Our first pick is a semiconductor company that just closed its acquisition of software company Oculii. The company will report earnings on November 11; current estimates are EPS of $0.49 on revenues of $90.35 million. Our second recommendation is some profit-taking on a previous idea.
Ambarella, Inc. (AMBA)
From Cabot Growth Investor
Ambarella was hit hard today on the market’s weakness and news that its CFO is taking a health-related leave of absence. Again, we’re not complacent, but even after today’s sharp plunge, the stock is still a few points above its 25-day line (now at 177.5) because of the recent huge run. We’ll be watching closely, but (a) the uptrend is still intact, and (b) with “only” a half-sized position and a solid profit we advise giving the stock room to maneuver. If you don’t own any, we’re OK starting a small position here or on further dips. BUY A HALF
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, November 10, 2021
Sell: CrowdStrike Holdings, Inc. (CRWD)
From Cabot Growth Investor
Updated from WSBD 839, March 18, 2021
The major indexes are starting off the week on a decent note—as of 10:15 am EST, the Dow is up 74 points, and the Nasdaq is up 3 points. But growth stocks are lagging, and some names are cracking near term.
In the Model Portfolio, in fact, we’re going to take our medicine on CrowdStrike, which is flashing abnormal action after yet another analyst downgrade today that cited increasing competitive pressures and slowing growth in the endpoint market. As always, we care less about what analysts say than what big money managers do, but after attempting to break out twice (both times rejected) and today’s huge-volume selling, we’re going to (relatively) quickly cut our loss and look for greener pastures. SELL
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, November 15, 2021