Let’s talk about ARM Holdings.
They bill themselves as an architect of the digital age, and I tell you, they are. The company is great at execution. They beat the Street in each of the last four quarters.
Fiscal year ‘16 earnings estimates are rocking higher. The company’s business model includes licensing and royalties. For the most part, the licensing revenue goes up to four years, the royalties come in for about 20 years -- and that business is growing at a better compounded annual rate of growth then the licensing business.
Smart phones – a $25 billion industry in the next few years. They've already got a big market share there, like 85%. They are the brains in a lot of these smartphones and tablets.
Embedded intelligence -- $25 billion marketplace. They got a 10% share there. We're talking about wearable smart devices. They're going to grow big time.
Enterprise infrastructure -- we're talking base stations, routers and switches, again another $25 billion industry. They got a 25% market share.
I love the way this stock acts. It recently hit a double top. It's pulled back. The next move through $55 in my mind takes this thing up. Ultimately, I think it's a $75 stock. I like this one a lot. I've been in and out of it over the years. I should've just stayed in, because I think it goes higher.