You know I’ve been patient waiting for stocks to pullback to levels that I can get excited about and we are getting there.
FitBit, GoPro and Ambarella are all getting squashed today, and I’m going to nibble a little bit of each of them today, using common stock. I don’t expect that I’m nailing an exact bottom today, but I use my playbook to tranche into a little more of these names while the rest of the market is panicking themselves out of them even as their valuations are finally compelling.
I’m buying back some more of the AMBA that we sold back when it was well into the triple digits, near $120 a share or so. I’m back to about as many shares as I had before I’d been trimming and taking profits on its spike over the last year from $20 to $130. AMBA is expected to earn $3.60 per share next year which gives them a forward P/E of 17, which is about what the broader stock market’s P/E is. Meanwhile, AMBA grow its topline 50% this year and will likely do 20-30% revenue growth or more next year.
I’m also adding a 1/5th-sized tranche of GPRO and FIT today, just scaling in on weakness. I guess you could say I’m scaling in and buying wearables stocks when the rest of the world hates them.