Did any of you see on page A12 of today's IBD that NVEC is listed among the "New Buys Of Top-Performing Stock Funds For Past Six-Months"?
It's further proof that smart fund managers are loading up on this stock prior to its next big move up. Skeptics and dumb short sellers think the stock will go down after the next earnings report, but the fact is, if the company's first quarter had been bad, NVEC would've already pre-announced.
NVEC has NOT pre-announced, so we know that at a minimum, the company will at least meet its earnings expectations. The stock will be over $30 soon, and over $100 after the announcement of a deal with Freescale.
Another wise move. The difficulty was the volatility combined at the time with the expectation that a deal with FSL was immanent. So even when it looked like the chart was topping, the thought of an MRAM deal made it too hard (for me) to let go. When it didn't materialize the air went out of the bag, and the December quarter seasonality was the icing on that distasteful cake.
Well, remember that PE then was high then because earnings were low, so I'm not sure you can extrapolate that. Of course, the effect of a deal with FSL, if it happens, would have to reflect the amount of MRAM they hope to sell and the time frame. Also the depth of the market, meaning whether other companies would find it worthwhile to enter the MRAM market. Then there is any obsolencence factors that could come into play. Fortunately the revenues are becoming significant enough to fund R&D above a return acceptable to shareholders. So NVE can stay ahead of the curve without burning up cash.
A wise decision. The balance sheet at that time had a large retained earnings deficit and the company was sustained by research grants, not so much by sales revenues, so the speculation as you said was based on the MRAM jackpot (sampling by Cypress? Not sure of the timeline back then).
Back then the fundamentals were good, or it wouldn't of made the top 100. The PE was over 200 though, which is why in didn't buy then. Usually PE doesn't concern me, but that was a little too high.
Agreed. After a couple spectacular price movements that weren't sustainable because fundamentals weren't there yet, hopefully the growth in revenues and earnings (assuming it continues) will change the characteristics of the stock.