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Our New Surprise Pick: Dataram Corp. (NASDAQ: DRAM)

DRAM is a company we alerted on back on September 24. On that day the play rallied to a high of 1.93 after opening at 1.55. Readers were able to secure upwards of 24% intraday gains.

Since then the play has pulled back and is now trading at 1.11. We believe that as a long-term trade idea DRAM presents very strong upside potential.

The most telling facet of this story is in a letter from the CEO and Chairman, David A. Moylan, directly to shareholders. In that letter, he put his cards right flat on the table in this key document (see full doc here):

“We entered FY2015 with great uncertainty. By the end of Q2 (Oct. 2014), the Company had exhausted its financial lifelines and was distressed. With investor support and a new leadership team, Dataram re­focused its efforts to concentrate on what it does best, and has done extremely well since incorporating in 1967 – delivering customized memory solutions into complex technical environments for our business customers around the globe. In late January 2015, and with new leadership, the Company began aggressively streamlining operations to establish the foundation for global growth, while maximizing shareholder value. The last nine months have not been an easy journey – we made many difficult and necessary decisions to ensure the Company remained viable and relevant.”

Folks, this is a super ripe turnaround story right now, as is every great investment opportunity that has the juice to produce major returns for a larger time horizon.

Basically, the turnaround has all the hallmarks of a good one: The dead weight (ie, the AMD contract) has been cut, the key players have better-aligned incentivization schemes, costs were sliced, and the board was empowered. That’s how you do it.

The key we see here is this: The market didn’t even see this letter.. yet. It’s buried on the company’s site. That gives you an edge right now.

Check out the technicals on DRAM:

• DRAM has 3.32M shares outstanding. This is a company with a very tight share structure.

• DRAM has seen a consistent rise in daily volatility and average volume now stands at 50K.

• DRAM has a 12-month high of 3.56!

• DRAM is trading below its 50 DMA of 1.27 and below its 200 DMA of 1.92.

• DRAM has an RSI that is 41.

About DRAM

DRAM (Dataram Corporation) develops, manufactures, and markets memory products primarily used in enterprise servers and workstations worldwide.

DRAM provides customized memory solutions for original equipment manufacturers (OEM); and compatible memory for various brands, as well as a line of memory products for Intel and AMD motherboard based servers.

Take a look at the company's products HERE

Semiconductor Sales  Expected To Surge In 2015 ($332B)

The Global Semiconductor Market 2015 - 2020 research report forecasts revenues for key services across key geographies. The global semiconductor market is forecast to reach $332bn across 2015, representing a 3.4% growth in comparison to $316bn in 2014. This research forecasts that the market will grow at a 5-yr CAGR of 2.9% over 2015 to 2020, with the majority of growth being driven by mobile, automotive and industrial application markets. The consumer electronics and data processing application markets are expected to remain at the end of the growth spectrum with limited expectations for any innovative development to lead market demand.

Key product and service applications for semiconductor technology include innovations in smart devices and hyper-connected communications networks, as well as medical devices and efficient infrastructure across the energy sector. There is still capacity in the semiconductor market for innovative semiconductor production methods that drive expenditure reduction, productivity, and efficiency as the demand for performance increases.

DRAM Maintains ISO 9001:2008 Compliance - Demonstrates Commitment to Quality and Engineering Excellence

DRAM recently announced that it had successfully completed a planned three-year recertification audit by an independent, accredited ISO assessor, and was found to have maintained compliance—without issue or comment—with the requirements of ISO 9001:2008, an internationally recognized standard for quality management and quality assurance.

Dataram's Quality Management System (QMS) has complied with the requirements of ISO 9001:2008 since 1998.  The Certificate of Registration applies to Dataram's corporate headquarters in Princeton, NJ for Sales and Technical Support and to its manufacturing facility in Montgomeryville, PA for Design, Manufacture, and Distribution.

In Summary

DRAM is a long-time leader in the memory space. With memory stocks starting to rip again, and the broad market being led higher by this sort of tech play, DRAM may offer incredible long-term value as well short and intermediate-term technicals that suggest both a trade and an investment.

Company Website:  http://www.dataram.com

Quote:  http://finance.yahoo.com/q?s=DRAM

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