ericd1 Posted January 20, 2011 Share Posted January 20, 2011 I copied this thread from the MU topic...NVE is an interesting nanotech, profitable, growing and interesting products on the horizon. I started looking around the nano-tech industry because I believe future developments could provide game-changing products. I wanted to invest in a pure tech company rather than a tiny division of a major like GE...NVE actually produces commercial nano-tech products and makes a profit. They also have no debt and are expanding their business. Growing and profitable made sense to me if you want to make a long-term investment in a high-tech industry--similar to BYD. They also hold a large number of patents and a lot of their on-going R&D is paid for by prospective clients (interesting business model)...Sales and profits growth has been solid and > P/E (under-valued). I read the quarterly transcripts and listened to recent calls. I don't know if it will be a big winner, but it feels good to have my toe in the water... Today NVE reported 3rd Qtr Results - NVE earned $3.4 million, or 70 cents per share, for the quarter that ended Dec. 31. That's compared with $2.8 million, or 57 cents per share, in the same quarter a year earlier. Revenue rose 20 percent to $7.96 million as product sales increased. Long NVEC Link to comment Share on other sites More sharing options...
Josh4580 Posted January 20, 2011 Share Posted January 20, 2011 How do you think of valuation with NVEC, its currently at 23X free cash flow. Link to comment Share on other sites More sharing options...
Guest HarryLong Posted January 20, 2011 Share Posted January 20, 2011 Eric is exactly right. It's very well run. I've spoken to Dr. Baker. He is very rational and very impressive. Link to comment Share on other sites More sharing options...
ericd1 Posted January 20, 2011 Author Share Posted January 20, 2011 Josh, I didn't mean to imply the company is a value stock based on its numbers. It is pricey - P/B 3.8x P/S 8.0x and P/E 20x, but the PEG is < 1.0. It looked a lot better a couple of months ago below $40/shr. I like the company's technology, patents and future potential. If their cell phone compass device is adopted by a major cell phone company it could be huge. If their MRAM technology becomes mainstream in military or industrial high-security applications it would also be a huge development. They have also been working on medical device applications for their technology, again possibly a big development. All of these are large markets and if adopted would substantially increase sales. They operate with a 70% gross margin so the increased sales would create substantial operational leverage. In the meantime they are profitable and have no debt. I'm willing to wait and see what develops. Harry - what's your take? Link to comment Share on other sites More sharing options...
Guest HarryLong Posted January 21, 2011 Share Posted January 21, 2011 My take is that it's very well run. Link to comment Share on other sites More sharing options...
ericd1 Posted May 5, 2011 Author Share Posted May 5, 2011 If anyone is interested in NVE - Seeking Alpha has the recent 4Q quarter transcript available. Appears they are making headway with their bio-medical equipment customer. Interestingly NVE's bio-sensor is a 'disposable' part of the test equipment. The company also reports progress on their spintronic compass (note the reference to the 3-plane sensor development) as well as MRAM. The Q&A added more details about the new developments. http://seekingalpha.com/article/267846-nve-ceo-discusses-f4q2011-results-earnings-call-transcript I'm long NVEC Link to comment Share on other sites More sharing options...
Josh4580 Posted August 25, 2014 Share Posted August 25, 2014 http://finance.yahoo.com/news/nve-corporation-reports-record-revenue-200500781.html NVE Corporation Reports Record Revenue and Earnings Total revenue for the first quarter of fiscal 2015 increased 37% to $8.45 million from $6.18 million in the prior-year quarter. The increase was due to a 40% increase in product sales, partially offset by a 48% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2015 increased 57% to $4.04 million, or $0.83 per diluted share, compared to $2.57 million, or $0.53 per share, for the prior-year quarter. "We are pleased to report record total revenue, product sales, and earnings for the quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D Ericd, valuation looks pretty expensive here. Also insiders are unloading since 2012 http://finance.yahoo.com/q/it?s=NVEC+Insider+Transactions You still own NVEC? Link to comment Share on other sites More sharing options...
ericd1 Posted September 13, 2014 Author Share Posted September 13, 2014 No I don't - I agree it looks expensive, but they are back to increasing sales and earnings. Still watching the stock and listening to the calls. Waiting to see if they hint about a big new product... Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 28, 2020 Share Posted October 28, 2020 bumping this due to wabuffo's post... I want to look into this more. In the meantime: NVEC - small cap ($225m mkt cap). Consistent, after-tax net income margins of 45-55% year-after-year. Dividend yield of 8.5% currently. Nice, safe, boring, little Minnesota tech company. wabuffo Link to comment Share on other sites More sharing options...
wabuffo Posted October 28, 2020 Share Posted October 28, 2020 bumping this due to wabuffo's post... I'm glad you are looking at it. About the dividend yield. In 2015, because growth slowed and the Company had built up a large cash pile, they decided to start reducing the cash pile by "overpaying" a dividend relative to their net income. Not the way I would've done it - but this is a conservative Midwestern small cap. (I would've done a large tender for their common). Anyhoo - I think of the $4 dividend as a return of profit (~$2.75 per share so a 5.8% yield) and a return of excess capital ($1.25 per share every year). At the rate they are running down their cash, this should continue for a decade or more (if profit doesn't change much from here). Their business makes cash profits every single quarter and currently their cash/marketable securities on hand stands at over $14 per share. When they started the $4 annual dividend five years ago, their cash + marketable securities was over $20 per share. So yes, with almost a 9% yield, a dividend cut is coming --- eleven years from now! ($14/$1.25 = 11.2 years). Despite what I just said about repurchases, the mgmt team is a shrewd repurchaser of their shares. They bought back shares in 2015 and the March q of 2016 when the stock was cheap. They haven't bought back since but now are buying again (March 2020 q and this latest Q). That's a tell that the stock is cheap. wabuffo Link to comment Share on other sites More sharing options...
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