^^DRAM $2.2 UP 6% WILL FLY PAST $20 IN 2913.......DRAM PRICES INCREASED 50% IN 2013…SEVERE DRAM SHORTAGES ARE EXPECTED.....1.5M SHARE FLOAT
DRAM = MULTI-BAGGER.......Pre-earnings rally is getting started....:)
After a recent 6/1 reverse split:
- 1.7 Million Outstanding Shares
- 1.4 M share float
- Lat quarter near break even despite that average DRAM prices for the quarter were 50% lower than this quarter
- Strong Balance Sheet
- Recent big agreements with AMD and others to use their RAMDisk technology aimed at the gaming and other industries like Oil & gas, Financial, Medical....etc....where high processing speeds are desirable.
- This quarter will likely produce 30 - 60c/share net income due to a huge explosion in the memory and server busineeses
Take a look a typical news item talking about the recent boom in memory prices.........
Chip makers Are Starting to Report Big Profits Due to Raising DRAM Prices. DRAM Supply Shortages Are Forecasted
By Jungah Lee - Apr 23, 2013 6:41 PM CT
Chip Maker SK Hynix, the world’s second- largest maker of computer memory chips, posted first-quarter profit that beat analyst estimates amid a rebound in prices for semiconductors used in personal computers.
The company turned to net income of 178.7 billion won ($159 million) in the three months ended March from a loss of 271 billion won a year earlier. That compares with the 172 billion won average of 25 analyst estimates compiled by Bloomberg.
SK Hynix is shifting its focus to more profitable mobile dynamic random access memory, or DRAM, chips amid rising demand for smartphones. Demand from handset makers including Samsung Electronics Co. (005930) will drive sales and improve earnings in the second quarter.
Kim Young Chan, an analyst at Shinhan Investment Corp. in Seoul, said before the announcement. “PC DRAM prices will continue to rise, while the global mobile DRAM chip supply will be in shortage.
DRAM is the cheapest DRAM play anywhere with the highest upside. Volume is low now but don't wait until this low floater catches fire. With a 1.5M share float a 300% gain in one day...it happened before.
Buying pressure will explode when they announce a record quarter shortly. With only 1.5 million shares I see a 300% gain in a few days. DRAM will make it in many investors radars after monster earnings and a bullish forecast.
DRAM was an equivalent $35 in 2010 with less revenues, profits, and product diversification. Furthermore, all analysts are predicting DRAM shortages all the way to 2015
4GB Module’s Average Contract Price Hits $25.5 Fast Approaching $30 Historical High
Steady DRAM price increases are the norm in 2013 with five consecutive months of DRAM price growth, and a historical high of $30 per 4GB DDR3 module is not far off.
The DRAM price situation arguably took a turn for the better in 2013, when market supply and demand gradually returned to healthier levels. The reduced production of PC DRAM has spurred a series of upward price movements, which not only allowed mobile DRAM prices to remain steady, but also led to an increase in server DRAM prices.
Assuming that supply volumes undergo little change, TrendForce forecasts that industry’s overall revenue will rise to approximately $34.6 billion (a growth of 30% compared to the previous year). Due to the popularity of smartphones and tablet PCs , the growth in the output value for mobile DRAM is expected to increase by 31% from last year.
The overall price growths in DRAM products is likely to help many DRAM manufacturers recover from the losses incurred from previous years. . On the whole, the financial prospects look bright for DRAM manufacturers as the adjustments experienced by the industry come to an end.