3SOF

Profile: Dataram Corporation engages in the development, manufacture, and marketing of large capacity memory products primarily used in high performance network servers and workstations worldwide. The company offers customized memory solutions for original equipment manufacturers (OEMs) and compatible memory for computers manufactured by various companies. It also manufactures a line of memory products for Intel and AMD motherboard based servers. The company sells its memory products to OEMs, distributors, value-added resellers, and end-users. Dataram Corporation was founded in 1967 and is headquartered in Princeton, New Jersey.
Market Cap: 17M$
Website: http://www.dataram.com/

Trading Thesis:

Short term speculative play, based on TA and FA.

- DRAM has only 17M market cap, while it's shareholder's equity is around 20M, with 7M in cash and just 3.6M liabilities.

- The stock is not reporting profits yet, although if it starts posting profits, even if they are small profits the stock will probably jump 100% or more based on it's solid financial situation with no debt and lot's of cash.

- From a TA perspective the chart looks awesome, with a strong breakout of the $1.75 resistance, a consolidation retest and starting to rise again.

- There's a big resistance near $2.40, if we watch a breakout there will be a bump & run in-play with a $4.43 theoretical projection, a price that looks like a nice fair value based on fundamentals.

Trading Plan:
Buy 5% @ the open for both portfolios with stop @ 1.7

regards,

Update:

After the recent gains, we'll try to sell both positions in DRAM today above $4.00.

Trading Plan:
Sell above $4.00 if possible, or else use a stop profit @ $3.75