ARM Holdings plc (ADR) (NASDAQ:ARMH)
The Company designs reduced instruction set computing microprocessors and related technology and software and sells development tools to enhance the performance, cost-effectiveness and power-efficiency of high-volume embedded applications.
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A huge percentage of embedded devices are built with ARM IP inside. They continue to dominate and while the PE is not low they continue to innovate.
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I believe this to be one of the most under valued stocks in the market, the miss understanding is not based on the revenue, but what they have built in the software and technology and R&D side of the business. They spend north of 20% annually on R&D, now that to me is the ticket to success. Plus they do not manufacture anything they are like Qualcomm license the product and get royalities. They have what I believe a true chance to be a microsoft technology with a potenial for what I believe a monoply in there market segment. The royality stream from the this company is going to continue to grow in a very big way. Please folks help me out and do the research on this company and see if you can prove me wrong. I do not mean this in an arrogant ( I hope I spelled that right) way. It is kind of like you see the potential as clear as day when you do the research, but nobody else see's what I see? Everytime I research this all I see is gold. I believe it is truly one of misunderstood companies in regards to Wall Street anaylst. Or maybe that should not be a surpirse.
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Rediscover?
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Great company and management team
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Great Business model of reserach and then sell the IPR for manufacturing . ITech IP used in most small consumer electronic devices today
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Not the "rule the world" stock I once thought, it nevertheless is the future of the embedded processor market, the heir to the throne of the Intel 8051 et al
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Chip maker growing faster than other chip makers. Good in PDA's and cell phones
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I'm in two minds over ARM. It's defintely worth $7.50 but beyond that I'm skeptical. The ubiquity of their product is offset by their lack of pricing power. Add in their lack of shareholder concern , and share buyacks solely to offset future option grants, and I think management have there own interests well ahead of ours. I'm not ready to sell in my real portfolio but I'm critically assessing the situation.
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MANY applications moving to this processor. The volumes will finally make this stock move.
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In the short term ARM will benefit from the expansion of mobile phone use in emerging economies. I believe this is its strongest area currently. However, in the longer term ARM must diversify into other embedded markets, where there may already be strong incumbents.
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