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Tech Randoms, And Levels I'm Watching

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Cavium (CAVM) -- The company delivered and while I think this was a modestly strong beat-and-raise report, the biggest upside in the stock might be from the fact that Cavium announced it is an architecture licensee for the ARMv8 architecture from ARM Holdings (ARMH). This supports a robust growth trajectory and demonstrates CAVM's ability to keep monetizing it's 4G/LTE development channel.

I had a feeling that this was a potential good name to buy ahead of the call, but as I stated yesterday, the recent material rise in the shares gave me pause. On the other hand, I saw no fundamental reason to give Mr. Market any of my shares cheaply during the summer nadir. Even before the ARMH agreement, I had planned on holding this position for some time. I even now think CAVM might be a stronger take-out play. Lastly, given the EU news, I wouldn't be surprised if we have a few risk-off days where CAVM might present itself at better entry levels

I have increased my upside target on CAVM from the mid-$30's to the low to mid-$40's.

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POSITION:  No positions in stocks mentioned.