Version 2-11-2010

LIFE Analysts Name Date 4/11/14

Company Sector Technology
Ticker AMBA Industry Semiconductor and Materials
Last Trade $26.59 52 Wk L/H $12.11 $36.49
% Between 52 Wk L/H 59.39% Short Interest (% of Float) 29.60%
Dividend & Yield NA NA
Valueline Ratings 2 High Projection 36.49 Low Projection 24.69
Brief company description:
Overall CANSLIM Score 81
Life Student's Recommendation
Buy Student Recommendation CANSLIM Recommendations
200 # of Shares to Purchase Low-Sell High-Sell
$26.39 Purchase Price $24.46 $31.91
$31.67 Up Sell Price
$30.61 Up Alert Price
$24.28 Down Sell Price
$24.81 Down Alert Price
Qualitative Factors:
LIFE - Stock Analysis Recommendation Form
***Ensure that all Cells are Filled Out before presenting!!!***
Ambarella Inc.
Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display
worldwide. The companys system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system
functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions
enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, Internet Protocol (IP) security
I think this stock is an obvious buy. I think it is time that we add a more aggressive stock to our portfolio because I think we have been
playing it relatively safe lately. Upcoming deals will help boost the stock price and Go Pros upcoming IPO will most likely help Ambarella.
Jack Doyle
Current News:
Industry/Competitor News:
Brief SWOT analysis of the company :
Social Responsibility: How does this this company stand regarding SRI?
Not Included Calavert Social Responsibility Index http://www.calvert.com/sri_calvertindex.html?format=&letter=All
Not Included Domini Social Equity Fund http://www.domini.com/domini-funds/Domini-Social-Equity-Fund/Portfolio/Schedule-of-Portfolio-Holdings1.doc_cvt.htm
Not Included MMA Stewardship Solutions http://www.mma-online.org/m6.aspx?id=2504&token=1
Not Included Morningstar Stewardship Rating:
Not Included Findings from Annual Report, Yahoo, MSN, WSJ
Issues:
Community
Corporate Governance
Diversity
Employee Relations
Environment
Human Rights
Product
Comments on SRI
Possible upcoming partnership with google. Google tasked the company with producing a wearable pendant camera that google helpouts
users can deplor for that service. Googles current video processor partner is Texas instruments but if the partnership goes to ambarella,
this will do nothing but help AMBA
Strength: Associated with well recognized brands. Large product line include products in the fields of security IP cameras. Wearable
cameras, sports cameras, automotive cameras and broadcast infrastructure solutions. Weaknesses: Low brand name recognition.
Competing with larger names like Texas instruments. Highly competitive field. Opportunites: New upcoming deal with Google can
generate huge profits. and possible more work overseas. Threats: Other small agressive tech companies.
Not much going on in the industry except the possible partnership steal from Texas instruments. TI being such a large company, this may
not hurt them so much but could be big profits for AMBA
Non Issue
Non Issue
Non Issue
Non Issue
Non Issue
Non Issue
Strength
Nothing to prevent investment
Legend
Valueline Lib. Edition Investors.com
Wall Street Journal MSN Money
Yahoo Finance Life Analyst
Human Rights- What are the working conditions of the company? Are there labor standards set in place? Enforced child
labor laws? Does the company exhibit abusive conditions? What are the living standards of those employed
(compensation standards)?
Product- Are the company's products safe, useful and beneficial?Do they rule out harmful and addictive products? Is
the quality and overall safety of the product acceptable? Are the products widely available (not discriminating the sale of
their products from low income communities)?
Community- Does the company have good community relations? Are they giving creative and generous donations?
Listening and acting on the needs of community-based organizations? Displaying honest and clear relations with both
local and national government? Paying a fair share of taxes?
Corporate Governance- Does the company allow for voting procedures and provisions for minority shareholders? Are
corporate boards effective and responsive to shareholders? Is executive pay formulated so as to encourage companies
to grow sustainably?
Diversity - Is there diversity related to gender, ethnicity or race, age, sexual orientation, disability, economic or class
background, religion, or political opinion in all individuals employed by the company, including suppliers?
Employee Relations- How does the company rate on labor relations? Are they Investing in the health and development
of their employees? Is there an appropriate level of compensation and benefits?
Environment- Is the company in compliance with government regulations? Is it working to reduce its impact on the
environment?
Not making any real waves in any area, this is not bad. They keep their heads down and make solid products
LIFE Analysts Name Date 4/11/14
Company
Current Quarterly Earnings Weight 20% Score: 3.5
***Use Diluted EPS Excluding ExtraOrd Items*** 5 best; 3 neutral; 1 worst
% Change from previous year's quarter
Current Year QTR Date Enter here Dec-13
Expected Dec-13 Sep-13 Jun-13 Mar-13
EPS (Current Year) 0.13 0.18 0.3 0.21 0.16
EPS (Previous Year) 0.16 0.13 0.25
Qt/Qt % EPS Growth -18.75% 38.46% 20.00%
0.00%
Current Quarter Sales Dec-13 Next Earnings Release Date
Dec-13 Sep-13 Jun-13 2-Jun
Sales Current Year $40 $46 $37.70
Sales Previous Year $32 $36 $28
26.98% 28.85% 34.64%
No Qt/Qt up 25%-50% for at least 3 quarters
Yes Current earnings growth supported by 25% sales increases
Comments:
Annual Earnings Increase Weight 20% Score: 4.5
% Change from previous year 5 best; 3 neutral; 1 worst
Annual EPS Date Expected Sep-13 Sep-12 Sep-11 Sep-10 Sep-09
EPS 0.85 0.6
Yr/Yr % EPS Growth -100.00% 41.67%
No 25% Minimum Growth of earnings Yr/Yr
Yes ROE 17% or better ROE = 19.10%
Average Annual Growth
#VALUE!
***Ensure that all Cells are Filled Out before presenting!!!***
AMBA is pretty stable in terms of EPS they are expecting a troubling quarter but they have
consistantly outpreformed their expected eps. Sales is also very good and consistant.
Ambarella Inc.
Jack Doyle
Comments:
With the next years EPS still being speculated, I do not know for sure what the years growth
will be, but AMBA has been exceeding the expectation when it comes to EPS so I dont doubt
they will still have a high growth.
New Products, Mang, Highs Weight 10% Score: 4
5 best; 3 neutral; 1 worst
Date 4/11/14 Last Trade $26.59 52 Wk High 36.49 $
No
Yes
No New Management
Information about New Products or Management
Comments about how this will affect the stock
Supply & Demand Weight 10% Score: 4.5
5 best; 3 neutral; 1 worst
Average Daily Volume Mkt Cap Shares Out Cap 43
1,399,230 767.04M 28.43M Small (300M-2B) -
Look under your company under Insider Transactions
No Debt/Equity: NA
No Industry Debt/Equity: 0.21
No 29.60%
Comments:
Leader or Laggard Weight 10% Score: 3
Stock Performance 5 best; 3 neutral; 1 worst
AMBA INTC DJ Index
Coming out of a price consolidation
New Product
A price consolidation or base can be an indicator for future price advances. A price
consolidation period generally lasts around 7 weeks but can last as long as 12 months.
Recent Stock Repurchases
Insiders are buying up significant amounts of stock
Being on the cutting edge of their industry and being involved in many different sectors like
security and personal cameras, this company still has a lot of room to grow and since
technology is always changing, they will constantly be updating and improving their products
% Held By Insiders
%, Last 6 Months
Large amounts held by the insiders. This is a very good thing because they obviouly believe
in their stock. Also it is trading right in the sweet spot in terms of average daily volume.
Short % of Float: Recent Stock Splits
% Chng % Chng Difference % Chng Difference
3 Months -7.4% 3.5% -0.11 0.0% -0.07
6 Months 37.3% 14.7% 0.23 5.0% 0.32
Year-to-Date -17.9% 2.5% -0.20 -12.7% -0.05
12 Months 104.1% 24.5% 0.80 11.5% 0.93
2 Years #VALUE! #DIV/0! #VALUE! 22.8% #VALUE!
5 Years #VALUE! #DIV/0! #VALUE! 122.9% #VALUE!
Yes Industry Leader
Comments: No Listed Competitors. Im not quite sure how to feel about this. The yahoo page did not list
any but this company is very cutting edge and is strongly associated with Go Pro which is an
ever growing brand
Institutional Sponsorship Weight 10% Score: 4.5
5 best; 3 neutral; 1 worst
% Change in Institutional Shares Held -
% of shares held by all Inst & Mutual Funds 10.10% Number Inst & MF 43
Yes Mutual Fund Support (At least 10)
Comments:
Market Status: Weight 10% Score: 3.5
5 best; 3 neutral; 1 worst
Market favorable for this security
Yahoo Beta 1.526 Current Ratio 6.98
AMBA Industry Rel to Industry S&P 500 Rel to S&P 500
Price/Earnings 31.03 34.0 0.91 #DIV/0!
Price/Sales 5.2 3.3 1.55 #DIV/0!
Price/Book Value 4.99 2.9 1.72 #DIV/0!
Price/Cash Flow 23.87 27.6 0.87 #DIV/0!
PEG Ratio NA
Cash 143,397 - Free Cash Flow NA
Comments:
Analysts Ratings: Weight 10% Score: 5
(Strong Buy) 1.0 - 5.0 (Sell)
Average Rating Rating Rating Rating
2.38 2.33 2.50 2.30
Long-Term Debt
Not too bad in terms of industry relation especially in the P/E area. Being a new company
though it is hard to determine how long these ratios will last. But in terms of current ratio and
the Beta, AMBA is looking very good. One problem is that there is not PEG stated so it is
hard to tell how agressive this stock will grow.
A little low by the CANSLIM standard but since less people sponsor this company this could
mean large profits for us. Jumping in before the is known by a lot of people can help turn us
the largest profit
Average WSJ MSN Money Yahoo
Number of Analysts 6 6 6

Overall CANSLIM Score: 81