Good morning traders,
Dataram corp. (NASDAQ: DRAM)- Updated full report
This one moved 12% quick yesterday morning showing just how small the float has become after the R/S a few days ago. We think it is a good possibility that we could see a good breakout above the $2 level this week. Below we have provided a detailed description of the company’s operations and estimated value of the recent US Gold acquisition.
Dataram Corporation (NADAQ: DRAM) is a leading independent manufacturer of memory products and provider of performance solutions that increase the performance and extend the useful life of servers, workstations, desktops and laptops marketed by leading manufacturers such as Cisco, Dell, Fujitsu, HP, IBM, Lenovo and Oracle. Dataram's memory products and solutions are sold worldwide to OEMs, distributors, value-added resellers and end users. Dataram is also a provider of highly specialized IT solutions and manufactures and markets a line of Intel-approved memory products for sale to manufacturers and assemblers of embedded and original equipment.70 Fortune 100 companies are powered by Dataram. Founded in 1967, the Company has a rich history with a strong presence in the United States, Europe and Asia. The Company has designed memory for 50,000+ systems and boasts one of the most complete portfolios in the industry. Dataram products range from energy-efficient DDR4 modules to legacy SDR offerings. Backed by in-depth quality test programs, nearly 50 years of manufacturing expertise, and a lifetime warranty, Dataram memory products are built to last. In the past 14 months, Dataram, with investor support, appointed new leadership (CEO, CFO, and board of directors) to refocus, “restart” and return the Company to sustainability and profitability which it is projected to achieve in early FY 2017. The “restart” has already delivered more than $4.5 million in net cash savings to date. In June 2016, Dataram entered an agreement to acquire US Gold Corp., a U.S.-focused gold exploration and development company. The acquisition will help diversify risk and bring assets valued at $160 million based on Net Present Value (NPV).
Market Opportunity
Dataram provides volatile (ex. RAM, DRAM) memory solutions. According to
MarketsandMarkets, the non-volatile memory market is expected to reach $80.54
billion by 2022, at an estimated CAGR of 9.93% between 2016 and 2022. Statista
reports that in 2010, revenue from DRAM sales worldwide amounted to $39.68 billion.
Both segments of memory are enormous opportunities that the Company is able to
capitalize on with its extensive history, expertise, superior products, talented team and
innovation. Dataram has a massive customer base and an international footprint where
it works with some of the largest companies in the world.
Competitive Advantage + Growth Drivers
Dataram has a rich, nearly 50-year history and is experiencing a deep turnaround. The
Company is dedicated to its customers and clients and offers some of the best cost effective
solutions, unique programs, and quality services. Some advantages include:
High-Quality Products: memory manufactured/assembled and tested in-house to
ensure quality, performance, OEM/system compatibility – quality is never
sacrificed, multiple certifications and memberships validate quality/fully compliant
with JEDEC specs, customizable systems and installations, lifetime warranty.
Stellar Team: average employee tenure of more than 15 years; highly experienced
– customer-centric care (pre-sales to post-sales support) from global team –
consultative approach (finding the best solution); customization (business model
allows for tailoring solutions and quick response).
New Solutions and Product Development: Introducing new product solutions
(Flash, SSD, etc.) – continuing development of DDR4 enterprise memory.
Expanding Share: Dataram is expanding its services and has recently entered new
markets including India, Middle East, and North Africa.
Acquisitions: in discussion with several companies about potential deals to enable
growth.
DRAM’s securities have been moving up and consolidating in a stair step pattern and we are hoping to see this continue this week.
The Team
***Initial report update***
Good morning everyone,
We are featuring a previously profiled company this week that is starting to pick up steam after a recent one for three reverse split leaving a tiny 720K public float.
Dataram Corp. (NASDAQ: DRAM)
Dataram Corp. has just under $26M in annual sales from their manufactured memory products and performance solutions business. Even after the recent acquisition of US Gold Corp and the Keystone Gold project this security still boasts a tiny $2.4M market cap. It appears that these securities have been beat down post split from the $3-$4.50 range and could be ready to pop.
Activity has recently picked up and the securities in Dataram are showing lower lows with an RSI of only 41.
Chart
DRAM Highlights
Recent acquisition estimated to be valued over $150M
Insider ownership- 31.2%
Manufacturing/memory business sales- $25.6M
Float- .72M
Shares Outstanding- 1.54M
Employees- 49
Recently hired Dave Mathewson as lead exploration engineer
The Team |
|
