3SOF

Used to be a nano wonder stock.  Selling for over $50!!!
Spintronics is the idea of using spinning electrons to keep your computer going - Your computer will always be on and use less power.  ........ok, maybe not that simple...but it has been basing for a while and broke out on decent numbers.  up 16%

http://finance.yahoo.com/q/bc?s=NVEC&t=1y

NVE Corporation engages in the development and sale of spintronics devices. Spintronics is a nanotechnology that utilizes electron spin rather than electron charge to acquire, store, and transmit information. Its offers sensor products that detect the presence of a magnet or metal to determine position or speed, and couplers, which transmit digital data at high speed and are used for factory and industrial networks. The company also licenses its spintronic magnetoresistive random access memory technology. It sells its products through manufacturers' representatives and distributors primarily in the United States. The company was founded in 1982 and is based in Eden Prairie, Minnesota.

The question was who was going to make the real $ on the patents, since there were other companies involved with the manufacturing - so it took a swan dive and has finally shown improving numbers.  This was going to be the answer to speedy computers and never losing data (since the computer was always "on".  Maybe they are finally getting their stuff together.  The float is very low, so some interest can make this thing move.......

The numbers are certainly getting in order:
http://finance.yahoo.com/q/is?s=nvec

David is looking for stocks that can increase 100% so in the usual 3SOF spirit I went on a crusade to find the Holy Grail: A stock that can increase 100%, which is fundamentally healthy.

Basically a stock that i wouldn't mind owning based on the fundamentals but which I know have a huge potential.

I did only find one candidate: NVEC.

NVEC's has used their core magnetic competency to develop sensors, which increasingly are being used in different applications like hearing aids and pacemakers. The revenue from sales of products has increased 39% and pretax income with 40%. The Department of defense has expressed interest for their Bio Detection device and is funding the development and even NASA has signed a cooperation agreement with NVEC.

Now this is a very attractive business in its own right and compared to the perspective NVEC is cheap. The PE is only 47(forward PE 42). But this can hardly qualify NVEC to be a member of LTOF.

But imagine a company that is holding all the key patents for a 76 billion USD market in 2019. That is what some analysts believes NVEC is having and without being an expert I tend to agree.

The MRAM technology is moving from the labs to commercial production these days and the first results looks very promising.

Motorola is demonstrating a 8 mb chip and expect soon to use it in their mobile phones. MRAM has some very distinctive advantages compared to DRAM, FLASH and SRAM which when the capacity is competitive will make MRAM a clear winner in this space.

100%???

Well NVEC's market cap is 76 million. That is precisely 0.1% of the potential market - so yes 100%

I will write more about NVEC later but for now I will go shopping and then wait for the Q3 earning release.

Mike

Let me just be honest the existing business is not the main reasons why I bought NVEC today but it is nice to see that the business is performing better than expected.

Net income is up 64% and they exceed the EPS estimates with 29%. (http://biz.yahoo.com/prnews/060118/cgw035.html?.v=33)

Hmmmm..... This could be another great investment.

Mike

NVE 3rd-Qtr. Earnings Up on Strong Sales
Wednesday January 18, 7:00 pm ET 
NVE Third-Quarter Income Grows Nearly 7 Percent on 55 Percent Increase in Revenue


EDEN PRAIRIE, Minn. (AP) -- NVE Corp. said on Wednesday its third-quarter income grew nearly 7 percent, bolstered by a 55 percent increase in revenue.
The nanotechnology company said for the quarter ended Dec. 31, it earned $401,385, or 9 cents per share, up from $375,172, or 8 cents per share last year.

Revenue for the quarter jumped to $1.7 million, up from $1.1 million last year. Gross profit margin for the quarter came in at 50 percent, up from 39 percent last year.

Shares of NVE, which have traded between $11.50 and $33.25 over the last year, were up 88 cents, or 5.3percent, to $17.60 in after-hours trading on the INET electronic exchange, from Wednesday's Nasdaq closing price of $16.72.


Nano Market Info:
http://www.nanomarkets.net/resources/download/2006%20NanomemoryChapter%20One-edit.pdf

nice afterhour move:
http://finance.yahoo.com/q/ecn?s=NVEC

NVEC: Q3 Results 9c vs 8c; Beats 7c Est; No Guidance

Thursday , January 19, 2006 06:30 ET

QUARTER RESULTS
NVE Corp (NVEC) reported Q3 results ended December 2005. Q3 Revenues were $2.61M; +1.95% vs yr-ago; MISSING revenue consensus by -3.33%. Q3 EPS was 9c; +12.50% vs yr-ago; BEATING earnings consensus by +28.57%.

Q3 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues:         $2.61M        $2.56M      +1.95%        $2.70M      -3.33%
----------  ------------  ------------  ----------  ------------  ----------
EPS:                  9c            8c     +12.50%            7c     +28.57%
----------  ------------  ------------  ----------  ------------  ----------
QUARTERLY GUIDANCE:
Company provided NO Revenue guidance for next quarter.

Company provided NO EPS guidance for next quarter.

ANNUAL GUIDANCE:
Company provided NO Revenue guidance for coming year.

Company provided NO EPS guidance for coming year.

from yahoo:
During CC (time 13:03) Dr Baker specifically mentions second type of MRAM, NVE's patents and advances in SMT mram and that two major memory companies were actively involved. Perhaps he was referring to Hitachi.


Spin-Transfer Switching of Magnetic Devices Using Pulsed Currents — SMT utilizes angular-momentum conservation and spin-dependent transport to manipulate the magnetic state of a device. As a result of SMT, an electrical current can reverse the magnetization orientation. These effects have potential applications in writing data in magnetic random-access memory (MRAM) and magnetic hard disk drives. In collaboration with Hitachi Global Storage Technologies, San Jose, California, we have demonstrated magnetization reversal in 100-nanometer-sized magnetic thin-film devices with ultrashort spin pulses. The devices have two magnetic layers separated by a nonmagnetic spacer layer. One of the magnetic layers, the "fixed" layer, is deposited on an antiferromagnet, which pins the magnetization in one direction. The magnetization of the other layer, the "free" layer, is free to rotate. The devices have two stable states: parallel and antiparallel alignment of the magnetizations of the free and fixed layers. The state can be read by using the GMR effect, which causes the antiparallel orientation to have a higher resistance than the parallel orientation. When a current pulse is applied to the device, the electron spins are polarized by the fixed layer, and they transport this angular momentum to the free layer, thereby applying a torque to the free layer and potentially causing reversal of the free-layer magnetization.

We studied rapid reversal due to current pulses whose durations ranged between 100 picoseconds and 100 nanoseconds. The pulse duration required for consistent reversal decreased with increasing current amplitude; for the highest currents applied, reversal occurred in less than 300 picoseconds. This is the shortest reversal time reported yet for SMTbased switching. Such a result is promising for applying SMT as a method of writing magnetic data in MRAM and magnetic hard disk drives, which will be required to operate at gigahertz rates in the near future. By studying the reversal probability over a range of pulse durations and pulse amplitudes, we determined the crossover between thermally activated reversal and a fully dynamic reversal mechanism. In addition, conditions exist for finite switching probability less than unity over a large range of pulse duration, even in the dynamic reversal regime. Such behavior indicates the presence of large room-temperature thermal fluctuations in these magnetic nanostructures, which may represent a fundamental limitation to nanoscale magnetic data storage.

http://www.boulder.nist.gov/div818/81803/SpinElectronics/

updated chart:

nice presentation:
http://www.cns.cornell.edu/documents/JimDaughtonCNSSymp504.pdf

50 MA has crossed the 200 MA 

Snowcat, Michael and La-onda,

I bought Friday and will add when possible.

The cc was interesting and the licensing with Freescale will hopefully be concluded soon on more favorable terms to NVE.

NVE has just begun to profit from their patents, the shift from contract R&D to sales of their couplers and sensors will drive this company forward in the near future. With St. Judes having a 20% marketshare in the ICD field and the recent problems Guidant had with their reed switches I would expect new sales and increased earnings as the industry shifts to this more reliable technology. With +50% margins the revenue stream should grow quickly.

Should be interesting how this plays out. I agree with Michael that this company is leading the way to the future and the growth possibilities are staggering. Aggressive protection of its patents and future favorable licensing are key to near term growth. A signed contract favorable to NVE with Freescale will lead the way, commercial production of MRAM and future R&D advances should set the stage for this company to move to the forefront as computer technologies make the leap into the future with NVE at the center.

Very exciting!!  Applaud to all.

from TA side it will be interesting if the support will hold

The Wealth Daily Newsletter (Mike Schaeffer) reports on a lot of interesting ongoings in energy - recently - XSXN, RTK, Oil Sands plays, etc......

Yesterday, he hinted about spintronics and how the electrons keep the hard drive (for instance) active without using as much energy as current systems.  He was implying about military uses for the technology......no specifics yet, but I cannot think any other company that is working with it as much as NVEC.  (I rode this from 18 to about 50 a few years ago).
When he plugs something, it is generally on the money (I got in XSNX at .57, RTK at 1.5 etc....)

hi michael,
whats your opinion about this info:

NVEC: Short Interest UP 1.0% to 1.4M in Jan 2006
Wednesday, January 25, 2006 16:22 ET

According to new short interest data from NASDAQ, short interest for NVE Corp (NasdaqSC: NVEC) INCREASED 1.0% to 1,383,418 shares for the month ended mid-January, 2006.

SYMBOL     DECEMBER         JANUARY      CHANGE       %CHANGE      DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
NVEC           1,370,174       1,383,418         +13,244        +0.97%          14

Based on NVEC's 20-day average daily share volume of 103,954, it would require approximately 14 day(s) of buying to cover this short interest.

( [email protected] )
cheers
O.

Hi Oliver and Snowcat

I guess you guys already now my opinion about high short interest in companies with a great business. (if not read the KOMG, CKCM, CTE or NFI thread) Sometimes the short commiunity get it terrible wrong and when that happens there are a lot of money to be made.

Snowcat you are right about the Military connection. MRAM offers unique advantages for military applications (it is very difficult to interfere with the data - as fare as I understand the technology). In fact MRAM is already used in Trident.

Based on to day's activity I would expect that some news is pending. Haven't found out what though

There are so many developments around MRAM that it is just a matter of time before we start to see commercial applications that really can excite the market.

Mike

Good day, average volume up almost 100%

Triple top breakout today!! I think you are right Michael, news might be coming.

Articles like this don't hurt:

http://www.montgomeryadvertiser.com/apps/pbcs.dll/article?AID=/20060102/NEWS02/601020317/1009

From the article:

"Usually, it's very hard to increase the output level by an amount of 10 percent. So if we can make 20 percent, 30 percent, that can be exciting. What was confirmed is that (with MRAM) could be made a 600 percent increase," Fujiwara said.

"We can say it's revolutionary."

Got in after earnings with a 16.20 average so doing well so far, watched the L2 a couple times and have never seen a stock trade like this. 20 cent spreads and mm's moving it all over. Something brought the higher volume today, I am going to get more tomorrow on any pullback.

Bought on your recomendation and after doing more research I am more convinced that we will see 20+ soon even without news.

Wait a minute anyone else see this

Haven't seen it on Yahoo news or NVE website.

http://www.investors.com/breakingnews.asp?journalid=25147160&rb=1

Surprised I missed it

Quote from: boatguy on February 01, 2006, 06:23:13 PM
Good day, average volume up almost 100%

Triple top breakout today!! I think you are right Michael, news might be coming.

Articles like this don't hurt:

http://www.montgomeryadvertiser.com/apps/pbcs.dll/article?AID=/20060102/NEWS02/601020317/1009

applaud to all 
NVEC: Jumps +4.89%; Vol +399%; Last 90 Min of Trading
Wednesday, February 01, 2006 16:22 ET

During the last 90 minutes of today's session, shares of NVE Corp (NasdaqSC: NVEC) demonstrated a strong UPWARD close relative to its 13:30 ET statistics. "Strong Closers" are determined by proprietary Knobias calculations performed during the last segment of each trading day.

sym: NVEC      @13:30 ET        @CLOSE      % CHANGE
----------   -----------   -----------  ------------
PRICE             $17.17        $18.01        +4.89%
VOLUME            38,100       190,000      +398.69%
#TRADES              118           429      +263.56%
DAY-HI            $17.30        $18.48       LATE-HI
DAY-LO            $16.72        $16.72           N/A

looking forward to the next days, glad I have bought @ 16.7

cheers
O.