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Ambarella tumbles after SA Pro article comes out of embargo

  • Down moderately yesterday after the publication of a bearish SA PRO article from Ashraf Eassa, Ambarella (AMBA -7.2%) is falling hard today following the article's general release.
  • Eassa argues the barrier to entry for Ambarella's wearable camera video-processing SoCs isn't that high, and that chipmakers such as Qualcomm, Nvidia, Intel, and Samsung could conceivably enter the market.
  • He also calls Ambarella's valuation (4.6x EV/sales, 30x EV/FCF) "absurd," and estimates the company's Google Hangouts camera deal would only boost EPS by $0.32 even if 1M units were sold.
  • Eassa thinks Ambarella's trajectory could resemble that of IPTV chip developer Sigma Designs, whose shares skyrocketed in 2007 but quickly came crashing back to Earth as competition intensified.
Comments (9)
  • Regarded Solutions
    , contributor
    Comments (16394) | Send Message
     
    Hmmm, well he also was banging the drum for Intel. Hows that working? AMBA could surprise everyone....of course I am long at 15, so good luck to all.
    5 Feb, 01:14 PM Reply Like
  • tipper 1
    , contributor
    Comments (129) | Send Message
     
    Where have you been RS? Awfully quiet when it comes to GALE and now AMBA
    5 Feb, 03:24 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (16394) | Send Message
     
    I am not reponding on GALE after my interview with the CEO....too tough emotionally....AMBA is a growth small cap stock....an article gets written, which I disagree with and people who bought high are selling low? Silly, but its the stock market. I wont comment on that article either. I believe the Intel action speaks volumes for what to expect.
    5 Feb, 03:52 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9034) | Send Message
     
    RS, pretty poor defense to say, "oh, he called it wrong on INTC, nothing he says matters" :-)
    5 Feb, 04:20 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (16394) | Send Message
     
    this one will be wrong as well it appears, and yes, pointing out that you have been yelling for over a year or so about how amazing Intel is, speaks volumes on how an investor would view your opinion on this one. :)
    Can you handle it?

     

    How about shorting JNJ and writing about it? Looks overpriced dosnt it? LOL
    7 Feb, 08:01 PM Reply Like
  • tipper 1
    , contributor
    Comments (129) | Send Message
     
    Why wasn't RS's comments deleted like mine were because he didn't approve of AE's viewpoint. My opinion was stated in a much less emphatic tone. AE is entitled to his opinion,... it just cost a lot of us lots of money. Remember, money is good for one thing in life....keeping score
    8 Feb, 04:15 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (16394) | Send Message
     
    you had comments removed because you disagreed? Thats absurd.
    8 Feb, 04:17 PM Reply Like
  • Dking234
    , contributor
    Comment (1) | Send Message
     
    You give yourselves too much credit for this market move.
    5 Feb, 02:15 PM Reply Like
  • BuyToSell
    , contributor
    Comments (220) | Send Message
     
    I saw as a great opp to add to position.
    5 Feb, 02:57 PM Reply Like
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