Check out my recent article on Seeking Alpha giving an updated rationale behind our fund’s Short position in ARM Holdings:
Arm Holdings: A Terrific, Overvalued Business
by Yaron Ron Reuven
Arm Holdings (ARMH) is a European Intellectual Property firm that designs low powered microprocessors that are used in the majority of the mobile devices around the world. ARMH is a fabless company, meaning that they do not actually manufacture their chips, but rather license their technology to companies like Apple (AAPL), Qualcomm (QCOM), Nvidia (NVDA), Samsung and many others. Unlike other well known semiconductors such as Intel (INTC) or AMD (AMD), ARMH’s two sources of revenues come from the Royalties and Licensing (R&L) fees they receive for each device that is using their low power chip technology. ARMH’s stock has had a major run over the last several years, and has become another company that is priced to perfection. read more »
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Hi Ron,
Hope your new venture is going well. I agree with your ARMH assessment. Good call on the position last year.
Joe