Let's talk about netlist. What's up
investors and welcome back to another
video. Netlist is a computer storage
device company that has caught the
attention of the whole world at the
moment and for a good reason. The stock
is up more than 300% since the beginning
of January and this looks set to
continue so today I will be looking at
who exactly are netlist? we will look at
what has the stock soaring right now.
and the latest news. I will look at an
analysis of upcoming events and
catalysts and I will look at an analyst
rating and nlst technical charts to see what I
consider to be the best entry point that
you can get right now. Finally we will
check out the latest financials and I
will give you my conclusion on Netflix
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you been holding this stock long term or
did you manage to get in when the stock
was only one dollar at the end of last
year drop a comment and let me know I
want to point out that I'm not a
financial advisor and this is not
Financial advice always do your own due
diligence now let's get into it. so who
So Who are netlist? and what did they do?
Netlist was founded in California in 2000 the
company is a leading provider of high
performance ssds and modular memory
subsystems to the world's leading
Enterprises netlist specializes in
hybrid memory Solutions the company's
patented memory Technologies provide
Superior performance and high density in
a cost-effective solution from database
to Enterprise applications netla serves
diverse industries that require Superior
memory performance to empower critical
business decisions in today's
data-driven environment netlist has a
long history of being the first New
Market with disruptive new products such
as the first load reduced dimm netlist
was also the first to bring nands flash
to the memory Channel with its Envy volt
MVD IMM these Innovative products built
on netlist early pioneering work and
other off-chip technology advances that
result in improved performance and lower
costs compared to Conventional memory
netlist holds a portfolio of patents
that maniac considered to be seminal in
the areas of hybrid memory storage class
memory rank manipulation and Rule and
load reduction amongst others the
strength of netlist patent portfolio
reflects as many years of research and
development and track record of being
disrupted with new products to the
market.
netlist's strategy is to marry its
unique broad-level intellectual property
with a thorough understanding of
semiconductor building blocks and system
level applications to deliver
performance cost and time to Market
advantages to oems the company's
manufacturing and testing facilities are
in China (OTC:NLST)
but this is very much a global company
with offices across the U.S Canada and
Israel this is not your average OTC
stock
and we can see netlist products here
which is broken to three main categories
Enterprise SSD embedded Flash and memory
modules
in the past few weeks netlist stock has
been rising rapidly an nlst stock is up
more than 300 since the beginning of the
year
and a lot of this is due to the
anticipation of the end of some serious
netlist legal battles the one that has
had a large impact recently is this one
netlist wins 303 million dollars in
patent infringement trial against
Samsung. (Netlist vs Google upcoming)
the award resulted from a trial
that lasted six days and involved five
netless patents that are listed here
the products found to infringe these
patents were all Samsung memory and high
bandwidth memory components so first of
all this is a big win for a netlist not
only does this have a big payout of over
300 million dollars but the significance
of proving that there has been patent
infringement in a court of law means
everything here and this 300 million
dollars is just the tip of the iceberg
and is actually small in comparisons to
what is expected to come next after all
this is the conclusion of netlists 16
month long casing in Samsung netlist has
a much more lucrative case on the
horizon that has been going on for much
longer so the Samsung case has ended
with the jury's unanimous verdict
confirming that all five netless patents
had been infringed by Samsung that none
of netlist patents were invalid and that
Samsung willfully infringed those
patents and money damages were owed to
netlist in this case but what is most
important here is that the jury left no
doubt that Samsung not only willfully
infringed patents but currently uses
netlist technology without a license on
strategy products which collectively
represent the future of Samsung's memory
business as it says here the free ride
and efficient infringement of
intellectual property belonging to small
innovators by industry joints remains a
serious issue for our Innovation
ecosystem we hope this case serves as a
reminder of this problem to policy
makers as well as a wake-up call to
those in the memory industry that are
using our IP without permission now this
comment from the netlist CEO sounds
almost like it is directly aimed at
Google
which leads us on to what comes next for
a netlist and will nlst stock keep going
up
this article on Seeking Alpha gives a
very good quick summary netlist key
upcoming catalysts so the first one here
is the Samsung case this is obviously
over and at least have one so what's
next netlist is currently in what may
become the largest patent infringement
lawsuit of all time the massive payout
potential of the lawsuits the company is
in has created an asymmetric opportunity
and a tremendous risk to reward ratio
so if you don't know much about netlist
or the long-standing cases then check
out my netlist videos from last year
where I went into this in more detail
but netlist is currently in lawsuits
with Google Samsung and Micron with
their most significant case being
against Google
these lawsuits are over whether or not
the company is infringed on multiple
patents including some which are seminal
Google was caught using technology red
handed in its service in 2009
since then Google has challenged the
validity of netlist's most important
patent the 912 patent
this case was taken up to one step below
the Supreme Court where it was
ultimately decided in Netflix favor now
netlist is battling with the companies
over what they will have to pay for the
infringement that has been occurring for
more than a decade now at the time this
article was written the Samsung case had
not yet been decided however
this is probably by far the smallest of
these cases and the payout as we have
just seen was over 300 million dollars
now there is some really good
illustrations here in this article that
have been created by stocktwits poster
stalked I will put a link to this
profile in the description below check
this out and follow this account if you
follow netlist
stocked is posting details about netlist
every single day and keeping everyone up
to date
in fact he has created a brand new
updated current litigation sheet as of
May 5th so go check this out
so now we have the impending Catalyst
and risks of this play and this is
significant on average between five and
six thousand patent infringement
lawsuits are files per year
of which 95 to 97 end in a settlement
now we know for a fact that Samsung and
netlist have had settlement discussions
yet netlist did not settle and that is
of key importance in my opinion so at
least 95 of cases end in a settlement
but netless cases so strong that there
was no way that they were going to
settle
and I expect to see the same thing again
in the Google case the stock has been
going upwards now for months dating Back
to December 2022 the anticipation of the
trials has led to the stock price
increase that will likely continue to
increase as time goes on remember now
that netless have won their case against
Samsung the big fish of Google is still
out there leaving plenty of stock growth
potential after the Samsung case but of
course this stock is not without risk
netlist is a company mainly valued as a
series of binary players around
litigation these legal battles give the
company a significant risk to reward
potential still they also leave the
company exposed to high volatility on
legal decisions and significant jobs in
valuation upon unfavorable rulings
another risk to consider is that the
company is listed on the OTC which makes
it have less liquidity than a
traditional investment and can leave it
open to more volatility than a typical
stock and I would look at the financial
statements interest of a moment to show
the real financial position of netlist
right now although the Samsung decision
will go a long way towards significantly
boosting netlist's finances the
conclusion to this article states that
the company is a lottery ticket of an
investment with the asymmetric
opportunity that it presents if you
invest be prepared for high volatility
and many Binary Court decisions which
affect valuation now I fully agree with
this but I expect that the overall
projection of the stock should remain in
the very bullish trend for the next few
months as the Google case draws closer
when we look at tip ranks we can see
that netlist has been giving a buy
rating from one Wall Street analyst they
have set a price tag to seven dollars
which is 45 above the current price of
470 the fact remains that this is an OTC
stock and that most analysts will not
set price targets for OTC stocks
before we look at the netlist financial
statements and the charts if you are
enjoying this video then smash the
thumbs up and drop a comment below how
much do you think netlist will win in
their case against Google remember that
Jason shaysby of Ireland Manila is
netlist's main man this Law Firm is
responsible for some of the biggest
multi-billion dollar cases such as the
2.2 billion dollar award for vlsi
technology in their case against Intel
so how much do you think that netlist
could be awarded against Google leave a
comment and then subscribe to the
channel if you're new and if you want to
see regular netlist updates
now looking at trading view we can see
the incredible run that Network stock
has been on since the end of last year
the stock has been moving in this upward
channel for the past five months hitting
regular support and resistance with the
recent Samsung case causing a huge Spike
up to over six dollars
a previous level of resistance at just
over four dollars can now be seen as a
support level indicated here with the
white arrows however with the stock
currently trading at 480
I feel that there will be a little dip
in the coming weeks before the upward
Trend continues I anticipate a pullback
later this month to between four and
four dollars forty which would represent
a good entry point before the stock
moves upwards again
this is not Financial advice and I am
not a financial advisor this is just my
opinion of what I think is a good entry
point if you appreciate the fact that I
give you my opinion on what I consider
to be a good entry point then hit that
thumbs up but remember to always do your
own due diligence before making any
investment decisions now taking a quick
look at the netlist financials we can
see that netlists have total assets of
55 million and total liabilities of 32
million dollars this gives the company
an asset to liability ratio of 1.7 to 1
which is strong and gives stakeholder
Equity of 23 million dollars overall the
assets of the company have decreased
although cash has increased the combined
cash and restricted cash figure have
actually decreased and the equity
valuation of 23 million dollars is
actually far below the market cap of
over 1 billion
so keep this in mind if you're thinking
about investing in netlist this is a
company that is very Reliant now
on the outcome of its legal battles just
remember that these figures are up to
April 1st and therefore do not include
any of the 300 million dollar win
against Samsung so that needs to be
factored in too looking at the income
statement we can see that the sales and
profits are massively down on the same
period last year but the biz but the
biggest expense by far here is the
company's legal fees this goes to show
just how much focus is being put on
their league of battles right now as
they draw to a conclusion 11 million on
legal expenses in the first three months
of 2023 is more than two-thirds of the
whole company's expenses for the period
so guys what do you think of netlist and
how high do you think the share price
will go drop a comment down below if you
enjoy my content then smash the Thumbs
Up And subscribe to the channel if
you're new and drop a comment if you
would like to see another netlist update
soon there has been some more news just
today while I have been editing this
video nothing in my videos is financial
advice in any way and I'm not a
financial advisor if you want to invest
in netlist stock
or not that is your choice and I highly
recommend that you do your own due
diligence thanks for watching the video
and I'll catch you in the next update