors: The MoneyShow San Francisco!Thousands of more educated, informed portfolio decisions will be made as a result of attending this event, and you can get started today by registering free to attend the Show, July 16-18. Plus, receive a special bonus, yours instantly just for completing your registration!
Register FREE Today
Join Cody Willard for His Presentations:
Cody Willard

5 Hot Stocks to Buy This Summer* Lunch Panel
Friday, July 17 | 12:35 pm – 2:05 pm PDT
SAVE $20—*$89 per person if purchased by June 25; $109 per person if purchased after June 25.

Slow Down! Why You’re Trading Too Much and How to Stop
Saturday, July 18 | 8:00 am – 8:45 am PDT

A broad-market correction or changing leadership in the equity universe could see top-performing stocks give way to some largely forgotten shares hidden among beaten-down sectors and global markets. So, as these renowned money experts analyze the current investment landscape, you’ll take away actionable guidance and specific recommendations to help your portfolio continue growing through the summer months and beyond.
See speaker lineup here
Instant Bonus: Register free today and receive an
all-new special report,
Your Tech Stock Hot List: Because Investors Can’t Survive on AAPL Alone
Register FREE Today
Find complete show details and register FREE by calling 800/970-4355
or visiting www.SanFranciscoMoneyShow.com today!
(mention priority code 039080)
MoneyShow Las Vegas

 

 

 

 

Related posts:

Be Careful With All That Coinbase Crypto Hype
Trade Alert: Google and the "tech bubble"
Updates on two stocks
More on the next market crash catalyst (and another reminder to sell while you can...)
Think about the message in this opening write-up...
  • Twitter
  • YouTube
  • iTunes Podcasts
  • SoundCloud

Filed Under: Trading

Disclosure: At the time of publication, the firm in which Willard is a partner and/or Mr. Willard had positions in some of the stocks mentioned above although positions can change at any time and without notice.

Reader Interactions

Primary Sidebar

Must Read Articles (Free)

How To Invest In Business Models From Outer Space
Everything You Need To Know About Cryptocurrencies

You are not currently logged in.








» Register
» Lost your Password?

Subscribe now. You can cancel at anytime.

Buy with Crypto

Footer

This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or cryptocurrency or token any other product or service by Cody Willard or any other third party. Furthermore, nothing in this is intended to provide tax, legal, or investment advice and nothing in this should be construed as a recommendation to buy, sell, or hold any investment or security or cryptocurrency or token or to engage in any investment strategy or transaction. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal or tax situation.

Copyright © 2022 · Magazine Pro on Genesis Framework · WordPress · Log in