NVEC

[eliteG]

Profile: NVE Corporation engages in the development and sale of devices using spintronics, a nanotechnology, which utilizes electron spin rather than electron charge to acquire, store, and transmit information. Its products include magnetic sensors to acquire precise data, such as the position of a robot arm, and couplers to transmit data between electronic systems at a high speed. The company provides standard sensors that detect the presence of a magnet or metal to determine position or speed; custom sensors primarily for medical devices; and couplers that use semiconductor input stages, primarily for factory and industrial networks. NVE Corp. also licenses the spintronic magnetoresistive random access memory technology, commonly known as MRAM. It sells its products through distributors primarily in the United States, Europe, and Asia. The company was founded in 1982 and is based in Eden Prairie, Minneapolis.
Website: http://www.nve.com

Trading Idea:  
NVEC is a stock that can move quite rapidly due to its low mkt cap of 78.44M and low float of 4.22M.  When a stock like this shows a long trend breakout it can be very profitable.  

This triangle bottom breakout signal comes complete with a fakeout breakdown.  This means that the stock broke the triangle to the downside but recovered strongly and broke out on the otherside of the triangle.  During the breakdown the stock formed a bullish inverse head and shoulders pattern.. which broke out with heavy volume a few days ago.

Resistance areas on the way up would be 20, 21.50, 25.. with a triangle projection target of ~29.  Lets keep these numbers in mind as potential sell areas.  Below we do not want the triangle bottom to breakdown - this would prove our analysis wrong and at these levels is a reasonable loss to take when compared to the reward.

So what is the motivation for NVEC to head upwards?  Well the triangle breakout may be in anticipation to earnings.  Earnings are released in 1 week(Wednesday July 29 After Market).  The big rumor in this industry is that companies may have to start paying royalties to NVEC.. the company has many patents.. recently 2 new ones.. many pending.  

The specific issue that may be big news for NVEC is the news that another company released.  Freescale Semiconductor(FSL) released what I considered huge news for the memory market.

Freescale first to launch MRAM chip
Monday July 10, 1:05 pm ET
http://biz.yahoo.com/bizj/060710/1313286.html?.v=1

Notice the date of this news release and the non-reaction of FSL stock price.. but check out NVEC's move Monday!    Perhaps NVEC will be due royalties?  It looks like the potential is in for a powerful move!

Trading Plan:
Buy NVEC on Thursday 7/13

trade it good,

[la-onda]

more information also under the following link: 
http://www.3stocksonfire.org/trading/index.php?topic=3423.new#new

[Dracull]

Any stop-loss for this one?

[eliteG]

Any stop-loss for this one?

Hi Dracul - for now we are just holding NVEC but the natural stop point is below the triangle ~ 16

[eliteG]

update NVEC:

NVEC looks to be putting in a nice consolidation above its triangle break.  Lets place out stop below the triangle and 200ma.

------
Position: bought NVEC @ 16.72 on 07/13/2006
Order: Hold
Exit: stop @ 15.30
------

[usedcasting]

Looks like nvec has come back into the building.

uc.

Briefing.com 7/31/06
Excerpt from:
15:07 NVEC NVE Corp strength attributed to news story posted on NVEC's website regarding hearing aid technology (21.96 +4.88)

The Twin Cities Business story posted to the co's website, which is dated Aug 2006, discusses nanotech hearing aid technology

AUGUST 2006


The Next Sound You Hear

by Sara Aase

..."Traditionally, you had to push a button or flip a switch to activate the T-coil, Lawless [Cami Lawless, a hearing aid dispenser at Associated Hearing in Maplewood, Minn.] says.

By contrast, Destiny contains a piece of nanotechnology called a giant magnetoresistance (GMR) switch, which uses electron spin rather than magnetic charge to sense signals and store information. Developed for Starkey by Eden Prairie-based NVE Corporation, the sensors consist of layers of magnetic thin films just a few atomic layers thick--about one-third the size of the mechanical reed switches that hearing aids typically use. This makes the sensors small and sensitive enough to use in even the smallest of hearing aids--a completely-in-the-canal (CIC) device--and allows the Destiny aid to quickly switch modes automatically as a wearer picks up a phone. And this isn't a help solely over the phone lines. "We're hearing that for the first time that people don't want to take their hearing aids out even when they go to bed, because they're not getting any feedback from the pillow," [Starkey R&D executive Tim] Trine says.

With Destiny, Starkey became the first company to incorporate nanotechnology into its hearing aid microphones to all but eliminate hearing aid feedback and allow for easy use with all types of phones. "Using nanotech components lays the groundwork for being able to bring more advantages to users in a much smaller space," industry observer [Paul] Dybala says. "Just the fact that [Starkey was] able to do it is pretty important." According to [Starkey president Jerry] Ruzicka, just a month after releasing Destiny, Starkey's run rate was well ahead of his projection that it would sell a million units in a year's time. But Ruzicka also knows that Starkey's competitors will strive to catch up to Destiny within a year or two. "It's really kind of like an arms race that benefits the consumer," Dybala says...

[ScottishTrader]

NVEC had a strong move friday, up over 12% with a nice reversal bottom pattern put in at 27.50, may be ready for the next leg up.  Earnings out this week, we could see a little run here!

Looking for a move above 31.50-31.65 as a buy pivot today.  Staying above the 13EMA (currently 29.63) would also be bullish if it pulls back some.

One to watch for a short term play.

[Melf Elf]

Looking for a move above 31.50- 31.65 as a buy pivot today. 

Scotsman,

Yeah, a print of 31.66 puts it to the shorts.  This looked like a broken H&S Top, but when the high of a Right Shoulder gets taken out (your 31.65), that's called into question.

I mentioned in the NVEC folder on the Stock Picking Board that this neckline might need to be redrawn.  It's possible that Wednesday's low is the now the second data point for that neckline, and that now we're going up for a Right Shoulder.

Until that's determined though, the print of 31.66 pressures the shorts to cover.

One to watch for a short term play.

The 8-Day Tenkan-sen and the 22-Day Kijun-Sen are Bearishly inverted.  The 22-Day is at 33.335, so if 31.66 gets taken out, that could be short-term resistance.

[usedcasting]

Hey Melf, glad to be the one to give you applaud number 500. Congrats!. You have definitely earned them all and I would say about twice that as well. I'm in nvec and hoping for big things. Thanks for your review.

uc.

[ScottishTrader]

Well look at that!!!

NVEC blew through 31.65 on the open, and I put a market order straight in that got filled at 32.30.

Shoulda given it a bit, as a limit order at 31.7 would have gotten filled during the subsequent pullback.  But man, 31.65 was definitely the key price for today as it just rocketed off this support level

Don't normally look at 1 mintue charts but I'll pu ti up just to show.  Man this is a crazy breakout - I'm already up $2!!

[Melf Elf]

But man, 31.65 was definitely the key price for today as it just rocketed off this support level

Scotsman,

It sure was.  Great call.  Applause.

After the breakout, NVEC pulled back and found support at 31.66 TWICE, then the short squeeze  was on. 

Whoa! 

- I'm already up $2!!

Wonderful.  Nice going.  I was busy fooling around with NOT getting filled on my AL short and with a few other things, and couldn't watch this one.  Glad that you caught it! 

[ScottishTrader]

gotta love it when a plan comes together!!

I understand why you get up so early!!  You gotta make your plans and see what's cooking before the market kicks off or you'll miss all the moves!  (Fortunately for me the markets open at 2:30pm so I don't have to fret with early starts )

Melf, you are all over 3sof today!!!  Many many applauses for your excellent work on so many threads, am just trying to keep up wioth you right now!!  really like the look of KOMG by the way, also DESC has been acting very strong today - was going to get some last week after our conversation on that board, but ended up getting sidetracked into ATML instead (which looked promising but didn't go anywhere).  Must remember:  plan the trade, (remember to) trade the plan

Anyway, I hope you are enjoying yourself today, lots going on!!

Cheers,

the Scotsman

[Melf Elf]

gotta love it when a plan comes together!!

Scotsman,

That is a good feeling.  Good for you!   

I understand why you get up so early!!  You gotta make your plans and see what's cooking before the market kicks off or you'll miss all the moves!

Right.  I like to study charts and try to understand what's going on before I do anything. 

Melf, you are all over 3sof today!!! 

I have done a lot of running around today, haven't I? 

Many many applauses for your excellent work on so many threads, am just trying to keep up wioth you right now!!

Very kind of you.  Thanks.

I  really like the look of KOMG by the way,

I do, too.  I thought that I was going to get snookered, buying the Symmetrical Triangle breakout, but this second breakout gives the chart a better look.  I'm watching that parallel line that I created, coming off the 34.82 high, for a possible morph.  It's at 35.91 for today's trading, so we're below it by more than $1.00.  I'll take a little if we get there, just in case.

also DESC has been acting very strong today - was going to get some last week after our conversation on that board

Yeah, it got into the 4s, as we discussed.  I liked it coming off that Wave 5 fakeout, but it's too thin for me.

but ended up getting sidetracked into ATML instead (which looked promising but didn't go anywhere).

Haven't followed it.

Must remember:  plan the trade, (remember to) trade the plan

Yep!  It helps alot to have a strategy.

Anyway, I hope you are enjoying yourself today, lots going on!!

You, too! 

lots going on!!

Yeah, right now, INSM is champing at the bit for that breakout at 1.35.  It's sitting there at BID 1.33...ASK 1.34.  Be nice to see that break out.  Thanks for your hard work on that one, and many others.

[la-onda]

awesome 

NVE 2Q Profit Triples
Wednesday October 18, 5:22 pm ET
NVE Profit and Sales Shoot Up in Second Quarter, Shares Fly After Hours

EDEN PRAIRIE, Minn. (AP) -- NVE Corp., provider of nanotechnology products, said Wednesday net income for the fiscal second quarter more than tripled as product sales jumped 87 percent.

Net income shot up to $1.28 million -- 27 cents per share -- versus $363,968 or 8 cents per share in the year-ago period. Total revenue, including product sales and contract research and development, hit $4.4 million, up 44 percent.

"Strong product sales drove record revenues and profits," said NVE President and Chief Executive Daniel A. Baker. "NVE's gross profit margin increased to 67%, our eighth consecutive quarter of sequential increase, and our operating margin increased to 42%."

The results sent NVE shares higher in after-hours trading, rising $3.73, or 11.7 percent, to $35.60.

[usedcasting]

Conference call at 11:00am. Guidance may have an additional impact either way. Freescale royalties on NVEC patents are a big question mark.

uc.