DRAM $4 ...TARGET: $30+ ....NEW DEAL WITH AMD WILL MULTIPLY REVENUES & EARNINGS ....MEMORY BUSINESS STRONGER THAN EVER
12-month Target: $30+ because of explosive revenue growth and 1.4 share float
The May 2013 AMD-DRAM deal announced by both companies will be a significant revenue influx for tiny DRAM currently with only a $8 Million Market Cap and 1.4 Million share float.
Per the announcement:
1) DRAM will manufacture the AMD Gamer Series memory modules currently selling at Newegg at $155.
2) AMD's Gamer Series memory modules and Radean products use DRAM's RAMDisk software /technology to drive processing speeds to new highs.
Even without the AMD windfal that will likely multiply revenues/earnings, DRAM was expected to be profitable going forward because of the recent incredible jump in memory prices, DRAM's has significant upside because it is trading at 0.2 X sales compared to 1.4 X sales for the sector.
In the last quarterly earnings release, John H. Freeman, Dataram's president and CEO commented, "Since the close of our third quarter on January 31, 2013 we have seen an increase in pricing which can positively impact our memory business for the balance of the fiscal year and beyond."
Mr. Freeman concluded, "In addition to a healthier semiconductor industry, we continue to develop and expand our relationship with Advanced Micro Devices, Inc., which together with our RAMDisk agreement and other new opportunities we are currently pursuing should provide new sources of revenue, profit and growth for Dataram in 2013 and beyond..."