Education and learning is not something that stops when you graduate from school. It is forever ongoing, especially in the financial markets. Nothing ever should be accepted without questioning who presented it and the reasons why.

The great thing about Technical Analysis is it can see past the lies that we tell ourselves, which are some of the worst and the most difficult to combat, and that are told by others. Having the objectivity to use Technical Analysis to make us money sometimes is much easier said than done, but as stated above, "learning is not something that stops when you graduate from school." We are always learning, and Trending123.com is your short cut to making profits while keeping the learning curve to a minimum.

So how can Technical Analysis help you? Let me show you the ways by walking you down the path of "truth and lies."

If you think about it, charts are nothing more than emotions plotted on a grid in the form of lines or candlesticks that show what investors feel about a particular stock or security.

This is an example of a grid with candlesticks.

Every investor must fight through the wall of noise that has kept them from becoming wealthy by doing this every week with each of their stocks.

What I love about Technical Analysis is that these "candlesticks on a grid" form what we call chart patterns. This is an example of one below.

A Flag (Bullish) follows a steep, or nearly vertical rise in price, and consists of two parallel trendlines that form a rectangular flag shape. The Flag can be horizontal (as though the wind is blowing it); however, it often has a slight downtrend.

A subscriber posts on the message board:

I've been a member since December, and have been "listening" the whole time. However, in the past month I've began to realize the education that I've received has been enormous. Funny thing, my listening ability has changed too. I don't consider myself thickheaded, but after 10 months, my ability to hear what John says has changed. What's the point?

Bodie 11/01/07

"The education takes time," yet you can profit from the learning experience and this is how you do it.

Aside from the obvious (signing up to Trending123.com), you will need a couple things.

1. The Desire to want to earn money.
2. The Ability to keep it, once you earn it.
3. The Patience to do what works "over and over."

Message Board Post

Message Board Post

Here's my "eight month" investment lesson...I've done better in 1 week with John Lansing than I have in the previous 8 months on my own!

Takala 11/01/07

Message Board Post

The "proof is in the pudding," as they say, and I'm "hooked" now—darn it. I don't think I could subscribe to another service where there's nobody on the other end except an e-mail. I'm sure there are good ones out there, but I want more than that. I want a professional's insight—how, why, and when something is done. That's the icing on the cake.

Pam 11/01/07

So if you want to "earn while you learn," then you've found a home!

John Lansing

When analyzing charts, we look for patterns—that is, objects or shapes that call to mind an image of a similar event in the past. Because patterns repeat, we can use them to determine the probability of a certain outcome.

Technical Analysis helps us tell whether it's imagination, illusion, fact or fiction—that is, to distinguish between what is real and what we think is real. This, in my not so humble opinion, is often found in many other types of analysis. Hence the reason I always say, "The charts never lie." The only thing that is real is where price is at the end of the day. Price, as stated in my last blog entry, is nothing more than investor emotions plotted on a grid in the form of lines or candlesticks that show what they feel about that particular stock or security.

It has often been stated that an individual difference in intelligence can only be detected through measures of complex processes such as memory, imagination, attention and comprehension. (I don't know who said it, but I do remember it being said, which is somewhat ironic, because after all I am talking about memory. But I digress.)

Memory, imagination, attention, and comprehension all play a role in the success we have as traders and technicians. So in this blog entry, I want to explore the importance of being able to build on the strengths of what we remember, why imagination plays a vital role in pattern recognition, attention to object identification (which for years has been used to help memory), and why comprehension is roughly the same meaning as understanding.

In the study of Technical Analysis, let's break down M.I.A.C. (memory, imagination, attention, and comprehension).

1. Memory – Statistics; the set of past events affecting a given event in a stochastic process.
   
2. Imagination – The formation of a mental image of something that is neither perceived as real nor present to the senses.
   
3. Attention – Observant consideration.
   
4. Comprehension – Logic; the sum of meanings and corresponding implications.
   

Each pattern that is identified typically forms a geometrical shape, and this is where memory and imagination come into play. First, you need to remember that different patterns have different outcomes, and different outcomes have degrees of failure and success. Second, you need to be able to see what others may not in an ever-growing world of technology that is in constant one-upmanship or who can see what may be there faster than the guy sitting next to you.

The object of the game as always is to identify the highest-probability chart patterns and milk them for all they're worth. (In the terms of beating your opponent at his own game, you have no idea who your opponent is and lastly will never know why.)

Skillful Chart Pattern Recognition also requires the ability to remain constantly vigilant for the possibility that there is no "logic" in what we are looking at and trying to understand. We often call "Expanding Triangle" patterns "Nut Hut Patterns" because they defy logic and refute the very things we instinctively know as human beings. We are told, "higher highs are bullish." We are told, "lower lows are bearish." The "Nut Hut Pattern" has both!

Here's an example of what the Expanding Triangle looks like:

Message Board Posts

John, this was an awesome update. You have this incredible ability to see the future by detecting chart patterns.

Ron K. 11/05/07

It's always good to hear how well Trending123 members are doing. But our products are better because of you. Yes, you! Your feedback and input help shape our products. To take an inside look at what others love about Trending123 (as you can see from the posts above), sign up here and give us a try.

John Lansing

Hey all you bloggers!!!

I want to tell you about something new we have at Trending123.com.

Take a look around! Try out all of the tools in our Trending123 Toolbox created specifically for you, and when you're ready to reap the sudden profits you deserve, join us as a member of the Trending123 community!

Welcome to the Trending123 Toolbox, where you'll find all the tools you need to start building sudden profits today! This free resource is chock full of the most valuable information a trader, newbie or veteran, needs to get started down the road to successful trading.

Special Free Report

"Turning Volatility into Big Trading Profits"

This brand new special report gives you the keys to success in trading with technical analysis. After reading this incredibly valuable (and completely free) report, you'll be well equipped to start trading smart using Trending123 and working toward reaching all your investment goals today! Sudden profits are within reach, even in this volatile market!

Video Vault

In this section of the toolbox, you'll get to meet John Lansing, your fearless leader at Trending123, as he presents some of the basics of technical analysis, how he makes picks his winning stocks, and answers some burning questions submitted via the website.

Chart Patterns

Brand new to technical analysis? Been around but need a quick refresher course? Feeling unsure about what a megaphone top indicates? If so, then Chart Patterns 101 is just what you need! In this section of the toolbox, you'll find the basic educational materials you'll need to get started with Trending123. If "Intro to Technical Analysis" was taught at your local college, these would be the course materials, including a few well known chart patterns and access to the Trending123 glossary.

Trade Talk Weekly

Trade Talk Weekly is a free weekly bulletin sent directly to your inbox, delivering John Lansing's hottest stock picks each week, along with background, pattern trends, and explanations of his recommendations. Also, Trade Talk Weekly includes John's best techniques and tips for successful trading, as well as educational articles on trading using technical analysis.

The secret: follow the charts

What separates the 80% Reactors from the 20% Responders is technical trading--the techniques I've used since the 1990s. Technical traders like me know that every shift in the market follows set, predictable patterns.

Patterns I chart in a proprietary system, so you can see them, layer after layer, in one glance.

In many cases, a picture like this is worth more than a thousand words. In a volatile market, it can be worth a couple of thousand bucks.

Here's a snapshot chart for our Cell Genesys, Inc. (CEGE) play, summarizing my "Bottom of the Wedge" pattern call. Trending 123 subscribers made an astounding 96.72% this spring... in only 8 DAYS.

He's been doing it for subscribers for years, building them profits steadily over time. And now he's giving you the tools to get started building your own wealth today!

Message Board Posts

JL - You are the most brillant trader of all time. You made me lots of money in October.

Thank You! Thank You! Thank You!

Smo 11/07/07

Message Board Posts

Hey John, I do appreciate you, I haven't been here long but I've already made money and I plan on following your advice so I can make more

Peggy 11/07/07

John Lansing

As of the end of October "The New York Stock Exchange" said it will no longer impose curbs on computer-program trading that were put in place after the crash of 1987, claiming they're no longer as effective in damping swings in prices.

The exchange will stop prohibiting brokerages from entering some program trades when the NYSE Composite Index rises or falls more than 2 percent, according to a notice sent to member firms today. The so-called collars had been in effect since 1988 and were triggered 17 times this year, according to a filing with the Securities and Exchange Commission.

The curbs applied only to some index arbitrage trades on stocks in the Standard & Poor's 500 Index executed at the Big Board. Brokerages weren't barred from turning to rival exchanges to complete those trades.

Increased electronic trading has also made arbitrage strategies a smaller piece of daily equity trading, the NYSE said in the filing. Index arbitrage strategies accounted for about 4.6 percent of the total shares bought or sold at the NYSE, according to data on its Web site.

Well Let's review

I love looking at headlines that always seem to support what we already knew from a technical analysis perspective.

What hit the cover of "Time Magazine"? You Guessed it!

Now check out the stock!

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This site has been so amazing through all this volatility! Thanks John for getting us out of so much stuff! I'm doing so much better this time around (correction wise)...this site has been invaluable. Way less mistakes this time.

Pam 11/09/07

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Congrats on your learning curve, Pam. I had to learn each of my option lessons several times (AFTER being aware of them, from John, Cap and from the site) and I fear I have more lessons in the future, but, for fast learners (and good listeners), this site allows the avoidance of expensive mistakes (like mine) and the opportunity of learning from the best, not just the technical aspects, but, more importantly, the mental ones.

Quix 11/09/07

Direction, Speed, and Distance

Let me show you how I put successful trades together with the methodology developed through years of experience here at Trending123.com.

Patterns tell me what is likely to happen with any particular stock:

1. Which direction is it going to move?

2. How far is it going to go?

3. How long will it take to get to the profit target?

It all comes back to those three little words: Direction, Speed and Distance.

To get more specific, I take these steps when I'm building a trade:

1. Is the market trend bullish or bearish?

2. I scan sector performance to evaluate what's hot & what's not. At this instant, which sectors is money flowing into? Which sectors is money flowing out of?

3. I pick a sector that looks good and run the stock scanner for that sector.

If the trend is bearish, I look for good bearish trend patterns. Then I add my own analysis for stocks to short.

If the trend is bullish, I look for good bullish patterns. I add my own analysis to find long-term plays to last from a few weeks to a few months.

And it all depends on three simple little words: direction, speed, and distance.

Direction, Speed and Distance

That's right, when stocks or entire sectors are in a downtrend, you can still make money -- almost indecent amounts of money. Let me tell you, ringing up profits while other investors are just wringing their hands is wicked fun.

Trending123 subscribers make money no matter what the market is doing. Bullish, Bearish. Turbulent. Stagnant. Downright crazy.

Get ALL the hard data--coordinated, aligned, and weighted--in clear charts. And get one of the best brains in the business (that's me!) to give you the straight, unemotional scoop.

And when a trade shoots for the moon, you've got to rein in that greedy little voice that says "More! More!' On the way up, you have to take your profits... without hanging on too long hoping for the last few bucks.

That's where Trending123 comes in. Technical analysis takes 99% of the emotion out of investing.

We go where the charts tell us, and we get out when the charts say it is time to go.

Because the charts don't lie. It all boils down to "Price At The End Of The Day"!

This is a GREAT Trading Wisdom by our very own Dr. Janice (Dr. Dorn is a full time futures trader and trading mentor. Known as the Trading Doctor, Dr. Dorn holds an M.D. degree, Board Certified in Psychiatry and a Ph.D. in Brain Anatomy. She is also a graduate of Coach University, and an authority on Wellness, Stress and Life Extension. She is an internationally-renown author and speaker who has published over 300 articles on Behavioral Neurofinance and Trading Neuropsychology and has coached over 600 traders World-Wide)

There are no secrets to success. It is the result of preparation, hard work, and learning from failure...Colin L. Powell

No matter how many bells, whistles, indicators, seminars and books you surround yourself with, you have to pay your dues. You must learn that that piece of cake needs to be converted into humble pie, and that the most successful traders got that way by first getting a Ph.D. in losses at the School of Hard Knocks!

Trading is simple, but it is not easy. Successful trading and investing are skills that combine both art and science and take time, patience, perseverance and courage. In order to achieve and master these skills, one must progress on a path that is mental, emotional, physical and spiritual. For many, this is the most difficult journey ever taken. Start where you are, and understand that it is about the process, that time takes time, and that the rewards are worth it if you just keep going with passion. Without passion, why bother?

Every trader must climb the four rungs of the Ladder of Learning, and must do this one step at a time. You cannot skip a step, but if you let your guard down and do not continue to study and practice, you can and will fall down a step or two.

What do I mean by the Ladder of Learning and the four steps necessary to achieve trading mastery? In this case (and putting all learning theories and the neuroanatomical bases for them aside for now), I am referring specifically to the four stages of trading competence: unconscious incompetence, conscious incompetence, conscious competence and unconscious competence.

Somewhere in your make-up, there lies sleeping, the seed of achievement which, if aroused and put into action, would carry you to heights such as you may never have hoped to attain...Napoleon Hill

(1) Unconscious Incompetence: You don't know that you don't know, and you don't know what you don't know--aka "Ignorance is bliss."

At this first stage of your trading, you are not aware of the existence of, or need for, specific trading skills. You don't know what you don't know, including that you have any deficiencies (since you don't know that there are any specific trading skills). Denial may come into play here as well, as you may think that such skills are unnecessary or not useful, and all you have to do is to subscribe to a service or hotline, or jump on the next "hot" pick, and money will come rolling into your account. In order to move to the second stage, you most overcome your denial and become consciously aware of your incompetence. Without taking this next step, you will not progress, no new skill will be acquired, and there will be no learning.

(2) Conscious Incompetence: You know that you don't know, but you are not entirely sure what you don't know.

At this stage, you become aware that trading is a skill that exists, is practiced by many, and is relevant to your success. You also become aware of your deficiencies in this area by attempting to trade or practicing how to trade. This is the stage in which you begin to figure out how much you don't know. Successful traders will, at some point during this stage of the learning process, make a commitment to learn. They will make a commitment to study, to be teachable and to practice, practice and practice until they know what they didn't know before. Once you have done the same, you will be ready to progress to the third stage.

(3) Conscious Competence: You know what you know, and you can trade, but you have to think about it.

During this stage, the skill of trading can be performed reliably, consistently and at will. However, you have to concentrate a lot, and think a lot, in order to do it. It is not second nature, nor is it automatic. At this stage, you are totally open to more learning, but you are not able to teach anyone else how to do it. The only way to proceed from this stage to the final stage is to practice more and more until...eureka...one day you have reached the fourth stage.

(4) Unconscious Competence: You know how to do it, and don't have to think about it. You just do it.

At this stage, the act and process of trading consolidates within the memory and pattern recognition areas of your brain--it becomes second nature. If you are really good at it, you can trade and do other things at the same time. (I do not recommend this, however.) Certain people at this stage are capable of teaching others, but this is not universal.

In fact, it may be more difficult to teach at this stage since the skill has become largely instinctual. It is at this stage when, if someone asks you how you knew to do that, you have to pause, think and say, "I don't really know. I just did it." This is trading mastery.

Yet there is another, final and seldom discussed stage that goes beyond this. That stage is called conscious-unconscious competence. Those who have reached this stage are the best teachers, and they are rare and difficult to find. Find one of these people to guide and support you if you really want to learn how to trade.

Champions execute the fundamentals with unconscious competence. That means they've practiced the moves so many times in the past that they can do them almost perfectly without thinking about it. When you can perform brilliantly without thinking, you can perform at a very high level...June Jones (head football coach, University of Hawaii Warriors)

Message Board Post

Aloha John,
I have been a member now for exactly 3 months today. Just wants to say a BIG MAHALO ! I appreciate your hard work very much. I am learning tons and making money and having fun. Also, Mahalo nui loa to Dr. Janice. and Mahalo to all the Ohana Nui ( big family,team,community) for all the input in the trading room and message board. Awesome analysis and advise !

Aloha Nui loa,
Bob 11/11/07

Message Board Post

Again John thanks for all the profit sell alerts & regarding the coming wave 4 correction. I sold most not all and have lots of cash to go shopping at bargain prices. Your warning saved me- well worth the subscription price. !

T H A N K Y O U !

Zak 11/11/07

Trending123.com is a Technical Analysis website but we still, however, consider other types of information. Many investors research the intrinsic value of the company by studying the balance sheet and gauging consumer interest in the company's products. That kind of fundamental research can help you find a good company in which to invest.

Technical analysis will help you gain insight into the price behavior for that company's stock. That distinction is important because the stock price is not only determined by the intrinsic value of the company, it is highly subject to the hopes and fears and guesses of the buyers and sellers.

Fundamental Analysis

Technical Analysis

We have introduced a new default sort order to all of our pattern scan search results. This sort order effectively floats "good companies" to the top of the bullish searches, and "worse companies" to the top of the bearish lists - all based on a proprietary evaluation of the company's "fundamentals". We have simply named this the "Sort Order" and have not disclosed the method of evaluation. Rather it is simply used as a proprietary sort order and users can change to another sort order if they desire (such as sorting highest volume stocks first). Note that in this sort order, we still present the most recent events first. However when events fall on the same day, we use this new evaluation to float better companies to the top.

The idea behind this enhancement is to make sure we are not pulling up obviously "dog" stocks to the top of our bullish lists. We see it as generally a "nice thing to do" for our users.

If you haven't havre a chance to view what our pattern scan does you might visit this link and watch some of our great educational videos!

Message Board Post

JL...Just completed watching all the tutorials on the site. This place is more awesome than I imagined. Pattern scans are tremendous. Thought my time was too valuable to watch all the tutorials. Was I ever wrong. Saturday morning time more than well spent.

AWESOME, AWESOME, AWESOME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Cobra 11/18/07

Message Board Post

Thanks for the update on the Stock Scanner!

I've been using the Scanner, but not to the extent I could be.
Thanks for the refresher course which will help me put it to use further.

Rose

Message Board Post

I agree! I had no idea how powerful the scanner could be. This will be an incredible tool for me, not only to use for trading but for education, too!

CMG

Message Board Post

I originally discovered T123 via a web search for "Stock Pattern Software".
JL and all the other trading tools on this site are all bonuses! Thanks John!!

Andy

Message Board Post

I too have used the scanner for education & some trade set-ups.
The refresher update was great.

Gerald

Trending123.com Traders Research

Hot Stocks!!

Outperforming The $SOX On The Weekly With A Massive Rally This Week

You've got to go where the money is.

All my buddies in the Trending123 war-room know how I feel about buy-and-hold "investing." It's strictly for suckers.

Virtually every stock has its moment in the sun, and that's when you want to own it. And remember, buying is only half of the equation - you've got to know when to sell, as well.

1. I'm sure many thousands of people had "paper profits" in Citigroup.
2. Paper profits in Countrywide Financial.
3. Paper profits in X, Y or Z before they plunged.

But what the heck good are paper profits??? You can't spend them!

That's why I, my friend, am not a stock "investor."

Investors tend to buy "good stocks" and hold them for the long-term. Problem is there are no "good stocks" in my book. Only good trades.

That's why my Trending123 subscribers and I don't own stocks, we merely "rent" them.

And while other "gurus" preach that you should always be in the market, I say that's BULL. For example, we sold everything at Trending123 before last summer's huge swoon. Sold everything and banked our profits, because as I like to say.

Profits ain't profits until you take them.

And boy-oh-boy, do my subscribers take profits

How do we do it? By getting in and out of trades quickly, for smaller profits that compound into huge annual gains. That's how you build a winning track record. And that's how we average an 85.09% annualized gain on each trade - even with the losers thrown in!

20.00% from Mastercard in 6 weeks
26.00% from Microsoft in 1 month
33.85% from Apple in 6 weeks
27.45% from Biogen in 1 month
26.24% from Microvision in 1 month
29.13% from Targeted Genetics in 3 weeks
27.05% from Alanco Tech in 3 weeks

These are typical of the profits you can expect when you try Trending123.

Message Board Post

Magnetic computer memory (MRAM) combines the speed of SRAM with the non-volatility of Flash. It also offers a low-power memory solution, which eventually may match DRAM's capacity and density. All this makes MRAM look like the universal memory solution of the future.

A just-released report from NanoMarkets, LC -- a industry analyst firm based here -- claims that the MRAM market will grow to $2.1 billion by 2008, and $16.1 billion by 2012. Additional information about the report can be found at www.nanomarkets.net.

Near-term opportunities that NanoMarkets sees emerging for MRAM include:

Cell phones, PDAs and notebooks -- MRAM is an attractive alternative to deploying both Flash and DRAM. It can save money and space. With software applications residing in memory, mobile devices will rapidly power up to exactly where they were when they were turned off. This will prove useful for someone who wants to use his notebook for a few minutes between flights. With its strong ties to Motorola, and early entry into the MRAM business, NanoMarkets believes Freescale will help give MRAM credibility in the cell phone sector.

Computing and networking -- MRAM will be used to avoid boot-up delays and to provide faster access to hard drives and non-volatile backup capabilities. At present, BIOS tends to use high cost, low density EEPROM or battery backed-up SRAM and volatile memory is used to alleviate I/O bottlenecks. In such applications, MRAM could prove in economically. Cypress -- another early MRAM supplier -- is already pushing its MRAM product as an SRAM replacement, while IBM views MRAM as a replacement for embedded DRAM. (IBM is working jointly with Infineon in this space.)

Factory automation -- microcontrollers and robots typically employ both RAM and PROMs/Flash. Lower costs will be achieved by replacing these two chips with one MRAM device.

RFID -- RFID tags need low-cost, non-volatile memory and at least one company (Micromem Technologies) is targeting this sector with MRAM products. A price point that makes MRAM economically viable for RFID applications will almost certainly push MRAM into other cost-sensitive areas.

Military -- MRAM is "rad hard" which makes it suitable for use in missiles and spacecraft and perhaps on battlefields where equipment could potentially be exposed to tactical nuclear weapons. Honeywell is already selling products for this sector.

In addition to analyzing the current and future opportunities for MRAM, NanoMarkets' new report, "Magnetic Memory: An Analysis and Forecast of the Market for MRAM" analyzes the strategies of 20 firms that are actively engaged in pursuing MRAM-related revenues. These include some of the giants of the electronics industry such as Hewlett-Packard, NEC, Philips and Toshiba, as well as smaller players such as NVE, Spintron and Trikon.

NVE is a leader in the practical commercialization of spintronics, a nanotechnology that many experts believe represents the next generation of microelectronics. NVE licenses its MRAM intellectual property and sells spintronic products, including sensors and couplers, to revolutionize data sensing and transmission.

Arnoldi 11/29/07

Message Board Post

There is a large commercial and defense market for MRAM technology. This includes small electronic devices such as Cell phones, PDAs, music/video players, computers, network devices, RFID, and factory automation equipment where MRAM provides an attractive alternative to current non-volatile memory technologies. There are many defense applications from spacecraft to land based weapon systems that are looking at MRAM, since it is not affected by radiation. For example, a nuclear pulse that would knock out most current electronic devices does not affect MRAM. The overall MRAM market is estimated to grow 8-fold by 2012.

NVE has a market cap of $110M with 4.64M shares outstanding, and a float of 4.6M shares. It has increased EPS 160% over last year, and Sales Growth is 35% higher than last year. The company had a net profit of 32% in 2007 compared to 6.5% for the Electronics industry, along with a ROE of 24.4% to 18.1% for the Electronics industry.

The company has beat Earnings Estimates the past 3 quarters, after a couple of negative earnings surprises in 2006. They have revised Earnings downward for current quarter ending in Dec07. Overall Earnings are projected to grow by 30% in 2008 and 20% for 2009.

NVE also grew sales to $16M last year, after 3 previous years of stagnant sales of $12M per year. This represented the largest year to year sales growth in company history. Sales are projected to grow by an average of 20% in 2008 and 2009. The company has free cash flow of $5M with no long-term debt and is in the best financial shape since the company’s inception in 1989. In this tight credit market as a result of the Subprime blow-up, NVE is well positioned from both a cutting edge product with a large future market and financial standpoint to thrive in this environment.

pmfischer 11/29/07

Message Board Post

On 9-4-07 NVE Corporation announced they were "notified by the U.S. Patent and Trademark Office of the expected grand of a patent relating to magnetothermal Magnetoresistive Random Access Memory (MRAM). MRAM is an integrated-circuit memory which is fabricated with nanotechnology and which uses elecron spin to store data. MRAM may have the potential to combine many of the best attributes of different types of semiconductor memories. Magnetothermal MRAM is a next-generation MRAM technology that uses a combination of ultra-fast magnetic fields and heat pulses, both from electrical current, to reduce the energy required to write data and allow reduction of the memory cell size while maintaining thermal stability. It may have the potential to increase MRAM density, increase speed, and reduce powere, all of which could enable broader MRAM use in the future. The grant brings NVE's patent total to 45. The company has more than 100 patents worldwide issued, pending or licensed from others. NVE is a leader in the practical commercialization of spintronics, a nanotechnology that many experts believer represents the next generation of microelectronics. NVE licenses its MRAM intellectual property and sells spintronic products, including sensors and couplers, to revolutionize data sensing and transmission. " (QuoteMedia News)

Second Quarter Results were reported Oct., 17, 2007, "six months ended Sep. 30, 2007. Product sales for the quarter increased 14% over the prior-year quarter to $4.31 million from $3.78 million. Total revenue, consiting of product stales and conract research and development revenue, increased 14% to $5.00 million for the second quarter fiscal 2008 from $4.4 million in the prior-year quarter. Net income for the second quarter of fiscal 2008 increased 28% to $1.64 million, or $0.34 per diluted share, compared to $1.28 million, or $.27 per share , for the prior-year quarter. Bottom line: Record revenues drove strong earnings. We also renewed agreements with two important customers, St. Jude Medical and Avago Technologies." (QuoteMedia News)

Today, 11/29/07 Open $25.50, High $28.35, Low $25.09, Close $27.92, Change $3.32 Up, Change 13.50%, Volume 130.86K

52 Week High/Low $41.95/$20.75, EPS(TTM) 1.23, Shares 4.64M

PE Ratio 20.00, Market Cap $129.M. Float 4.62M, Short Interest 1.14M (as of 11/9/07)

Short Int Ratio 17.50, % of Float 24.60%

Non-Corp Insider Hold'gs 0.30% (as of 9/1/07), Instituion Hold'gs 46.80% (as of 10/01/07)

NVEC Industry: Electronic Instruments & Controls. Sector: Technology. NVEC outperforms its Industry, outperforms its Sector, and outperforms the S&P 500. The average 20 day volume is 81,477, the Current Zacks Score is 3, the next EPS Report Date (estimate) 01-16-08. NVEC is not Optionable. Oveall rating of Good, Average, or Poor, NVEC is rated GOOD! (Incometrader.com)

What all the above plus JL's technical analysis tells me is that NVEC appears to be "as tenacious as a bulldog with a pork chop", "it's slicker than gorilla snot," "is going to run as fast as a turpentined cat" and "will climb like a scalded ape."

GOTP 11/29/07

Message Board Post

A fundamental analysis of NVEC
Disclosure: I am a holder of NVEC shares.
By: Batting 500

First lets take a look at the Key Statistics, available at yahoo.com
http://finance.yahoo.com/q/ks?s=NVEC
I type like I have fingers made of sausages, so check out all the numbers for yourself.

The Market cap of this company is 129.41M this is a small company. This should mean lots of room to grow.

The Trailing P/E of 22.83 is reasonable; compare it to the average P/E of the Semiconductor - Specialized industry of 21.80. The growth of the firm shows the PEG Ratio is .79, this makes the P/E even more reasonable when you have that much growth.

The Price/Sales ratio of 6.29 is higher then its competitors. I surmise this is due to the licensing agreements that this company has.

The Profit Margin is 32.18%, nice.
The Operating Margin is 43.27%, nice.

The Return on Assets is 19.85%, nice.
The Return on Equity is 24.45%, nice.

The Quarterly Revenue Growth 13.80%, nice.
The Quarterly Earnings Growth 28.20%, nice.
The Quarterly Earnings grew faster than the Quarterly Revenue; with many companies the Earnings will grow slower when compared to the Revenue.

This Company has 0 Debt (it has some current liabilities but no long term debt). This leaves it options if it has difficulties in the future.

The last reported Short Ratio (26 Oct 07) was 14.2 days. The number of shares short did diminish from the prior month from 1.38M to 1.32M. But look at that Short Ratio, 14.2 days, Short Squeeze anyone?

Cash Flow Statement Analysis

My favorite financial statement let us look at the annual first (numbers in thousands).
Most recent NI for FY '07 was 4,781, compared to 1,798 in '06 and 1,758 '05. So NI has been increasing year over year. One thing to keep an eye on is the amount of money the company has been raising by selling stock. The Co. raised 254 in '06 and 389 in '05. but only raised 26 in '07. So the bleeding of shares slowed the last FY. What else sticks out on the annual? Well the huge increase in Investments, the company spent (8,167) in the most recent FY. (the numbers in parentheses shows where the company spent money).

Now lets look at the Quarterly Cash Flow Statement.

What we should look for is any huge deviations in the most recent quarters. The NI has grown in each of the last 2 quarters. Investments have slowed down the last 2 quarters. And finally Cash has grown just a little bit each of the last 2 quarters. How about the bleeding of shares? Well, the Co sold 42 (numbers in thousands) in the quarter ended in June and 2 the most recent quarter. Not bad at all, we want to make sure shareholders are buying their shares on the market like the rest of us. (and from us at higher values)

Income Statement Analysis

The one interesting thing I see here is that the Cost of Revenue has gone done each of the last 3 years at the same time as the Total Revenue has gone up. BUT dig into the quarterlies and you will see that the most recent quarter Cost of Revenue has cone up a tad. From 1,443 (numbers in thousands) for the quarter ended June to 1,851 for the most recent quarter ended Sept. If we annualize that 1,851 (multiply it x4) it would show a cost of revenue of 7,404 which would be an increase from the most recent Yearly Cost of Revenue of 5,788. Keep an eye on the Cost of Revenues for the Quarters going forward.

Balance Sheet Analysis

What sticks out here? The increase in investments; Long Term Investments specifically. So, what exactly is that approximately 8,000 (numbers in thousands) increase in investments?

Other Analysis

Now lets look at the auditors report, same link page 25, is there anything that the Auditors point out? Yes, the company adopted “Share-based Payment”, so they have moved the Stock Options from the Balance Sheet to the Income Statement.

Want to get scared? Goto page 9 and read the entries under ITEM 1A. RISK FACTORS. This section goes to page 13.

Finally

Overall, I like this one. I like small quick growing companies. Don't want to see it stumble for even one quarter though.

Be financial prudent and do your own analysis.

Batting500 11/29/07

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Intel Corporation operates as a semiconductor chip maker that supplies technology solutions for the computing and communications industries. The company's products include microprocessors; chipsets; motherboards; flash memory; communications infrastructure components, including network and embedded processors; wired and wireless connectivity products; products for networked storage; application processors; and cellular baseband chipsets. It sells its products to original equipment manufacturers and original design manufacturers who manufacture computer systems, cellular handsets and handheld computing devices, and telecommunications and networking communications equipment. Intel's customers also include personal computer and network communications products users, including individuals, large and small businesses, and service providers, as well as manufacturers of a range of industrial and communications equipment. It markets its products primarily in Americas, Europe, Asia Pacific, and Japan. The company has a strategic alliance with Alcatel to develop mobile WiMAX solutions. Intel Corporation was founded in 1968 and is based in Santa Clara, California.

Cymer, Inc. and its subsidiaries engage in the development, manufacture, and marketing of excimer light sources for manufacturers of photolithography tools in the semiconductor equipment industry. The company's products include photolithography light source systems, replacement parts, and service. Its light sources are used to pattern the integrated circuits. The company provides discharge chamber, certain optical components, and other spare and replacement parts for its photolithography light sources. It also offers billable service or service contracts to the semiconductor lithography tool manufacturers, as well as maintenance and servicing of its light sources, including replacement of consumable parts and nonconsumable parts. In addition, the company provides CymerOnLine, an online diagnostic and performance software product, which delivers laser diagnostics and performance information to authorized users. Cymer operates in the United States, Japan, Asia, and Europe. The company was co-founded by Robert P. Akins and Richard L. Sandstrom in 1986. Cymer is headquartered in San Diego, California.

Varian Semiconductor Equipment Associates, Inc. engages in the design, manufacture, marketing, and servicing of semiconductor processing equipment used in the fabrication of integrated circuits. The company provides ion implantation systems to build the transistors that are the basis of integrated circuits. It offers a range of ion implantation systems for medium and high current, and high energy implant sectors. The company's products include single wafer VIISta 810XE series, VIISta 810HP, VIISta 810EHP, EHP-220, EHPi-220, EHP-500, and EHPi-500 ion implanters for medium current sector; high current VIISta HC series single wafer ion implanters that feature dual magnet ribbon beam architecture, implant angle accuracy, beam steering correction, and high-tilt angle capability for device fabrication. It also provides VIISta 3000 series, single wafer high energy implanters that cover retrograde well, triple well, buried layers, and pocket applications. The company serves semiconductor manufacturers in Europe and Asia Pacific, as well as in the United States. Varian Semiconductor Equipment Associates was founded in 1999 and is headquartered in Gloucester, Massachusetts.

Lam Research Corporation engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products include etch systems, including dielectric etch products, conductor etch products, and resist strip products, as well as synergy cleaning products. The company markets its products and services primarily to companies involved in the production of semiconductors in the United States, Europe, Asia Pacific, Korea, and Japan. Lam Research Corporation was founded in 1980 and is headquartered in Fremont, California.

Video On Performance

16 Years Of Chip Stock History, Let's review what happened every 4 years for the past 16 years. This year we might as well call it the "PRE-Santa Claus Rally".