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Nvidia (NVDA) Approaches Its Indicated Sell At Price

Jan. 21, 2021 11:21 AM ETNVIDIA Corporation (NVDA)
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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. 

1. Investigative due diligence into factors that determine risk and reward for corporate acquirers, private equity firms and family offices. (www.riskresearch.info)

2. The Dividend Investor Risk Report. Our passive investment portfolio focused on quality dividend payers. We identify companies likely to increase their dividend based on free cash flow trends and dividend history. (www.dividendrisk.com).

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.

We offer this research as insight into what we do in our own portfolio rather than as a recommendation or offer to buy or sell securities. This research should not be your sole source of information. It is based on probabilities, not certainties.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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