Wednesday, November 18, 2015

Micron Technology, Inc. (NASDAQ:MU)

Micron Technology, Inc. (NASDAQ:MU) appears to be poised for a nice bounce off this bottom. In my view, the stock has formed a bottom in short-term and I expect a move past 15.93 to take the stock towards the target of 16.74 with stop-loss at 14.62. The stock seems to be undervalued at current levels.

Gold Trades Below Support

Just as the Euro is hanging by a thread above its chart support zone, so too is gold hanging by a thread above a critical chart support zone. The bottom of that zone is the July low near $1070 with the zone extending upward towards $1080.
Gold drew a bit of support in today’s session ( Monday) out of safe haven buying tied to the horrific carnage in Paris but as is always the case with gold, rallies that come from geopolitical events, generally do not last long, especially when the underlying fundamentals for gold are as poor as they currently are.  (more)

Ambarella Inc (NASDAQ: AMBA)

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP) security cameras, telepresence cameras, and unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market.
Take a look at the 1-year chart of Ambarella (NASDAQ: AMBA) with the added notations:

AMBA started to trend higher back in December, and then the stock really took off in May. Since that time, though, the stock has fallen all the way back down to its $50 level. Over the past year, AMBA has found support at that same $50 support (green) on multiple occasions. Traders could expect some sort of bounce if the stock reaches that support again. However, if the $50 support were to break, lower prices should follow.

The Tale of the Tape: AMBA has an important level of support at $50. A trader could enter a long position at $50 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

YNDX: Time To Buy Yandex?

  • Edward Hill-Wood of Morgan Stanley commented in a note that the impact of worsening macro conditions in Russia is more than offset by a faster share shift of online advertising.
  • Hill-Wood noted that this trend benefits Yandex NV YNDX , a Russian-based search engine operator.
  • Hill-Wood upgraded shares of Yandex to Overweight from Equal-Weight, with a price target raised to $20 from a previous $18.
  • Russia's ongoing macro-economic woes have frightened some from investing in Russian-based companies However, Edward Hill-Wood of Morgan Stanley commented in a note that Russia is experiencing a shift of advertising online, proving an opportunity for Internet-based firms, like Yandex.
    "In a nutshell the structural shift of usage and advertising online is accelerating well ahead of market expectations," Hill-Wood wrote. "Russia is shifting from a laggard to one of the leading Internet markets globally in terms of user monetisation. This shift has been particularly rapid since 2Q 2015, perhaps aided by a change of behaviour caused by the economic recession."


    Hill-Wood offered several key points to support Yandex's growth profile:
    • 1. Yandex highlighted a stabilization in trends during its third-quarter conference call.
    • 2. Companies such as AliExpress, PayPal Holdings Inc PYPL  and Inc(ADR) JD  are all "growing strongly" in Russia. Meanwhile, a potential entry of, Inc. AMZN  and Netflix, Inc. NFLX  offers Yandex, the largest advertising business in Russia, new sources of advertising growth.
    • 3. The introduction of a new VCG auction has been "well executed" and could provide a new source of revenue upside for Yandix.
    • 4. Yandex.Market has seen benefits from internal restructuring and additional marketing.
    • 5. Yandex is seeing "greater traction" in non-core products, such as Taxi and, in addition to higher traction internationally in Turkey.
    Despite a clear path to growth, Hill-Wood noted Yandex is heavily impacted by a weaker ruble. However, Yandex's stock has "heavily" de-rated over the past two years and is now trading at 10.7x EBITDA versus a longer-term average of 13-15x.
    Shares of Yandex were upgraded to Overweight from Equal-Weight with a price target raised to $20 from a previous $18.