Do you have a fundamental reason why do you think a company growing revenues at a CAGR of 16% and net income at a CAGR of 41%, both over the last 36 months, deserves to be valued at TTM PE of 17? In today's interest rate environment, Ben Graham's value formula would suggest a PE of more about 27. The current price is indicative of a company expected to grow 6%. The price appears out-of-sync with the company's performance.
If you rely on technical analysis alone, I'd still like to hear your answer to the question.
Jag, so what fair value would you get using the Graham formula? Just curious. I found out about AMBA from IBD. I remember looking at Ulta Salon when it was trading in 18 range from IBD. Salons were women have their hair done and buying beauty supplies. Stock is over 100 dollars and I got wind of that one from IBD. I wish AMBA was in mobile but its not. What other stocks are you looking at? The problem with IBD is they post stocks that have had nice runs and sometimes they go south real fast. But if you get a early grower with increasing earnings you can hit it out the park. I own GTAT which I think will have better days ahead.