Tuesday, January 18, 2011

What to buy when Apple and IBM crushed the numbers?

It is nothing but ARMH (ARM Holdings Plc), which designs microprocessors, physical intellectual property (IP), and related technology and software, as well as sells development tools to enhance the performance of high-volume embedded applications. Its ubiquitous chip technology is found in about 95% of the world’s mobile microprocessors (Iphone Ipad etc). Apple sold as many as 7.3 million Ipads in the holday quarter and it was more than analysts predicted and it really counts for ARMH investors. The recent numbers from Apple, IBM and the news about Microsoft going to use ARMH chips in their new operating system is going to reflect on its earnings, which are due on 02-01-2011. The stock hovered between $15 and $20 for almost six months and suddenly got a boost in the last couple of weeks after Microsoft said it is going to design a Windows operating system compatible with ARM's chips and Goldman Sach's upgrade.

ARMH closed at $26 today and in my opinion this stock is still cheap and should be trading in the mid $40s in the next 6 months.

I would like to see how Artisan Components, which was bought by ARM in 2004 for $1 billion performed in the recent quarter. The unit, which makes the building blocks of integrated circuits, has “underperformed significantly,” says Analyst Mark Davis of stockbrokers Panmure Gordon and is behind where the company once thought it would be. But, he adds, “if that starts to move to profitability over the next 18 months, it could be a good boost for the business.”

A general Caution and Advise --As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!

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Who is Mr.Incredible?

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New Jersey, United States
Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!