NVE Corp (NASDAQ:NVEC)

spintronics? uhuhh

Strong fundamentals, but risky

Aging IP portfolio and the loss of key engineering talent.

Killer technology, huge patent portfolio, and very strong fundamentals.

leading IP position, tech reduces cost and increases performance for many significant electronic device sectors

I hope to see gains and it seems logical that it will appreciate.

The MRAM part is a speculative play, but the financials alone of the this company look compelling. Should have continued good growth, and if MRAM becomes reality, growth will be explosive.

NVEC is a nanotechnology corporation that is set to outperform. Over the past few months they have been set at a moderate to strong buy and I believe they will show significant gains.

This company specializes in spin technology used for storing data. To get a more accurate view of how their product stacks up against current solid state and disc drives, go to their website and watch their presentation. In short, spin technology is quite, uses less energy, and doesn't deteriorate. This is the coming future of hard drives.

Speculating - #8 on Forbes best Small Companies
From Yahoo Finance:
PEG (5 year expected) : .78
P/Sales: 8.2
Profit Margin: 43%
ROE: 25%
ROA: 21%
Quarterly Earning Growth (YOY) : 12.1%
Cash on Hand: 2.78 ml
Debt: ZERO!

Strong fundamentals, improving margins, qtrly growth, low P/E relative to industry, MRAM is key.

This is a growth pick in nanotechnology. These are not really my areas of expertise, which is why I'm throwing this pick onto this secondary profile of mine. Still, the company appears to be reasonably valued even based on their current products, so if any of their new catalysts end up hitting it big, this could be quite a long-term steal. The prospects in regards to their MRAM unit are particularly promising.

For a much better write-up than I could ever give, see Wade Slome's article on Seeking Alpha:

http://seekingalpha.com/article/180875-smallcap-nanotech-company-nve-is-wade-slome-s-highest-conviction-holding-here-s-why

NVEC (NVE Corp)
NVE Corp develops and sells sensors that are used to acquire and transmit data in industrial, scientific and medical applications. The uniqueness of their products is that the devices us "spintronics" (a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. I've seen pictures of these products, and they are much smaller then a fly, and some apparently weigh less then a mosquito. They have 52 patents that provides them with a moat with this technology.

Usually I avoid recommending any company who's products I don't understand fully, and I really have no idea what the competitive landscape for this company may look like in a decade from now, but I'll give this one an exception based on their great financial. This company makes a whopping 42% profit margin! That is insane! I can't think of one other company that consistently can kick out that kind of margin. Then add in their growth over the past 5 year average of 16% on their top line and 44% on their bottom line, and compare that to their trailing earnings multiple of 17 and forward estimates of 14, and you have quite a deal, especially when you consider they have $4 million in cash and no debt.

So again, although I have no idea what this may mean (from their annual report) "A limited number of other companies claim to either make or have the capability to make GMR and TMR sensors. Also, several competitors make solid-state industrial magnetic sensors including silicon Hall-effect sensors and anisotropic magnetoresistive (AMR) sensors. We believe those types of sensors are not as sensitive as our GMR or TMR sensors." I'll still be placing a small bet on this company due to the great growth rates it is experiences combined with it's incredibly fat profit margin.

RK

low analyst coverage, high ROE, no LT debt, high EPS growth over past 3 years

it's troubling that only 0.25% is held by insiders (so says yahoo finance)

company is a cash machine. No debt. Great technology.

Underperform

Best products, MRAM, labratory on a chip will be huge, anti tamper mram, among other future products.

another company around 10% off its highs at a buy point...They make a cool memory product that could become huge...They have beat earnings estimates each quarter including a big beat last quarter

Really fantastic tech. A common sense approach to memory state change; designer molecules. I really could care less about the short term...this one's about long term patent strength.