@DRAM $4.25 UP AGAIN...RALLY TO $30+ CERTAIN...1) MEMORY PRICES EXPLODING UP, 2) NEW HUGE DEAL WITH AMD...WAS $30+ IN 2010...1.7M O/S SHARES
Dataram (NASDAQ: DRAM - $8M market cap) is poised for a huge break out – double, quadruple, etc. from today’s $4+...just look at its chart! DRAM is trading at 0.2 X sales compared to 1.2 sector.
In last Q earnings ending January 31, the CEO predicted that because of a recovery in memory prices DRAM would be profitable in 2013 and beyond. Since then memory prices have jumped more than doubles and DRAM has recently announced a huge manufacturing deal with AMD on top of that.
Two main reasons for rapidly improving fundamentals:
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 DRAM'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 5/10/2013 DRAM) that they have agreed on a significant partnership. DRAM will be AMD's 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. The software is based on DRAM's RAMDisk technology.
"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 commitment to delivering the fastest/best memory products."
I expect a big jump in revenues when the company reports the results of the quarter ending April 31, 2013. But those revenues/earnings will pale compared to upcoming quarters since revenues from the AMD-DRAM memory manufacturing agreement start to have a significantly positive effect.
Read carefully what DRAM's CEO concluding remarks in last quarterly earnings report:
John H. Freeman, Dataram’s president and CEO commented, “The economy and especially the semiconductor industry continued to be soft during most of the Company’s third quarter, due to oversupply of raw materials and reduced customer infrastructure investment. 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. ”