Jobs report, stock updates and a question from Dr. Jaimie Shores
Jobs? Employment? From a survey that has a +/-100k error as@JeffMiller notes. Not a catalyst for buying or selling stocks nor a meaningful data point for economic analysis. Markets were down earlier, now have come back reflecting the meaninglessness of the payroll number being “worse than expected” by a bunch of analysts a bunch of reporters emailed to survey about what they expected in this survey. Dog chase tail anybody?
$AMBA blew out the quarter, top and bottomline and just guided to $60M-$64M vs $57M consensus. Ambarella’s fundamental growth and potential for even bigger growth ahead as it sells its market-leading camera chipsets to all the $GPRO knockoffs coming to market this Christmas and next year has that stock hitting all-time highs. I’m long since the $20s and remain so.
JRJC is fading ever lower, down nearly 30% now, since we bet against it’s hyped spike. Steady as she goes, as I think it heads back towards $5, though I will likely take some partial profits before then when it hits a $7 handle or so.
Ciena CIEN has gotten back half its losses from yesterday’s post earnings report sell-off. That’s why we don’t panic. I’m still working on what to do with it next — either add to it since it’s my smallest position or sell it and move on. I am speaking with analysts and salesguys in the industry and at Ciena to get a better feel before I make my move. Couple more days and I’ll have my analysis done.
I got a text from Italy over iMessage with this question from my best friend from college, against whom I once set my high school’s basketball scoring record when he tried to cover me my senior year as we beat his Hot Springs team. Nowadays, he leads teams that do double hand transplant surgeries and other surgical miracles at Johns Hopkins. I remember dunking on him though. Hoohah. Go RHS Warriors.
Q. Cody, thought I would ask you a stock question that I’m curious about. JDSU is near its 52 week low, hasn’t moved much in months. AMBA is near or at its 52 week high. Are either or both of these a good buy? I would think that JDSU at a low should be good but they haven’t moved in months really. AMBA seems to have a lot of momentum and some good press today so they are already up, but how much higher can they go? Should I be buying more of JDSU at value and any of AMBA right now which is shooting up? Yes, this is what I’m doing on my last day in Italy since I have a little time!
A. You should be sipping an espresso and looking at scenery and people. But ok. Looking out five years from now each of these stocks could be up 3-5 fold if they catch traction in the Wearables revolution and drone revolution. Amba is already a leader in both revolutions. Jdsu has no traction in the either revolution and remains a fiber optic component company for now and fiber optic components are doing just ok right now. I have a much bigger position in amba than I do in jdsu and am not selling either right now. I would consider adding a tranche to either name but would prefer amba since they so have traction already if I wanted to buy some stocks right now as it appears you do right now.
