This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Netlist Transforms With High-Margin Bet

Once the technical jargon is stripped away, it's no wonder why investors love with Netlist. Simply put, Netlist has created a computer memory module that takes off-the-shelf memory chips and makes them go faster, consume less power, and create higher capacity. That means fewer, better performing computer servers and, in turn, fewer costs for datacenter customers.

"It takes the same Samsung DRAM or Toshiba flash chip that everyone else uses and basically turns them into something much more high performance, beyond what those manufacturers can themselves do," Hong adds.

Investor enthusiasm has been rampant, apparent in the spike of trading activity. Prior to Netlist's HyperCloud announcement, share volume rarely topped 100,000 per day. Even after Netlist reported disappointing third-quarter earnings on Nov. 2, volume barely topped 228,000 shares.

Since HyperCloud's formal introduction, though, share volume hasn't fallen below 500,000. During one stretch in November, daily share volume exceeded 11 million for seven straight sessions. During this time, Netlist shares rallied from below $1 to nearly $8, where it began trading back in 2006. The stock pulled back some but has remained around the $4 level.

HyperCloud and NetVault, another new product the company is working on, are part of Netlist's altered approach to dominating the memory market. While Netlist went public on a business supported by memory board-level design and packaging that addressed thermal issues, the company has been transformed on the two proprietary product lines.

"We're a different business and a different company since then," Hong said. "We saw the writing on the wall as we ran into heavy losses and tough market conditions. It quickly dawned on us that we needed to look to create other values besides board-level and chip-packaging technology and create proprietary chips."
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $114.64 0.00%
EMC $26.01 0.00%
HPQ $29.76 0.00%
IBM $157.60 0.00%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs