I wouldn't be surprised if this company will be bought this year. First year profitability, tax loss benefits,future tech. stronghold, expanding cloud computing market. The metrics support it. The only factor against a buyout is the tenacity of the board. They really believe in Netlist and the products they sell. Either way, this year, long investors win.
It's unlikely Chuck Hong and partners will agree to sell their company. They specifically entered an anti-takeover clause in the bylaws.
However, given a proper price selling the company may not be such a bad idea.
NLST IPO price few years ago was around $9-10/share. So I don't think Chuck will settle for less.
Otherwise, here's some fundamentals that may lure industry players to consider NLST buyout:
1) Market cap $60M, which leaves plenty of room to make offer good offer.
2) Over 60 patents and IPs
3) 3 Product lines, all of which are becoming profitable.
4) HyperCloud (32GB) is the ONLY load-reduce/rank-multiplication memory module capable of running at full capacity and bandwidth possible of 1333MHz. Which is significant in the HPC (High Power Computing) segment.
5) Potential lucrative deals with IBM and more so exclusivity with HPQ which controls 35% of the total server units globally. Close to 3 Million servers sold by HP.
6) NetVault product line. Virtually exclusivity with DELL. DELL even requires LSI CacheCade to include NLST card.
7) INTC interest in NLST's NVvault-DDR3, as part of its goal to enter the data-segment
8) Close to $3/share in accumulated loss-carry-forward, which will allow potential buyers to not pay tax on future $75M in profit.
For buyer, the valuation is hard to be determined at this stage. For seller, does the board of Nlst like to sell company? probably not.
Just wait to see qualifications from major OEMs. On Dec 5th, Mr. Hong said:"HP and IBM will likely, again, become significant customers over the next few years." it seems that Mr. Hong has confidence for qualifications from HP and IBM. In my opinion, only three persons realy know what's going on: CEO, CFO and Mr. Lopez.