Tag Archives: stocks

Chipmaker Earnings Surprises Send Ambarella, Broadcom Opposite Ways

Ambarella ( AMBA ) stock was down nearly 6% in after-hours trading Thursday, after the maker of image-processing chips issued disappointing revenue guidance while topping views for its fourth quarter. Apple ( AAPL ) supplier and IBD 50 list growth stock  Broadcom ( AVGO ) was up more than 7%, however, after its quarterly report beat estimates  despite slowing iPhone sales. Ambarella, which rose 2.2% in Thursday’s regular session, is a supplier to action-camera maker GoPro ( GPRO ). “During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets,” Ambarella CEO Fermi Wang said in the company’s earnings release. “This was largely offset, however, by a continued decline in the wearable sports camera market.” Ambarella is working to diversify its end markets and customer base. For its Q4 ended Jan. 31, Ambarella said revenue rose 5% from the year-earlier quarter to $68 million, and earnings per share fell 5.9% to 64 cents. That beat the view of analysts polled by Thomson Reuters, who on average expected EPS of 48 cents on revenue of $66 million. But Ambarella gave lagging guidance for its fiscal Q1 2017. It sees revenue of $55 million to $57 million and net income of $8 million to $10 million. Analysts polled by Thomson Reuters have been expecting revenue of $62 million, and net income of just over $14 million. Ambarella gets an IBD Composite Rating of 74 and Broadcom a 98 out of a possible 99, factoring in a variety of metrics such as earnings growth and stock-price gains. Several high-rated chipmakers have been approaching buy zones lately with the market returned to an uptrend, including the two chipmakers on the IBD 50 list: Broadcom and Nvidia ( NVDA ), which makes chips for computation-intensive processes including graphics, gaming and self-driving cars. Broadcom ended Thursday’s regular trading session about 9% under a buy point from a cup base. RELATED: Can IBD 50’s Broadcom Drive Chip Stocks?

2 More Multialternative Funds Decide To Liquidate

A recent article in the Economist magazine predicted that 2016 could be the first year since “the worst of the financial crisis” that more hedge funds are closed than are launched. Mutual funds and ETFs that pursue hedge-fund strategies – so-called “liquid alts” – have also been shuttering at an accelerated pace, and two more recently announced plans to liquidate: the Collins Alternative Solutions Fund (MUTF: CLLIX ) and the Lazard Master Alternative Portfolio (MUTF: LALTX ). Collins Alternative Solutions Fund According to a February 19 filing with the Securities and Exchange Commission (“SEC”), Collins Capital Management advised the Board of Trustees governing the Collins Alternative Solutions Fund to close and liquidate the fund. New investments were halted immediately, and the fund was planned to be liquidated entirely by February 26. The fund was managed by a number of external sub-advisors. Based on data from Morningstar, the fund had assets of $21.7 million as of the end of January, and returned -14.26% for the 1-year period ending January 31, 2016. Lazard Master Alternative Portfolio On February 24, Lazard announced plans to liquidate its Lazard Master Alternative Portfolio. The fund was closed to new investors as of that date, and it was expected to liquidate on or around March 1. According to Fund Action , Lazard has joined “a long list of providers who have seen funds fall by the wayside after failing to garner enough assets in their alternatives portfolios.” The fund, which debuted on the first day of 2015, generated returns of +0.30% in its first year of operation, but then lost 4.09% in the first two months of 2016. These year-to-date returns through February 29 ranked LALTX in the bottom 15% of funds in its Morningstar category, and undoubtedly sealed its fate. As of the end of February, the fund’s assets under management had dwindled to just $16.9 million. Past performance is not an indicator of future performance. Jason Seagraves contributed to this article.