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Monday, February 14, 2011

Happy to have exited ARM Holdings short last week at a profit, after it hits ten year high

ARM Holdings (ARM) rose 6.5% or 40p to a ten year high today as Goldman Sachs raised its price target to 800p saying a valuation of 23 times 2015 earnings was justified for a “strategic asset”. Goldman said that whilst ARM was earning 1 per cent royalties at the moment, newer deals had a charge closer to 2 per cent. Looks like the directors sold their shares at the wrong time last week and a relief for me that I closed my short at a profit at less than 590p with the shares hitting 651p today.

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