Ambarella, Inc. (AMBA)

[robi-1-kenobi]

Yes I saw that. The part I didn't like was SA writer saying AMBA was vulnerable to a larger competitor.

Everything I had read previously was that they had a solid lead with strong tech & patents. If that's not true, maintaining their phenomenal growth and high valuation may be at risk. It would only continue as long as others stay out of the market.

To me, an individual stock is only worth holding if it holds promise to diversify with good uncorrelated returns where ETF choices are limited, or it can do better than a 2x leveraged etf in same sector.

AMBA doesn't provide diversification for me and now looks on shakier ground - for continued growth, valuation, and share price. My original reason for buying is now in question. I still think it is a good company that may continue for a long time to deliver on growth, but I have less confidence in that now.

So, as you probably guessed, I sold my shares today.

I will watch for a chance to buy something else - probably MORL to diversify in climbing real estate with very high dividend.