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When $$$MR. MARKET$$$ goes to the gym and pumps up his 19” arms, he says “I am HUGE!”. As much as I’d like to think that this is not true, bigger is not always better. In fact, sometimes it might make sense to say “I am tiny!”.
Pity the poor alchemists. They spent the Middle Ages in candle-lit laboratories, laboring to brew universal elixirs and to turn base metals into gold or silver. They failed utterly. By the dawn of the Scientific Revolution, researchers equipped with microscopes founded modern chemistry -- and dismissed alchemy as hocus-pocus.
But it turns out alchemists were just a few centuries ahead of schedule. Today, in sparkling labs equipped with powerful microscopes, scientists on three continents are promising dramatic new materials and medicines that would make alchemists proud. This work takes place in the realm of nanotechnology, industry's tiniest stage. The standard unit of measurement, a nanometer, is a billionth of a meter -- barely the size of 10 hydrogen atoms in a row. In this universe entire dramas can unfold on the tip of a pin, and a sneeze packs the punch of a raging hurricane.
Why so small? Researchers have discovered that matter at this tiny scale often behaves very differently. While some of the science behind this phenomenon is still shrouded in mystery, the commercial potential of the infinitesimal is coming sharply into focus. Familiar materials -- from gold to carbon soot -- display startling and useful new properties. Some transmit light or electricity. Others become harder than diamonds or turn into potent chemical catalysts. What's more, researchers find that a tiny dose of nanoparticles can transform the chemistry and nature of far bigger things, creating everything from fortified fenders to superefficient fuel cells. Engineers working at the nano scale have a brand-new tool kit that's full of wonder and brimming with potential riches. That’s right..for all you Mork and Mindy fans…Nano Nano!
Today I bought NVE Corp (NVEC) at 54.02. I will sell it in 4 to 6 weeks at 62.31. Here is why I like NVEC:
First of all, I love the chart:
The stock price is chugging chugging along and is up 226% from its low of only 9 months ago. So it is going up 25% per month. That is good. It’s PE is only 24 which makes it cheap considering the potential.
NVE makes sensors and couplers that go into pacemakers, hearing aids, factory automation equipment and memory chips. The technology holds the potential, analysts say, of making computer drives smaller and less power-thirsty. The technology also could one day bring pinpoint accuracy to global positioning systems. Imagine a smart phone that doesn't just know roughly where you are, but exactly which storefront is in front of you and which direction you're facing. “Dude, I am at the Kappa Sig party! Where the hell are you?...oh wait, I’ll check my smart phone. What are you doing dancing with HER MAN???!!!”
You spin me right round, baby
right round like a record, baby
Right round round round
You spin me right round, baby
Right round like a record, baby
Right round round round
The advantage that NVE products have is that they use electron's inherent spin rather than charge to store data, nothing's lost when the power's cut. The hope was to combine the best elements of hard drives and flash drives and eventually replace them both in cell phones, computers and other electronics. IsoLoop spintronic digital signal couplers use very little power because they switch in just 2.5 nanoseconds using only one-third of a nanojoule of energy. The devices can switch over 100 million times with less than the nutritional energy in one cracker crumb (0.00001 Calories).
The critical conduction layers in some NVE spintronic GMR sensors are approximately 1.8 nanometers thick, which is five atomic layers and less than one-ten thousandth the thickness of tissue paper.
The critical copper layers in NVE spintronic GMR devices are nearly a million times thinner than a penny. If a penny were rolled to the thickness of the copper layers, it would be about 10 miles in diameter.
The questions around nano are no longer whether it's coming or if it's real but just how big it will be. Some see nano simply as a new material revolution, akin to the dawn of plastics. Others herald a transition as dramatic as mankind's advance from stone to metal tools. But those hazy predictions aside, the questions that are echoing from laboratories in Tokyo to the hectic offices of short-sellers on Wall Street are about money. Which nanotechnologies will create new fortunes, industries, and corporate champs?
Spin the wheel and see where it land? For NVE it seems like the Wheel of Fortune!
Total revenue for the first quarter of fiscal 2010 increased 41% to $6.83 million from $4.86 million in the prior-year quarter. The revenue increase was due to a 22% increase in product sales and a 311% increase in contract research and development revenue. Net income for the first quarter of fiscal 2010 increased 54% to $2.94 million, or $0.61 per diluted share, compared to $1.90 million, or $0.40 per diluted share, for the prior-year quarter.
Last year, total revenue for the fourth quarter of fiscal 2009 increased 14% to $6.90 million from $6.05 million in the prior-year quarter. Product sales increased less than 1% and contract research and development revenue increased 220%. Net income for the fourth quarter of fiscal 2009 increased 38% to $3.11 million, or $0.65 per diluted share, compared to $2.25 million, or $0.47 per diluted share, for the prior-year quarter.
For fiscal 2009, total revenue increased 14% to $23.4 million from $20.5 million for the prior year. The increase was due to a 7% increase in product sales and an 81% increase in contract research and development revenue. Net income for fiscal 2009 increased 36% to $9.78 million, or $2.04 per diluted share, compared to $7.19 million, or $1.51 per diluted share, for fiscal 2008.
So now we look into the crystal ball and see what the future earnings will be. If you ask the ANAL-ysts, they project earnings of $2.40 per share on revenues of $27 million. This would be an 18% increase in earnings and a 15% increase in revenues. HELLO?? The recession is over. The company had more growth than this DURING the recession. Where the heck did these ANAL-ysts get their MBA’s from anyway?? This company has no long term debt. It has Return on Equity of 27% and Return on Assets of 22%. It has Profit Margin of 43% and an Operating Margin of 58%. It is a healthy engine for growth. So ready, set GROW. $$$MR. MARKET$$$ predicts that NVEC will have Fiscal Year 2010 earnings of $2.88/share on revenues of $31.1 Million. Even at today’s paltry PE ratio of 24, that would translate to a share price of 24 x $2.88 = $69.12 which is well past my sell target.
What does Dan Baker, CEO, think of NVE’s chances? He doesn’t think big…he thinks small. He said it himself:
"We are pleased to report strong revenue and earnings growth for the quarter “
“Our products can provide the eyes and nerves of electronics systems and they're smaller and more precise than conventional electronics. As most of you know, our growth strategy has been new products and broader distribution, and longer term, to expand into larger markets such as consumer or automotive electronics.”
“So the funding and the revenue line that we had this quarter is a credit to our team. They've executed very well. We certainly hope that they'll continue to execute well and that we can continue to gain these contracts.”
Remember the famous words of Steve Martin, “Let’s get small.”
Bring me your finest meats and cheeses. I am HUGE!
$$$MR. MARKET$$$
Please pass this write up on to some of your investor friends.
www.mrmarketishuge.com
PS. Does anyone know where Pocasset is?
Pity the poor alchemists. They spent the Middle Ages in candle-lit laboratories, laboring to brew universal elixirs and to turn base metals into gold or silver. They failed utterly. By the dawn of the Scientific Revolution, researchers equipped with microscopes founded modern chemistry -- and dismissed alchemy as hocus-pocus.
But it turns out alchemists were just a few centuries ahead of schedule. Today, in sparkling labs equipped with powerful microscopes, scientists on three continents are promising dramatic new materials and medicines that would make alchemists proud. This work takes place in the realm of nanotechnology, industry's tiniest stage. The standard unit of measurement, a nanometer, is a billionth of a meter -- barely the size of 10 hydrogen atoms in a row. In this universe entire dramas can unfold on the tip of a pin, and a sneeze packs the punch of a raging hurricane.
Why so small? Researchers have discovered that matter at this tiny scale often behaves very differently. While some of the science behind this phenomenon is still shrouded in mystery, the commercial potential of the infinitesimal is coming sharply into focus. Familiar materials -- from gold to carbon soot -- display startling and useful new properties. Some transmit light or electricity. Others become harder than diamonds or turn into potent chemical catalysts. What's more, researchers find that a tiny dose of nanoparticles can transform the chemistry and nature of far bigger things, creating everything from fortified fenders to superefficient fuel cells. Engineers working at the nano scale have a brand-new tool kit that's full of wonder and brimming with potential riches. That’s right..for all you Mork and Mindy fans…Nano Nano!
Today I bought NVE Corp (NVEC) at 54.02. I will sell it in 4 to 6 weeks at 62.31. Here is why I like NVEC:
First of all, I love the chart:
The stock price is chugging chugging along and is up 226% from its low of only 9 months ago. So it is going up 25% per month. That is good. It’s PE is only 24 which makes it cheap considering the potential.
NVE makes sensors and couplers that go into pacemakers, hearing aids, factory automation equipment and memory chips. The technology holds the potential, analysts say, of making computer drives smaller and less power-thirsty. The technology also could one day bring pinpoint accuracy to global positioning systems. Imagine a smart phone that doesn't just know roughly where you are, but exactly which storefront is in front of you and which direction you're facing. “Dude, I am at the Kappa Sig party! Where the hell are you?...oh wait, I’ll check my smart phone. What are you doing dancing with HER MAN???!!!”
You spin me right round, baby
right round like a record, baby
Right round round round
You spin me right round, baby
Right round like a record, baby
Right round round round
The advantage that NVE products have is that they use electron's inherent spin rather than charge to store data, nothing's lost when the power's cut. The hope was to combine the best elements of hard drives and flash drives and eventually replace them both in cell phones, computers and other electronics. IsoLoop spintronic digital signal couplers use very little power because they switch in just 2.5 nanoseconds using only one-third of a nanojoule of energy. The devices can switch over 100 million times with less than the nutritional energy in one cracker crumb (0.00001 Calories).
The critical conduction layers in some NVE spintronic GMR sensors are approximately 1.8 nanometers thick, which is five atomic layers and less than one-ten thousandth the thickness of tissue paper.
The critical copper layers in NVE spintronic GMR devices are nearly a million times thinner than a penny. If a penny were rolled to the thickness of the copper layers, it would be about 10 miles in diameter.
The questions around nano are no longer whether it's coming or if it's real but just how big it will be. Some see nano simply as a new material revolution, akin to the dawn of plastics. Others herald a transition as dramatic as mankind's advance from stone to metal tools. But those hazy predictions aside, the questions that are echoing from laboratories in Tokyo to the hectic offices of short-sellers on Wall Street are about money. Which nanotechnologies will create new fortunes, industries, and corporate champs?
Spin the wheel and see where it land? For NVE it seems like the Wheel of Fortune!
Total revenue for the first quarter of fiscal 2010 increased 41% to $6.83 million from $4.86 million in the prior-year quarter. The revenue increase was due to a 22% increase in product sales and a 311% increase in contract research and development revenue. Net income for the first quarter of fiscal 2010 increased 54% to $2.94 million, or $0.61 per diluted share, compared to $1.90 million, or $0.40 per diluted share, for the prior-year quarter.
Last year, total revenue for the fourth quarter of fiscal 2009 increased 14% to $6.90 million from $6.05 million in the prior-year quarter. Product sales increased less than 1% and contract research and development revenue increased 220%. Net income for the fourth quarter of fiscal 2009 increased 38% to $3.11 million, or $0.65 per diluted share, compared to $2.25 million, or $0.47 per diluted share, for the prior-year quarter.
For fiscal 2009, total revenue increased 14% to $23.4 million from $20.5 million for the prior year. The increase was due to a 7% increase in product sales and an 81% increase in contract research and development revenue. Net income for fiscal 2009 increased 36% to $9.78 million, or $2.04 per diluted share, compared to $7.19 million, or $1.51 per diluted share, for fiscal 2008.
So now we look into the crystal ball and see what the future earnings will be. If you ask the ANAL-ysts, they project earnings of $2.40 per share on revenues of $27 million. This would be an 18% increase in earnings and a 15% increase in revenues. HELLO?? The recession is over. The company had more growth than this DURING the recession. Where the heck did these ANAL-ysts get their MBA’s from anyway?? This company has no long term debt. It has Return on Equity of 27% and Return on Assets of 22%. It has Profit Margin of 43% and an Operating Margin of 58%. It is a healthy engine for growth. So ready, set GROW. $$$MR. MARKET$$$ predicts that NVEC will have Fiscal Year 2010 earnings of $2.88/share on revenues of $31.1 Million. Even at today’s paltry PE ratio of 24, that would translate to a share price of 24 x $2.88 = $69.12 which is well past my sell target.
What does Dan Baker, CEO, think of NVE’s chances? He doesn’t think big…he thinks small. He said it himself:
"We are pleased to report strong revenue and earnings growth for the quarter “
“Our products can provide the eyes and nerves of electronics systems and they're smaller and more precise than conventional electronics. As most of you know, our growth strategy has been new products and broader distribution, and longer term, to expand into larger markets such as consumer or automotive electronics.”
“So the funding and the revenue line that we had this quarter is a credit to our team. They've executed very well. We certainly hope that they'll continue to execute well and that we can continue to gain these contracts.”
Remember the famous words of Steve Martin, “Let’s get small.”
Bring me your finest meats and cheeses. I am HUGE!
$$$MR. MARKET$$$
Please pass this write up on to some of your investor friends.
www.mrmarketishuge.com
PS. Does anyone know where Pocasset is?
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