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Good morning,
New Momentum Alert: Dataram Corp. (NASDAQ: DRAM)
Company Website: http://www.dataram.com/
About Ticker DRAM:
DRAM refocused its efforts in the second half of fiscal 2015 and managed to improve revenues. The company is now poised to deliver even greater returns for shareholders and has presented good upside opportunity over the short term.
Having traded as high as 3.56 in the last 52 weeks, the company is once again accessible.
DRAM develops, manufactures, and markets memory products primarily used in enterprise servers and workstations worldwide.
It 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.
It’s important to point out that DRAM is in a very elite space and counts as its peers, companies like Hutchinson Technology Incorporated, Western Digital Corporation, Hewlett-Packard Company, and Oracle Corporation.
To put DRAM’s growth potential in perspective, Oracle is trading around $36 a share and has a market cap of more than $154 Bln.
The company’s decision to refocus efforts on core business comes at a pivotal time and presents huge growth opportunities.
One of the key drivers for DRAM’s upside potential is the ever-solid semiconductor market which will reach $332B globally this year.
A recent report on the sector indicated a 2.9% CAGR to 2020 for semiconductor industry and a 6.7% rise from 2014 in the semiconductor equipment market size during 2015 across the world.
DRAM is positioning itself to capitalize on the growth and recently promoted Anthony M. Lougee from Controller and Chief Accounting Officer to Chief Financial Officer (CFO) and Corporate Secretary, effective August 17, 2015. Mr. Lougee has been Dataram's Controller and Chief Accounting Officer since 1999.
DRAM And The New Jersey Economic Development Authority
In a September 15 release DRAM added some important details to its financial results. CEO and Chairman Dave Moylan said that, "In September, the Company was formally informed by the State of New Jersey's Economic Development Authority that it was approved to sell the associated tax benefit of $2.275 Mln of its Net Operating Losses (NOLs).”
That certainly presents a sturdy picture for DRAM. It also gives strong backing to the technical setup which as you’ll see below, is very solid!
DRAM Technicals
· DRAM is trading below its 50 DMA of 1.57 and has big momentum coming into today’s session.
· RSI is 53 which means DRAM is already moving towards higher RSI levels where its traded as high as 2.55!
· DRAM exploded on June 11, reaching a high of 3.20 and delivering up to 49% intra-day gains! The current setup is strikingly similar.
· There’s been tight trading in the company, however, volatility levels are climbing. Average volume is now approaching 30K which signals a rise in investor interest.
Conclusion:
DRAM has a reachable second resistance point of 1.60.
This level could easily be surpassed given the huge rallies exhibited in the past!
A break above 1.54 could signal a new leg up and DRAM could very well break into new trading highs.
Entering at current accessible levels is therefore very important for savvy traders.
Remember, we always encourage you to do further research. Never take our word for it, read our disclaimer to see why, and of course always consult a professional.
It is important that you realize the highly speculative nature of this situation.
Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.
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