Buying ARM bull flag at 62.15Nice opportunity to buy softbank's arm ipo here on first proper pullback to support.
Bull flag play up to descending flag trend line.
ARM trade ideas
ARM IPO- big price for questionable growthARM made .54 eps in 2022 and .51 eps in 2023. at 51 cents eps, its 124 PE.
Revenue per share current is 2.60 revenue per share, giving a price to sales over 20 PS.
Its unclear if ARM is growing sales and earnings at a rate that justifies the current premium.
Possible multiples examples:
if pe goes to:
20pe x .51 = 10.20
30pe x .51 =15.30
40pe x .51= 20.40
so clearly there is some high growth rate implied at the current price.
Implied growth rate is in the 30% to 60 % annual growth range.
If its not a grower, is it priced as a tech hedge? in case other firms buy it?
From a value and growth investor perspective, the math doesnt add up.
Secured +10% on ARM, kept under 1/2 position. ⚠️ LOW FLOATERDrop a like and follow to show your support! Thanks.
For bulls and bears alike, remember this is a LOW FLOAT. If you are shorting this stock when shares are available to borrow, remember it has a 9.3% float, is the most anticipated IPO in a while, and has clients like NASDAQ:NVDA NASDAQ:AAPL NASDAQ:GOOG NASDAQ:AMD NASDAQ:INTC NYSE:TSM and the list goes on.
That being said, if I see +10% in 10 minutes, I must sell at least 1/2 my position. Got in @ 55.XX, out at 61.XX right when I saw the 9% and 10% print.
If it goes to 100, 200, 300, I really wouldn't care because I followed my rules.
Good luck trading. Remember to create a plan and follow it. That's the only way you'll be a consistent trader.
When there's not enough data, you can use a smaller time frame for reference.
Example:
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ARM: Be careful chasing hot IPOs.NASDAQ:ARM see a lot of FOMO here..
Remember:
Don't market buy. They will fill your order as high as possible.
Don't FOMO buy. Don't force a trade.
SoftBank is a dumper. They tried dumping ARM in 2020 for a +25% gain to $NVDA. Let that sink in.
Also, don't short it. You might get roasted.
SoftBank bought 25% stake at 64B valuation recently. That means that should serve as a decent floor. The other floor is 40B which NASDAQ:NVDA would scoop up I imagine.
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