Netlist, Inc. (OTCMKTS:NLST) is headed back to the top after a 50% plus pull back. The company has once again shown it has what it takes to outperform its peers if recent developments are anything to go by. The announcement that the company is set to deliver high-performance technologies for the Supercomputing community all but continues to strengthen the stock’s prospects and sentiments.
Netlist Price Analysis
Growth in earnings relative to the industry is another development that has once again reaffirmed chatter that the company is in a phase of robust growth. Netlist has also been aggressive on the signing of strategic partnerships, as it looks to unlock the power of today’s storage applications. The fact that the company is well financed is another achievement that positions it to continue pursuing growth opportunities at an aggressive pace.
Investors have reacted positively, ever since it became clear Netlist has every reason to succeed in the storage solutions business. A spike to this year’s highs of $0.75 did attract some form of selling, resulting in a 50% pullback to the $0.30 level.
However, the stock has once bounced back nicely as the upward momentum continues to gather pace. All indication is that the recent pullback was a minor correction. Buyers are slowly coming in, triggering a bullish trend that looks set to catapult the stock to this year’s highs.
After the recent bounce back, the stock now faces immediate resistance at the $0.49 mark, above which the stock would have turned bullish. Above the $0.49 mark, the stock should be on its way to this year’s highs of $0.75.
What Does Netlist Do?
Netlist is a computer and Technology Company that designs, manufactures and sells modular memory subsystems. The company develops and offers high-performance SSDs and modular memory subsystems to diverse industries. Its flagship products are NVvault and EXPRESSSvault that offer enhanced data storage capabilities.
High-Performance Storage Technologies
Netlist is the subject of renewed investor interest on announcing it will showcase its high-performance storage technologies at the Supercomputing 2018 Community convection. The company is to showcase NVvault DDR4, designed to provide data acceleration as well as protection in JEDEC standard interface.
The company will also showcase NVMe SSD storage solution designed to excel in demanding workloads such as data centers.
“Netlist’s family of enterprise-grade NVMe SSD’s were launched this summer and bring a compelling mix of high performance at a lower cost, compared to competitive solutions. Netlist is currently sampling with several storage and server customers, as well as new high performance compute (HPC) customers at Supercomputing 2018,” Netlist in a statement.
HybriDIMM which combines existing NVM technologies to deliver lower cost memory is another solution on display at the convention. The cost-effective data storage solution seeks to make it easier for data center operators to reduce the cost of running data center applications.
Nyriad Strategic Partnership
In a bid to enhance the capabilities of current storage products, Netlist has inked a strategic co-marketing agreement with Nyriad, under the terms of the agreement Netlist is to leverage Nyriad’s software to unlock the power of all demanding storage applications.
The two will work together to advance GPU-accelerated storage with the aim of creating high-performance systems that can achieve high levels of data resiliency as well as integrity. Nyriad and Netlist will also collaborate on marketing initiatives as well as benchmarking and performance testing.
“Myriad is a leader in advanced data storage solutions and when combined with Net list’s memory solutions, can deliver substantial performance benefits at minimal cost, to end-user applications across the rapidly growing big data and high-performance computing marketplace,” said CEO C.K. Hong.
What Next For Netlist
Netlist’s solid performance look set to continue as the company continues to outperform the overall industry. For starters, the company has returned an average of 8.62% this year compared to an average of 2.23% for computer and technology companies.
Zacks equity research rates the stock as an ‘outperform’ and expects it to continue outperforming heading into year-end. The fact that the company’s earnings have moved up by 12.5% this year attests to the rapid growth phase.
The stock looks set to continue powering high as it has been the case for the better part of the second half of the year. In our view, the recent pullback provides an ideal buy opportunity for investors who missed out on the initial Bull Run.
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Disclosure: We have no position in NLST and have not been compensated for this article.