I'm Watching NLST - Netlist, Inc. - Technology

wy3134 · November 13th, 2009, 03:17 PM

Granted it has already popped, its one worth watching for the future as its a legit company that sells products almost exclusively to Hewlett Packard and Dell. Havent done much DD on it cause it was just on my long watch list but after this pop it will be on my radar screen for the future.

Two days ago it was 1.30, today its roughly 3.50.

all on the news of a new 16gb ddr3 server product for larger markets

http://money.cnn.com/news/newsfeeds/...___LA09103.htm

griddle · November 13th, 2009, 03:38 PM

I am still new to stokes, but this might mean that this stock has room to keep climbing. I am going to keep watching.

"the company has released the first ever 16GB memory module for servers called HyperCloud, the innovation allows for increased memory bandwidth and amplified server performance. HyperCloud will debut at the Supercomputing tradeshow in Portland, Oregon from November 17th to the 19th. Headquartered in Irvine, California, Netlist, Inc designs, manufactures, and sells memory subsystems for the server, computing, and communications markets in the US and China."

wy3134 · November 13th, 2009, 03:39 PM

ive been watching for the past half hour and its gone up $1 in the past 20 mins, there was a lull at 3.85 for a good 5 mins and almost bought in....talk about wanting to hang yourself!

griddle · November 13th, 2009, 03:48 PM

I may have missed the boat on this one. I can't find anything to support where this stock is going.

None the less, I have not thrown in the towl yet.

wy3134 · November 13th, 2009, 03:50 PM

here comes the sell off, lets see where support picks it up

griddle · November 13th, 2009, 04:12 PM

I am wondering what is a safe entry into this one

While digging around, I found these statements:

"We remain on track to launch the first of our new products before the end of the year. The improving market for high-performance computing, firming prices for memory and the early interest from OEMs in our chip-based technologies have given us reason for optimism as we look into 2010 and beyond."

"The Company continues to invest heavily in R&D as it executes on the planned technology transition to its next-generation memory subsystems."

"Netlist is conducting a conference call today to be broadcast live over the Internet at 5:00 pm Eastern Time to discuss and review the financial results for the third quarter and nine months ended October 3, 2009. The dial-in number for the call is 1-877-941-8602. The live webcast and archived replay of the call can be accessed in the Investors section of Netlist's website at www.netlist.com."

wy3134 · November 13th, 2009, 04:15 PM

i would suspect a big sell off on monday then with the profit announcement being AH. after that we will see where the support is on this one, i would suspect its one to keep watch and try to bank free shares on cause once the economy recovers, and if retail shows a strong 4q, that should effect dell/HP and thus affect this stock as well (i would assume a trickle down anyway)

i wish i had better knowledge on the technology sector, hopefully someone who does can chime in here and give us some good advice

Escrow · November 13th, 2009, 04:41 PM

Great find. They really seem to have their stuff together.

griddle · November 14th, 2009, 01:01 AM

I looked up an analysis and listened to the conference call on this stock and found the following:

NLST is overvalued compared to its Price of $4.47 per share, has below average safety, and is currently rated a Hold.

NLST has a current Value of $0.72 per share. Therefore, it is overvalued compared to its Price of $4.47 per share.

NLST has a forecasted Earnings Growth Rate of -6.00%.

But...

NLST has an excellent price trend.
They anticipate upcoming product launches:

1.) HyperCloud
2.) Net Vault
3.) Pioneering Eliminating Batteries

NLST feels that the product platforms are far enough along to support the investment. They have received a $5,000,000 line of credit. The new products will be difficult to replicate giving them the competitive edge.

Now we just have to determine if we should keep watching or buy.

griddle · November 14th, 2009, 01:52 AM

I just found this as well:

"In May 2008, the Company initiated discussions with Google Inc, regarding the Company's claims that Google has infringed on a US patent assigned to the Company relating generally to "rank multiplication" in memory modules. On August 29, 2008, Google filed a declaratory judgment lawsuit against the Company in US District Court for the Northern District of California, seeking a declaration that Google did not infringe on the Company's patent, and that the Company's patent is invalid. Google is not seeking any monetary damages. On November 18, 2008, the Company filed a counterclaim for infringement of the patent by Google. The Company expects to vigorously pursue its claim against Google and to vigorously defend against Google's claim of invalidity"

Guys, if NLST is successful against Google, damages could be awarded in the 10s of millions of dollars - thus increasing book value several folds. The reward/risk potential is huge.

I am trying to find more about this now.

wy3134 · November 14th, 2009, 10:08 AM

wow great digging! i didnt get a chance to search last night, had to go to a Luke Bryan concert (i know i know, disgrace me for doing something instead of my DD on this stock! haha)

ChuckD · November 14th, 2009, 01:03 PM

Insiders hold about 10 million shares
http://moneycentral.msn.com/ownershi...ip&Symbol=NLST

Chart
http://www.google.com/finance?q=NASDAQ:NLST

SEC Filings
http://sec.gov/cgi-bin/browse-edgar?...ion=getcompany

They are also involved in several other lawsuits, they are the plaintiffs in some, defendants in others

Patent Claims

On March 17, 2009, the Company filed a complaint for patent infringement against MetaRAM, Inc. for its infringement of one of the Company’s patents. On March 26, 2009, MetaRAM filed a complaint against the Company for patent infringement. The parties are currently discussing an amicable settlement of these claims. If these discussions are unsuccessful, the Company expects to vigorously pursue its claim against MetaRAM and to vigorously defend against MetaRAM’s separate claim.

On September 22, 2009, the Company filed a patent infringement lawsuit against Inphi Corporation in the U.S. District Court for the Central District of California. The suit alleges that Inphi is contributorily infringing and actively inducing the infringement of a US patent assigned to the Company which is directed to memory modules with load isolation and memory domain translation capabilities. The Company is seeking damages and injunctive relief based on Inphi’s use of its patented technology. Inphi has not yet answered the Company’s complaint.

Trade Secret Claim

On November 18, 2008, the Company filed a claim for trade secret misappropriation against Texas Instruments (TI) in Santa Clara County Superior Court, based in TI’s disclosure of confidential Company materials to the JEDEC standard-setting body. On February 20, 2009, TI filed its answer. The parties are currently engaged in settlement discussions. If those discussions are unsuccessful, the Company expects to vigorously pursue its claims against TI.

California is also after them on an insider trading case

California Derivative Action

In August 2007, a derivative lawsuit was filed in California Superior Court for County of Orange-Smith v. Hong, Case No. 07CC01359-against certain of the Company’s officers and directors. This action contains factual allegations similar to those of the federal class action lawsuit described above, but the plaintiff in this case asserts claims for violations of California’s insider trading laws, breaches of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, and unjust enrichment. The plaintiff seeks unspecified damages, equitable and/or injunctive relief and disgorgement of all profits, benefits and other compensation obtained by the defendants. The defendants in this action have not responded to the complaint. Pursuant to a stipulation, the parties agreed to temporarily stay the action pending the ultimate decision on the defendants’ motions to dismiss in the federal securities class action. In April 2009, following a voluntary mediation of the matter, which took place in December 2008, the parties reached a tentative agreement to settle the derivative action. In June 2009, the parties executed a Stipulation and Agreement of Settlement of Derivative Claims documenting the essential terms of the proposed settlement, and on June 26, 2009, the parties filed their joint motion for preliminary approval of the proposed settlement with the Court. The Court granted preliminary approval of the proposed settlement on July 27, 2009. The final hearing on the proposed settlement is set for November 5, 2009. The Company makes no assurances at this time that the Court will grant final approval of the proposed settlement terms or that the matter ultimately will be settled. Despite the pending settlement reached in this derivative action, the Company believes that the allegations lack merit. In addition, the Company received correspondence from counsel for a purported shareholder requesting that the Company take actions to investigate and remedy alleged wrongdoing by unidentified former and current officers and/or directors based on allegations similar to those in the Smith v. Hong derivative case. The Company, through its Board of Directors, has evaluated and rejected this request. The proposed settlement also is intended to resolve any remaining issues arising from this shareholder request. Despite the pending settlement reached, the Company believes that the allegations raised in the shareholder request also lack merit.

Their books look pretty good, I am usually impressed with the way Chinese companies handle their finances. Here is a statement from their last filing

We believe our existing cash balances, borrowing availability under our new revolving credit agreement, and the cash expected to be generated from operations, will be sufficient to meet our anticipated cash needs for at least the next 12 months

I would like to hear some opinions from some of you tech types what you think about their new product. I like the low share count, but I cant help but get a little de-ja-vue on this one remembering the dot.com/tech bubble.

wy3134 · November 14th, 2009, 01:38 PM

the new ddr3 technology is the new wave in memory, supposedly has less operating wastes (more efficient in memory transfer and processing)

havent read much more on ddr3 technology other then what it supposedly upgrades on the ddr4 or whatever most systems currently use

FWIW i just bought a new laptop and they only had about 3 or 4 models availabe with the new ddr3 memory so its very new

lattes · November 14th, 2009, 01:43 PM

Just as a note on expecting the company to do better as Dell and HP increase retail sales. They make ram for large scale servers, business is still not spending much money on equipmen upgrades etc. yet and it might be some time before we see q change in that trend as business investment in hard assets is usually one of the last things to recover. That said I am going to keep an eye on this one and it could be a very good long term play.

ChuckD · November 14th, 2009, 02:18 PM

HP is trying to get them to replace.

HP Sets Sights on PC Replacement Cycle

October 13, 2009 12:02 AM ET

HP HPQ today unveiled new PCs to help businesses of all sizes transition to new technology and get more from their IT investments.
The offerings include two affordable notebooks – the HP ProBook 6445b and HP ProBook 6545b – the HP Elite 7000 Business Desktop PC, new HP Docking Stations, and new power management and monitoring software.
These product introductions are the first in a series of business product launches HP has planned over the next few months to provide businesses the broadest mix of products to refresh their aging desktops and notebooks.
“The release of Windows 7 presents an ideal opportunity for businesses of all types to evaluate their aging fleet of client devices and build a plan to leverage the best solutions to meet their company’s needs,” said Stephen DeWitt, senior vice president and general manager, Personal Systems Group – Americas, HP. “With a wide range of new products in the market, like the new ProBooks and Elite desktops, we have put the right pieces in place to ease the transition to new technology.”

A high-performance workhorse, the HP Elite 7000 comes installed with the new Microsoft Windows® 7 operating system,(10) DDR3 memory support, the Intel® P55 Express chipset and a choice of the latest Intel Core™ i5 and i7 processors.(11) Support for 8 gigabytes(12) of memory, a 1 terabyte hard drive(13) and an optional solid state drive provides opportunities for even more powerful computing. The series also includes an array of bays and ports for expandable flexibility and a RAID 1 mirroring array with two hard drives that mirror data in real-time for reliable data protection.

(read the whole article here)
http://news.moneycentral.msn.com/tic...212&Symbol=HPQ

Escrow · November 16th, 2009, 12:31 PM

Quite the run today. Anyone able to trade this one?

griddle · November 16th, 2009, 02:55 PM

I spoke with the Investor Relations Firm's (Allen & Caron, Inc.) contact Jill Bertotti for Netlist, Inc. today. I have not looked at all of the companies fillings, but Jill stated that the pending lawsuits involve Netlist's Memory and Module Products and not their new product lines. Netlist has since steered away from these products to develope the HyperCloud and Net Vault product lines. She also stated that Net Vault is scheduled for release in the beginning of 2010.

A nice run so far today, up over 36% @ 6.10 pps. But, I am still a bit leery at this point. I would like to hear some other's opinion.

pgsc · November 16th, 2009, 02:59 PM

if you want to buy, I would wait for consolidation around $5 or so, maybe lower. This run up was a bit too fast.

pgsc · November 17th, 2009, 11:08 AM

While watching this one fall. I entered into PRKR @ 2.30. Over 4x its daily vol.

New revolutionary RF chip for wireless carriers
http://finance.yahoo.com/q/ae?s=PRKR

griddle · November 18th, 2009, 09:51 PM

I'm still watching this one, but I did find a post on "investorshub" that Netlist's competition ran from $4 to $40.

Check out STEC

They went from:
$3.42 on 12/16/08
to
$42.50 09/09/09

I think this jump in price had to do with their Solid State Drive Technology. You can read through all of their press releases here:

http://www.stec-inc.com/press/

Has anyone bought in on this one, yet?