Stock Alert for Netlist Inc. (NLST)
  • Stock Alert for Netlist Inc. (NLST)
  • Stock Alert for Netlist Inc. ($NLST)
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    Time to take a look at Netlist (NLST)?

    Netlist, Inc. (NLST) was one of the great stock success stories of 2009.  The stock limped along at around 60 cents for much of 2009, but then caught fire and zoomed to $8.00 per share in the magical month of November.  With the news of the impending release of their “game-changing” memory module, they took the market by storm.  The product allows the server to believe it has more main memory than it is supposed to and is expected to put them in direct competition with Cisco (CSCO) and with a competitive advantage.

    Since its almost 900% gain in November, things have been pretty quiet for NLST.  In fact, the overall trend of the stock has been down.  The company itself is still strong.  NLST is still posting losses, but the gap is narrowing.  Its balance sheet shows a great deal of cash, no debt and strong liquidity ratios.

    The chart is where I want to focus your attention on.

    Since I am a short-term trader, I don’t expect to be around in this stock very long.  Short-term, it might be setting itself up for a bounce.  There are a great number of people that are trapped in it at higher prices who will be selling into any strength.  That is why (absent any news) any rally will be short-lived IMO.

    Have fun and trade well,

    Jeffrey Dean, Editor

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