Long Position on AMBA @ $18.00 on 9/16/2013 (Momentum)

Ambarella (AMBA) develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display.

The company’s system-on-a-chip designs fully integrate HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, Internet protocol (IP) security cameras, digital still cameras, telepresence cameras, and camcorders in the camera market; and manage IP video traffic, broadcast encoding, and IP video delivery applications in the infrastructure market.

The company sells its solutions to original design manufacturers and original equipment manufacturers directly or through logistics providers.

Shares have formed a bullish "flag" and higher share prices are expected for this stock.

52-Week Trading Range: $5.55 - $19.44

Entry Point:  $18.00

Stop Loss: $17.10

Target Price: $19.80

Updates

10/1/2013 12:03:30 PM

AMBA closed at $20.43 after it exceeded our target price.

Position closed on 10/1/2013 at price of $20.43 with a 13.50% gain in 15 days.

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