Dataram (NASDAQ: DRAM) with $8M market cap is poised for a huge break out– I am talking double, triple, quadruple, etc. from today’s $4/share price.
The rapidly improving fundamentals easily support $35, the price it achieved several times before (the last time in 2010), but DRAM is now significantly stronger and having explosive earnings potential for its only 1.7 million outstanding shares (1.4 million share float).
Two main reasons for these assertions - they are easy to corroborate by any serious value investor:
1……..Memory prices have almost doubled this year and were 70% higher in the quarter to be reported soon vs. the previous quarter. Traditionally, the memory business was it’s main business having been a pioneer and a respected company since 1967. DRAM prices continue to literally explode during the current quarter and are expected to continue to go up into 2015 due to manufacturing shortages and high demand.
2……..AMD and DRAM recently announced in May (5/8/2013 AMD and 5/12/2013 DRAM) that they have agreed on a memory manufacturing partnership. This partnership includes Dataram Corporation as an AMD memory-manufacturing partner to produce AMD's new Gamer Series memory. Gamer Series memory is compatible with AMD and Intel platforms, supporting both AMP and XMP memory profiles.
"AMD Radeon RG2133 Gamer Series Memory is armed with features designed to outperform the competition on any task," said Roman Kyrychynskyi, product director, Graphics Business Unit, AMD. "Designed with multi-platform compatibility in mind, the AMD Radeon RG2133 brings cutting-edge technology, as well as uncompromising quality and compatibility for PC gamers.
"AMD and Dataram have worked together to significantly enhance the dynamic background load-and-save feature in order to create a seamless, non-volatile RAMDisk experience," said Jason Caulkins, CTO, Dataram. "This underscores AMD and Dataram's continued dedication to delivering the highest-performing memory products
So I did a little more research into rising memory prices and see that they are quite a bit higher than 6 months ago. Can I assume that a 70% hike in the market price would translate into a similar move in revenues? Is that how I should be looking at this? If you apply current memory prices to last quarter then this would be close to or possibly even profitable.
I hope you don't take this the wrong way but I thought you were a pumper. Your posts come across that way. But I checked out your history and you were on this before the run so kudos on the good call.
Any idea what the potential revenue stream is from the AMD partnership?
I will give you my take....not this quarter but the next one the AMD-related revenues will be higher than the legacy memory revenues. I expect $10M to $12M the quarter to be reported in 2 weeks. Net income will range from 20 - 40 cents/share. Guidance will be bullish citing the AMD partnership and the continued strength of the memory business.