Long Ambarella (AMBA)

BurrardLucas_Drone_2783693a-310x165.jpg

(NASDAQ: AMBA) Even with a terrorist attack and some Friday panic, stocks are moving higher today. On the charts, they do have quite some room to bounce. My thought is that we will ultimately roll over either into the fed decision or as a result of it. Regardless, I covered my shorts and bought a few stocks.

I think AMBA is an a good spot. Risk down to $49, and the trade has decent risk reward.

AMBA isn't a one product/single trend story. They benefit from Home Security, Police Body Cameras, GPROs, Drones… all great stories.

  • A lot of short interest.
  • >25% EPS growth over the next 5 years trading at ~15X forward earnings
  • terrorism = more investment in defense = more video security = more AMBA