DRAM was a $30+ stock in 2010 when profitable. The stock is where it is because like any company in the sector was hit with plunging memory prices. But DRAM prices are now on an steady upwards trend....and expected to climb further in 2H and into 2014 and 2015. DRAM prices have jumped over 50% since January 2013.
DRAM is now stronger than ever and far more diversified that in 2010. Yesterday (5/9) AMD announced a new line of fast processors aimed at the growing gaming industry. They announced that DRAM's RAMDisk technology is at the heart of AMD's new products!!
DRAM will announce its return to profitability shortly and will enter many investors radars. This is the time to accumulate while it is still under the radar.
InJohn 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. ”
DRAM after a recent 6/1 reverse split:
- 1.7 Million Outstanding Shares
- 1.4 M share float
- 0.1 times sales (industry average 2)
- 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 businesses
A few things.
Anyone who knows the memory business understands the boom/bust cycles. The company has never made huge dollars and they actually had a load of debt problems back in late 2001-2003. They ran into problems and ran low on cash twice, had to borrow a large sum comparative to what they borrow now. Revenues at peak in this company were roughly 25 million a Q but that was not long lasting(they had a pre adjusted stock price of 30+$ at maximum but roughly ranged in the 3$ to 9$ range for most of its existence. There are 3 major players in dram but dataram is NOT one of them. They were first to the game but this horse was a laggard, a company not run very well but managed to chug a long for 46 years now!! They had a chunk of land they sold that was company property for over 20 years. They've always needed a CEO who would be a go getter of business in a boom cycle. There are billions of dollars out there and dataram even during boom cycles commands only a fraction of business, and it is a TRICKY business the model is quite strange for anyone to understand. I admittedly have not followed along the last 4-5 years due to health problems and retirement but wanted to check in to see if any old timers were still here of which there are none. This is a notoriously low volume stock like the business the company is boring!!! The volume you people have seen here in the last few weeks is only the third time in its history. Can this stock have a price of 3-9 $ again adjusted X 6? I'd have to think history tells you it can. That would be 18-54$. I'd like to know more about what is going on, what initiatives and strategies they are working on. To be working closely with Amd on projects is about as exciting as this company has ever been in the last 10 years. It once was a top 50 small company with the likes of Cree light-bulbs, true story.