ARMH – Arm Holdings Limited

ARM Holdings has been a Core Position for us over the past 8 – 10 years, though not the past 2 years, as we thought they were in kind of a rut.

Well… they are clearly out of their rut and finally getting the attention they deserve.  ARM processor design IP is in more than 60% of all cell phones on the planet, and there are now an average of 2.4 ARM designed processors in each of those phones.

We believe they are entering what’s known as the hockey stick growth phase…  We will be buyers of ARMH on a clean, high-volume BO above $10.00

We are looking at the Synthetic Long JUL 2010 – 10 Call/Put Combo.  SELL the Puts to buy the CALLS.  Today we could have entered this position for a ~$.30 CREDIT and at a $.10 DISCOUNT to the closing price @ $9.81

Keep an eye on ARMH.  They are a young Gorilla in the mobile market and are expanding their IP reach into new technologies, much like RMBS without the litigation.

Coach BD

02/02/2010 at 8:22 pm
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