Ashraf Eassa
Long/short equity, contrarian, independent research, tech

With Worst Case Scenario Nearly Priced In, Ambarella Has 34% Upside Potential

Shares of Ambarella (AMBA) have become somewhat of a battleground, particularly as the short interest has continued to climb in the face of a stock price that - at its 2013 peak - tripled from its (poorly timed) October 2012 IPO. Put succinctly, Ambarella is a small-cap fabless semiconductor firm that develops HD video compression and image processing semiconductors. These products are used in a number of applications such as security IP-cameras, wearable sports cameras, digital still cameras, automotive video recorders, and even in TV broadcasting infrastructure systems.

A very interesting piece of research was recently released in which the author noted that channel checks with Ambarella's end customers suggested that while the company was likely to come...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details