AMBA is up big time today (16%+) on pretty heavy volume for no material news. Anyone know why? I checked out GPRO and they are down 1.5% today.
Sincerely,
Charlie
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Gopro is down on news that Polaroid is suing them. Not aware of any news on AMBA though. Also noticed the day’s surge and wondered as well. Perhaps we’ll learn something soon enough.
AMBA is up big time today (16%+) on pretty heavy volume for no material news. Anyone know why? I checked out GPRO and they are down 1.5% today.
I’d like to think that maybe people have realized that AMBA is NOT tied at the waist to GPRO’s future, maybe somewhat affected by it, but won’t necessarily move lock step with it.
But the cynical side of me says more than likely, someone knows something we don’t. At least it’s going the right direction!
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It seems to be from an analyst who opened with coverage with an “outperform” rating and a $70 price target:
What: Shares of Ambarella (NASDAQ:AMBA) were up more than 13% as of 3:00 p.m. Tuesday on the heels of a positive analyst initiation.
So what: For perspective, Ambarella stock has been hammered over the past two months, first after the video chip maker offered disappointing guidance along with its strong third-quarter report in September, then last week on concerns over the possible negative implications of light guidance from prominent customer GoPro (NASDAQ:GPRO).
But on Monday, shares of Ambarella closed up around 5% after analysts at FBN Securities initiated coverage with an “outperform” rating and a $70-per-share price target – a more than 20% premium to Ambarella’s trading price as of this writing. Today’s move appears to be at least in part driven by a continuation of that momentum.
From http://www.fool.com/investing/general/2015/11/03/why-ambarel…
- Matt
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There’s also the fact that AMBA has quite a large short interest (close to 5%, I think), so as the price goes up shorts get covered in order to preserve profits or minimize losses. In any case, the short coverage drives the price up more.
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Last night CNBC highlighted bullish call buying in AMBA.
Rob
FWIW, the short interest is closer to 50% than 5% (45.86% as of 10/15/15, according to Yahoo).
Cheers,
banjr
Taser just announced they are using Ambarella in their next generation body camera:
http://www.prnewswire.com/news-releases/taser-introduces-nex…
And the taser body camera is very popular with police departments.
Good news!
Fool on!
Judy
Long on Amba
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Forbes: “Mother of all squeezes”
http://www.forbes.com/sites/jaysomaney/2015/11/03/mother-of-…
This is not a Forbes column, but a “Contributor”…
Back on September 10, 2015, I had posted about the mother of a short squeeze possibility in Ambarella AMBA given its then 29% of its float short.
Well, today you are seeing the effects of that squeeze but now almost half of its float is short as of October 15 (latest short interest available from www.Nasdaq.com)
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