Welcome to the Board. I'll take a look at my charts over the weekend, and let you know what I come up with. And be sure to pop into the chatroom during the day, shares like ARM are bread 'n butter stocks to those guys 'n galls. correct me, if I'm wrong..
just a to say that it perhaps you ought to give some indication about your trading or investment experience and objectives before asking if a share is worth buying!
There may be many reasons for buying a share based on short, medium or long term holding periods and whether or not a company is fundamentally sound or just has good technicals.
If you are a long term investor I'd wait until the current resistance levels are broken through (6000 on the FT100 etc.) or you feel happy that the market has formed a bottom.
If you are a short term trader maybe it's worth putting forward your arguments for buying or selling and see if people agree with you or not?
Sharky is one of the administrators on the board and I'm sure that he will give you some good advice however be careful of taking investment advice from strangers who may well have their own hidden agenda!
I'm sure all on this BB give there thoughts and opinions with the best will. Listen to what Darth say's, and you won't go far wrong.
In my opinion this is the place to get the best help and advice.
I've got the same thought's as you about ARM and I'm going to give it some attention over the week-end.
You've got some good advice there.
I'm following Arm and got back in at 353. I'm taking a chance and will stop very tight if it goes the wrong way on Monday. I just can't figure the MMs on ARM... they've either got half a dozen aces up their sleeve, or simply got it wrong, which i find hard to believe.
I don't think TA can help on this it's a pure gamble short term... long term is another matter.
LONDON (AFX) - Shares in ARM Holdings PLC were slipping in midmorning, as a
trend towards profit-taking in the semiconductor designer was encouraged by some
concerns amongst dealers on what impact yesterday's U.S. federal court ruling
would have on ARM's patent protection.
The concerns follow a court ruling to award punitive damages of 3.5 mln usd
against memory chip designer Rambus Inc for using fraudulent means to file
patents for high-speed memory technology.
The jury agreed with arguments presented by Infineon, the German chipmaker,
that Rambus had deliberately hidden its intention to file patents from JEDEC, an
industry body charged with agreeing memory standards.
This landmark ruling against an intellectual property company sparked new
worries on ARM's patent enforcement, with one broker said to be advising clients
of the conflict in a traders note distributed this morning.
ARM is currently pursuing a multi-million dollar patent infringement lawsuit
against California-based PicoTurbo Inc, which is marketing ARM-compatible
processor cores allegedly breaching seven of ARM's U.S. patents. The Rambus
ruling may lessen ARM's chances of winning this, and allow other firms to clone
However, some analysts were unconvinced of the significance of yesterday's
"It's a specific situation and does not bleed through to the IP companies --
but it is still a case where a patent was revoked," commented analyst Laura
Baker at UBS Warburg, who maintains a 'hold' recommendation on ARM's stock.
"There is certainly a read-through there for IP companies, but it has more
of an impact for the big picture on 3G telecoms companies where there's real
arguments on who actually owns the key parts," she continued.
Today's weakness in ARM shares was attributed by the analyst more to profit
taking, after the stock went up to 400 pence "on nothing in particular".
Baker added that a teach-in held by the company yesterday was "all esoteric
stuff", focusing on the Java product, the next generation portfolio and the
The management gave no financials or outlook on current trading at
yesterday's meeting, she added.
Neither ARM nor its house brokers were immediately available to comment.
At 1.18 pm, shares in ARM were leading the FTSE 100 lower, dropping 37-1/2
pence to 355-3/4.
Makes you wonder what really bad news would do to the price.
I fear that MM's are just reflecting that ARM is one of the many tech stocks that simply correlates highly with the NASDAQ. According to my calculation over the the last 28 trading days the correlation factor is 0.9338 which is quite close to one (being absolute dependance).
Over the last 100 trading days the correlation factor is 0.9172 with only a dozen or so stocks are correlating higher.
Whatever the merits of ARM's business might be it's valuation seems strictly tied to the performance of the NASDAQ.
On that basis we might expect a fall on Monday morning
and then hope for support at 325p (when the nas comp hits 2000).
This comment from Times might also help to understand why arm tanked on Friday...
Ruling sparks ARM exodus
STOCK MARKET BY NICK HASELL
NERVOUS chip stock investors baled out of ARM Holdings over worries that a US court ruling against a rival semiconductor designer could endanger the Cambridge-based company’s own efforts to seek damages for patent infringement in the US.
ARM is pursuing a multi-million dollar lawsuit against PicoTurbo, a California company, which it alleges is marketing ARM-compatible products in breach of its US patents. Some analysts have questioned its chances of success after Wednesday’s decision by a Virginia court against Rambus, a rival US chip designer.
Rambus must pay $3.5 million (£2.4 million) in damages after a federal judge dismissed its allegations that Germany’s Infineon Technologies infringed its patents for chip designs that help to speed up personal computers and games consoles.
One heavyweight London stockbroker, said to be Goldman Sachs, was busy alerting its clients to the potential significance of the Rambus decision on ARM yesterday. Other firms, such as UBS Warburg, were unperturbed, and said the case had no direct implications for other patent cases. ARM tumbled 43p at 350p, the biggest fall in the FTSE 100.
I looked at ARM to-day, I think if any-thing I would be inclined to short it. (only if I could sit in front of my screen all day). So for me I will just sit back, relax, and see if the FED does drop 50 points.
Only my opinion
I've traded arm many times, never on its merit however... either following or anticipating a Nas rally or intraday on L2 basis...popping in and out...I can't see a better alternative in trading arm...unless you invest in them long term risking half your money but with a possible profit of 100% or so in a couple of years...
As for the chart and indicators I agree with Martin, it's open to interpretation, you go with rsi you can easily draw 2 lines on rsi and establish an uptrend, add OBV about forming the 3rd bottom on the same level, MFI ticking up, stochastics K ticking up at the oversold level and conclude that arm is going to bounce soon...
On the other hand one can easily look at the chart and establish a down trend channel and see arm moving through...
And this is why I'd still trade arm intraday and depending on my anticipation of us markets...this stock has still got no trend of its own...with many external factors determining its direction...patent cases being the last effective one...
Point taken, to me I just did'nt like the way ARM fell out of it's channel on high volume, and falling RSI. At this point of my TA education I am trying to keep it as simple as possible and not get bogged down with to much info.
todays welcome rise in arm did not, to me, appear to reflect the intel story (see below); i felt that it was a predictable reaction purely to the USA figs overnight, and gen sentiment. Hopefully theres more reaction to follow, as this looks like a major development for months to come.
STOCKWATCH: ARM surges ahead of Intel product launch
LONDON (AFX) - Shares in ARM Holdings were leading the rally amongst
technology stocks this morning, as gains following the overnight rally on Nasdaq
were supported by reports that Intel Corp will today announce its new
communications chip technology based on ARM designs, dealers said.
According to an FT report quoting Intel, the U.S. group will show the first
experimental chips that combine different mobile phone functions at the Intel
Developer Forum in Amsterdam.
This is the key part of its to move from the PC market and into the faster
growing embedded communications chip sector.
The first chip products based on Intel's designs will appear in the first
half of next year, it said.
Intel and ARM have jointly designed and marketed cores specifically for
Intel since 1999, developing the StrongARM and XScale processor ranges around
ARM's series 10 range of designs.
The same FT report also said Intel would collaborate with British
Telecommunications PLC on a range of applications targeted at business
professionals, including a wireless based collaborative application to create
"electronic working groups" that span geographic locations and different
At 10.28 am, shares in ARM were trading up 27 pence to 374.