BUY DRAM $2.3 BEFORE IT FLIES TO $20.......DRAM PRICES INCREASED 50% IN 2013….FURTHER DRAM SHORTAGES ARE EXPECTED.....1.5M SHARE FLOAT….0.1 X SALES…..WAS $35 IN 2010
Unbelievable investment opportunity for smart and visionary value investors. DRAM is a potential multi-bagger.
DRAM recently executed a 1/6 reverse split and now the market cap in only $4 Million with revenues of about $30M and on the verge of returning to profitability big time. Last Q it was very close to profitability when the prices were low. Since the start of the current quarter prices and demand have sky-rocketed.
Take a look a typical news item talking about the recent boom in memory prices.........
Chip makers Are Starting to Report Big Profits Due to Raising DRAM Prices. DRAM Supply Shortages Are Forecasted
By Jungah Lee - Apr 23, 2013 6:41 PM CT
Chip Maker SK Hynix, the world’s second- largest maker of computer memory chips, posted first-quarter profit that beat analyst estimates amid a rebound in prices for semiconductors used in personal computers.
The company turned to net income of 178.7 billion won ($159 million) in the three months ended March from a loss of 271 billion won a year earlier, Icheon, South Korea-based Hynix said in a regulatory filing today. That compares with the 172 billion won average of 25 analyst estimates compiled by Bloomberg.
SK Hynix is shifting its focus to more profitable mobile dynamic random access memory, or DRAM, chips amid rising demand for smartphones and production cuts by smaller rivals. Demand from handset makers including Samsung Electronics Co. (005930) will drive sales and improve earnings in the second quarter, said Oh Sang Woo, an analyst at Leading Investment & Securities Co. in Seoul.
“A strong earnings improvement is expected in the second quarter,” Kim Young Chan, an analyst at Shinhan Investment Corp. in Seoul, said before the announcement. “PC DRAM prices will continue to rise, while the global mobile DRAM chip supply will be in shortage.”
If the DRAM market will be stronger there is no reason why this one can not jump higher than that, right? They could easily report 50c/share net income in the upcoming earnings report with such low share count.
HSBC published a brief report on April 15, 2013 titled "Memory Sector" in which they offer a price prediction for DRAM:
Expect a further increase of 18% in PC DRAM prices for next three month[s]: We think PC DRAM prices will continue to show an upward trend until the end of 2Q13, mainly due to: 1) Samsung Electronics and SK Hynix continuing to reduce PC DRAM capacity as they shift their focus to mobile DRAM, 2) Rexchip's expected shift of 50% of its capacity (currently has an 80k wpm capacity) to producing mobile DRAM by June, and 3) Micron's potential shift of the Singapore fab to NAND. We could see price increases of about 18% to USD30 by the end of 2Q13.