This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Netlist Transforms With High-Margin Bet

Stocks in this article: NLST

"We're already talking to analysts and we will have some research coverage pretty shortly," he said. "Over the last few weeks, we've met with dozens of interested institutions. I think over the course of the last few months, many of them have purchased. I see indications that they're getting back in now. I think we'll start to see that."

In December, Netlist shares were hammered after Inphi Corp sued for patent infringement, arguing that Netlist's memory modules, such as HyperCloud, infringe on two patents Inphi holds.

Netlist immediately fired back that the suit is "without merit" and was only in response to a patent infringement action filed by Netlist against Inphi in September 2009. Netlist first initiated the patent suits against Google and Inphi, Hong says, adding that he's very confident Netlist's patents will hold up to anything.

"We feel this to be a seminal patent and a family of patents now in server memory. It's really a breakthrough in server memory," he said. "The HyperCloud product really emanates from this patent. We came up with it starting with an invention in 2004 when creating a product for Apple (AAPL). It didn't come out of a vacuum. It's a technology platform that has legs for the next decade or more."

For now, speculators will continue to debate whether the remarkable comeback in Netlist shares now reflects the company's true value or whether the trading action is part of a pump-and-dump move by speculators driving the stock higher. But Hong is optimistic about what lies ahead for Netlist. If third-party analyst reports are correct, HyperCloud is going to be a juggernaut in what is set to be a very large market, he argues.

"The resulting end product is custom and high value, so there's really no alternative anywhere else," Hong said. "We have ourselves in a very strong position in the market."

-- Written by Robert Holmes in Boston.

Check out all of Friday's high-volume, under-$5 stocks at the Dollar Store

Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.

5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs