While it is easy to buy technology companies on the fundamentals when they are going up without knowing much about the company, things are much more tricky when RS becomes poor: the investor suddenly wants (and needs) to know a great deal more. The difficulty here - given a ?35% commitment to the fad Go-Pro and the known unknowns of who is mounting a competitive ambush with better widgets, is establishing a growth rate for calculations. Putting a valid figure on growth rate is basic for us growth company investors; without it we can only hazard guesses. Any rationales here for a usable growth rate?

I fully understand the opportunity of drones: in a word, vast. But that does not necessarily mean AMBA continues to be a certain part of it. We go on what we know and the price of the stock has to reflect the absence of a future working growth rate. My reply to the question ‘Is AMBA cheap?’ is ‘I don’t know. It has been so far!’

Ah, the joy of tech. investing. Imagine the companies looking at drones and Ambarella and thinking ‘we can do that - throw a pile of money at this one.’

Or maybe take over AMBA. Hmmm.

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