Company profile, NVE Corporation (NVEC:nasdaq)

Business.  NVE Corpproduces computer microchips that are made with leading-edge technology (spintronics) to efficiently acquire, store, and send digital information.  The customers are a few large companies involved with medical devices, national security, and the electronics industry.

Business plan.  NVE Corp. earns licensing fees and sells microchips to distributors or end-users at a high net margin (40%), which allows the company to control its sales prices.

Market position.  “Spintronics semiconductors” is the name of an emerging manufacturing industry that relies on nanotechnology.  NVE Corp. competes by owning intellectual property that excludes unlicensed competitors.

Upside potential.  NVE Corp. is a candidate for growth or acquisition based on its intellectual property and business success.

Downside potential.  Major risks to business success are the loss of a large customer and competing technology.

Stock valuation.  NVE stock (NVEC:nasdaq) is a small-cap growth stock with 58% institutional ownership.  NVEC does not pay dividends.  Loss of corporate earnings would likely devalue the stock.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: