ARM Holdings: Short Based on Valuation

A New York presenter recommends a short on ARM Holdings (NASDAQ: ARMH, $26.99). He respects the company's dominance in semiconductor IP for the mobile market, but believes that the valuation has gotten ahead of itself. The threat from Intel, while dismissed by many on the Street, is credible from the presenter's perspective. The stock is trading at 27 times most bullish earnings estimates for 2011 and investors may question where more upside can come from.