Long Position on AMBA @ $41.75 on 9/24/2014 (Momentum)

Ambarella, Inc. (AMBA) develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. Its chips are used in GoPro products.

The company’s system-on-a-chip designs integrated 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, and camcorders in the camera market; and manage IP video traffic, broadcast encoding, transcoding, and IP video delivery applications in the infrastructure market.

The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and logistics providers.

We have featured this stock several times in the past with great success. Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

52-Week Trading Range: $17.55 - $42.77

Entry Point: $41.75

Stop Loss: $39.66

Target Price: $45.92

Updates

9/30/2014 9:37:05 AM

AMBA reached our target. Closed at $46.65.

Position closed on 9/30/2014 at price of $46.65 with a 11.74% gain in 6 days.

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