ARM trade ideas
ARM long seup scenario
ARM long scenario
stop and tp1 tp2 is marked on the chart..
based on harmonic theory
thanks
ARM holdings - long at 51$ IPO priceARM´s IPO hype was only of short duration. Today the market have almost reached the original issue price of $51. Here I'm going to open a small long position (I will add longs after a consolidation or reversal). I expect the price to go up to the gap close. There I will put my take profit and also place a short order.
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🔥 ARM IPO: Worth the hype? Should I chase? What even is it?ARM DD:
Before you read this, understand that trying to buy IPOs when they begin trading isn't guaranteed and if you market buy, you will get roasted. It's not good to chase IPOs. No matter if this is the next NASDAQ:AAPL NASDAQ:TSLA and NASDAQ:AMZN combined, do not chase and only make wise and calculated decisions while trading.
I've been waiting for this IPO for a while. It's finally here. It might be the most over anticipated IPO in a while. Trade carefully. Do not chase blindly. Have a plan. Trade the plan. If it doesn't come, move on.
If you learn something or want to trade with me, give me a follow & join my community. Thanks.
IPO valued @ $55B.
Around $51 per share.
They are only releasing 9% of the total shares to the public. So it has a tiny float.
SoftBank is the owner, they bought ARM 7 years ago.
The floor for me is 40B USD valuation. Meaning, around $38.50 is support. Where did I get that number? NVDA was closing on buying ARM for 40B USD in 2020.
NASDAQ:NVDA , NASDAQ:INTC , NASDAQ:AMD , NASDAQ:AAPL , NASDAQ:GOOG , TSM, Samsung, are all interested in investing in ARM.
What does ARM do?
ARM is not a chip manufacturer.
ARM designs chips & system processors & holds patents to chips and they license their technology to other big tech like AAPL, NVDA. Hence, NVDA wanted to buy them for 40B USD.
THE POSITIVES:
SoftBank bought out someone's 25% stake in ARM recently. For 16B USD. That puts it at a FWB:64B valuation in their eyes. That means the owner of ARM expects ARM to surpass 64B USD.
NVDA CEO loves ARM, but NVDA failed to acquire it.
NVDA CEO has been selling NVDA. Around 150k shares this year. Last sale 14M USD on 9/11/23. IMO he's freeing up to buy ARM @ IPO. Remember SoftBank is a 90% owner. Everyone who wants it gets it at IPO. Yes, even NVDA CEO.
The float is tiny, and asset managers .
NYSE:TSM expressed interest of 100M USD investment
This might be the most hyped IPO in a while.
THE NEGATIVES:
SoftBank is a known dumper.
SoftBank bought ARM in 2016 for $32B. They tried flipping it in 2020 for 40B USD to NVDA. So they were happy with a 8B flip USD in 4 years. Sus. Shows signs that if ARM does well, they'll unload.
Because SoftBank are known dumpers, once they dump one time, investors will get shook.
Their net income is low. Under 550M.
Their revenue is around $2.7B.
Their net income dropped YoY.
Again, I will evaluate if I'm buying this and post my entries/ exits in my community. Welcome to join.
Stay tuned.
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 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:
Welcome to join my community. Link below.
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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