“ARM Yourself “: Extraordinary profits from ordinary shares, winning stock market strategies.

Last month I discussed the incredible opportunity and growth offered investors by the phenomenon that is NVIDIA.

Now investors have a new opportunity to consider.  ARM’s IPO (Initial Public Offering) debuted on the Nasdaq on the 14^th September.  The shares were priced at 51 dollars per share.  On the first day of trading the shares closed at 63.59 dollars for a massive rally of 25%.

ARM is one of the most important semi-conductor stocks in the world.  ARM designs the architecture used in about 99 percent of all smart phones and other devices – but both turnover and profitability have declined over the last 12 months.  This is something that makes pricing or valuing the company so much harder.  However, value is not about the past but about the future and the future for ARM is very bright.

Some of the largest companies, AMD, Apple, Google and Nvidia participated in the listing adding to the excitement.

Early this month came the announcement that ARM had extended the agreement to supply Apple with the architecture it uses extensively in the iPhone, iPad and Macs.

Another joint venture is creating further excitement.  ARM is working with NVIDIA to deploy technology to run AI and ML (machine learning) workloads in billions of devices.  Analysts are very bullish on Nvidia’s prospects amid the AI growth story and most recommend the stock as a strong buy.

The burning question is when does all the grandiose forward-looking statements actually translate into cash in shareholders pockets.

ARM is trading at 110 times earnings – for a company that in its last reporting statements showed declining revenue and earnings.  If this trend is not reversed soon shareholders will suffer huge losses.

NVIDIA is different.  This is a company with cash and revenue forecast to grow by 170 percent in the next period.  Jensen Huang, the CEO, says for NVIDIA there is great earnings visibility going forward.

Both companies are highly rated and regarded but it remains unclear as to which company will turn out to be the best investment.

If you are not happy with your portfolio performance or would like a second opinion, please do not hesitate to contact Fenestra for a free, independent, objective and confidential review of your portfolio.

Protect your wealth.  Optimise your returns.

Contact Fenestra now!

William Meyer – 0796244031