Nvidia (NVDA) Approaches Its Indicated Sell At Price
Financial statement trends, Software Developer
Seeking Alpha Analyst Since 2014
Risk Research provides two research services for private equity firms, institutional investors and family offices. Both are based on a combination of proprietary software and traditional Graham and Dodd analysis.
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Nothing is within one percent of either the Algo-indicated Buy At or Sell At prices. Two are within 2% of their indicated Sell At price, NVDA and CRM. We’re looking forward to selling part of the CRM position and all of the NVDA position should they reach those prices today.
First, the market is high. We’d like to increase our cash position which is currently 5.7% of portfolio. Our CRM position is too large relative to the overall size of the portfolio. And NVDA appears to be overpriced. We estimate its five year appreciation potential at negative ten percent a year. Free cash flow has been flat for a couple of years, and liabilities are up approximately threefold. It isn’t a matter of default risk — the company’s financial strength is still exceptional — but the trends are in the wrong direction.
Nvidia’s Summary Report:
You can access the eleven page Detailed Report on Nvidia here.
Analyst's Disclosure: I am/we are long NVDA.
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