Netlist, Inc. (NASDAQ: NLST)
Netlist, Inc. (NLST), a high performance memory solutions for cloud computing and storage markets company yesterday announced a new partnership with Samsung to produce a new storage class memory for Samsung. Under terms of the agreement NLST will receive $23 million from Samsung.
Netlist, Inc. CEO Comments
“This is a transformational partnership that validates our unique IP and provides an accelerated path for delivering NV-P to the mainstream market. Samsung is the unparalleled leader in memory and recognizes the value of disruptive technology in this sector,” said C.K. Hong, President and CEO of Netlist. “Samsung’s leadership in memory and Netlist’s expertise in hybrid storage are highly complementary, and together create a powerful platform for driving broad market adoption of this new storage class memory solution.” PR Newswire
NLST Technical Analysis
NLST gapped up in price yesterday to $0.95, up from the prior day’s close of $0.66, which is a 44% increase on the favorable news. Taking a look at the daily chart, we can see the last time NLST traded above this price level was on March 24th, when it closed at $1.35. On that occasion, NLST tanked all the way down to lows of $0.52 in the next day of trading, a 61% drop in price. Since that big drop in price NLST has been trading in the range of $0.28 – $0.70. With the gap up, NLST has broken through that range and the next significant resistance level would be the $1.20-$1.25 level reached back on March 16th. NLST has a float of 39.27 million shares and was trading over 8 times the normal daily trading volume. NLST did reach pre market highs of $1.16, but gave back $0.21 at the open, or equivalent to 18%. For trading purposes, my entry point would have been $1.00 looking for a run to the pre market highs of $1.16. My stop loss would have been $0.95 fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Netlist, Inc. designs, manufactures, and sells a range of logic-based memory subsystems for the datacenter, storage, and high-performance computing markets worldwide. Its memory subsystems consist of combinations of dynamic random access memory integrated circuits, NAND flash memory components, application-specific integrated circuits, and other components assembled on printed circuit boards. The company also offers NVvault products that consist of battery-free and battery-powered flash backed cache memory subsystems, which targets RAID storage, application acceleration, and mission critical data integrity applications. In addition, it offers specialty memory modules and flash-based products for use in data center and industrial applications. The company markets and sells its products primarily to original equipment manufacturers, hyperscale datacenter operators, and storage vendors through a direct sales force and a network of independent sales representatives. Netlist, Inc. was founded in 2000 and is headquartered in Irvine, California. Yahoo Finance