Long Position on AMBA @ $53.65 on 1/16/2015 (Fundamentals)

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

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.

Shares are heading higher in an upward trading channel. We expect shares to pull back to the lower boundary of the said channel, and then rebound higher!

52-Weeks Trading Channel: $21.60 - $63.20

Entry Point: $53.65

Stop Loss: $50.97

Target Price: $59.03

Updates

1/20/2015 1:29:45 PM

Taking profits on AMBA at $59.14. If you wish to stay in the stock, raise your stop loss to $58.10 to protect your gains!

Position closed on 1/20/2015 at price of $59.14 with a 10.23% gain in 4 days.

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