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QUALCOMM (QCOM) TO COMPETE WITH NVIDIA (NVDA) ON GRAPHICS

February 2, 2011

Traditionally, NVIDIA (NVDA) is a manufacturer of graphics cards marketed under the name GeForce. Typically, low end PCs and notebooks offer graphics capabilities integrated with the CPU. The high end units offer better graphics performance by utilizing separate graphics chips from NVIDIA or Advanced Micro Devices (AMD). Unfortunately for NVIDIA, Intel (INTC) is introducing in its new Sandy Bridge processor integrated graphics capabilities, which are on par with NVIDIA chips. NVIDIA is expected to lose as much as half of the traditional business as the new chips from Intel become widely available. In spite of the foregoing harsh reality, NVIDIA’s stock

ELECTRONIC ARTS (ERTS) EARNINGS DATA IS A TRIGGER TO SHORT SELL GAMESTOP (GME)

February 1, 2011

Image by Rebecca Williamson via Flickr Electronic Arts (ERTS) earnings reveal that 30% of the revenues were from the games downloaded by the consumers. It appears that the era of shipping games on disks is coming to an end. The biggest retailer of video games on disks is GameStop (GME). GameStop may go the way of Blockbuster. Blockbuster is the once mighty chain of video rental stores that ended up declaring bankruptcy. A trade to short sell GameStop has long passed all the screens of the ZYX Change Method, but we have been waiting for the trigger event. Now data from Electronic

QUALCOM’S $QCOM EARNINGS CALL HAS A MESSAGE FOR NVIDIA $NVDA FANS

January 27, 2011

We have been writing on this blog about the competition that is coming to Nvidia’ Tegra chip. Lately, after the Consumer Electronics Show, investors have been enamored about NVDA adding graphics capabilities to an ARMH core. In their exuberance, investors and gurus have mostly ignored the upcoming graphics capabilities fro the likes of QCOM. On Qualcomm’s earnings call, CEO Dr. Paul Jacobs, mentioned Microsoft’s MSFT plans to build the next version of Windows for ARM Holdings ARMH -designed processors, and Microsoft demonstrated Windows on Snapdragon processors at the recent Consumer Electronics Show. ‘œWe have a strong working relationship with Microsoft,’ he said.

MORE ON NETFLIX $NFLX

January 26, 2011

As per the prior post, earlier we sold 90% of our $NFLX position at $183. After the earnings, at this time the stock is trading at $201. Key driver of the stock’s up move is short covering prompted by rise of subscribers to over $20,000,000.00 . First resistance is around $225. We will carefully watch the price action if the stock moves to the resistance to decide on the remaining 10% position. We will also maintain a stop loss at $173.7 www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY

RISK INTO NETFLIX $NFLX EARNINGS IS HIGH

January 26, 2011

Image via Wikipedia Netflix reports earnings after the close today. The risk of large price movement in both directions is high. NFLX can easily fall 50 points or go up 30 points. We will stick with the discipline of the ZYX Change Method , and not let our substantial gains disappear. Options are too expensive to hedge, Stops will be ineffective in a potential gap situation. We will take gains on 90% of the position right here around $183. www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING

MISPLACED CASE BY BARRON’S ON NVIDIA $NVDA

January 24, 2011

Barron’s just made a case for Nvidia stock price doubling. We are a fan of Barron’s and its mostly thoughtful content. However, Barron’s has been known to be wrong at times and if past is the prologue, one more time Barron’s is providing an opportunity to short sell NVDA at much higher price than otherwise possible. Barron’s is correct in emphasizing the importance of Graphics Processing Units and NVDA’s expertise in this area. However, Barron’s Misses the mark in the following areas: NVDA has already licensed all of its relevant intellectual propert regarding GPUs tpo Intel. Intel has been slow,

WATCH OUT NETFLIX $NFLX

January 21, 2011

Amazon.com $AMZN today bought the shares it did not already own in Lovefilm International, a subscription-based streaming film service that operates in Europe. Our positive thesis on NFLX was based on becoming the first to proliferate streaming movies. As others enter the market, high flying shares are likely to come down. In the end , in our opinion , the only differentiator between video providers will be price. In this scenario, there will simply be a race to the bottom.We suggest protecting profits in NFLX with tight stops. www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED

TIME TO TAKE PROFITS ON GRAINS JJG

January 19, 2011

Technical action in soft commodities today may signal a shift in the up momentum. We will take profits on our iPath DJ-UBS Grains TR Sub-Idx ETN JJG position right here around $53.50