This Day On The Street
Continue to site
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

Of course, the real benefit to Netlist won't come until it actually sells HyperCloud to its customers, and that's brought scrutiny from investors who are not convinced in Netlist's turnaround. While Hong says its customers were also initially skeptical that Netlist could do what it said it could theoretically do, the company is now at the point where it has samples to present and show customers that the technology exists.

"To get ... a product where it is mass producible with all the reliability in mission critical applications, that's going to take some work. But the hard part of getting the product to work well has been done," Hong said. "The specifications about the cost performance and power were said to be unattainable. But we're now at the point where we have engineering-level samples, and they've seen first hand that it is doable. It has been done."

That isn't to say Netlist investors are experiencing risk-free returns. As is the case with any penny stock that has rallied sharply, risk always moves higher in lockstep. And while the share price has ballooned on the expectated sales performance of HyperCloud, it won't show up in Netlist's overall revenue stream until late in the second quarter or early in the third quarter.

In addition, there is no analyst coverage of the stock, as Netlist hasn't provided guidance. And because Netlist traded below $1 for so long, institutional ownership is nearly nonexistent. But Hong says that all could change very shortly, given the expectations for the new memory module's performance.
4 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AAPL $95.01 0.00%
EMC $24.20 0.00%
HPQ $9.37 0.00%
IBM $126.98 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs