Today is a fun day in the stock market for stock traders as the DOW gapped up right out of the gate. Markets overseas around the world were up big overnight as the Chinese stock market went up over 6% in a day. The Chinese state media put an article on the front page of one of their major papers saying that higher markets are in the interest of the Chinese government. In the United States stock traders are also looking for stocks to play and shares of Netlist Inc. (OTCMKTS: NLST) are up over 15% this morning to grab the attention of the computer scans. Take a look at the chart as it has been going up almost every single day for the past four weeks.
What is neat is that the Netlist stock broke out of a stage one base early in June. It had been going sideways all year and then went to a new high. As the stock went up the action simply attracted more traders until now it is going up at an even faster rate almost like a rocket. A stage one base is a simple consolidation stock pattern on a long-term chart and it is a pattern that often triggers big gains like shares of NLST are generating.
Shares of NLST have a market cap of around $130 million so it is a good amount of money driving the stock up today. The company provides high-performance SSDs and modular memory subsystems to enterprise customers in diverse industries. Flagship products NVvault and EXPRESSvault enable customers to accelerate data in their servers and storage and reliably protect enterprise-level cache, metadata and log data in the event of a system failure or power outage. It also has been engaging in lawsuits against other companies in claims that they have been using their technology without permission.
The company announced last month that it won a judgement in the US Federal Circuit Court of Appeals against Google for its “912” patent. “For ten years Netlist has steadfastly opposed Google’s misguided campaign to invalidate the ‘912 patent,” said Netlist’s CEO, C.K. Hong. “We are very pleased that in the end the appellate court made it clear that the claims of this seminal patent are indeed valid and in so doing, further vindicate our decade-long defense of the company’s strategic intellectual property. We will now move to lift the stay in the patent infringement lawsuit against Google in the U.S. District Court for the Northern District of CA., in order to recover current and past damages related to the ‘912 patent.”
Traders on Twitter are excited about the stock action as you can see from these tweets:
$nlst Potential here is huge. Just depends how the company decides to play this out— Hidden Investments (@LearningToBid) July 6, 2020
DON’t “BUY Apple “ instead do your homework and then BUY Netlist , NLST $NLST. ASAP! They are about to receive some punitive damage money from #Google who’s been using their products (in denial) for the last 10 years.— JakefromSteakFarm (@Jakesteakfarm) June 30, 2020
I do not have a position in NLST myself. What I like to do is look for stocks that are poised to breakthrough a stage one base. My top stock pick for the summer is in that position. For my post on it just click here.