What is so compelling about NVE Corp. (Ticker: NVEC)

In the world of trading it’s important to make the best of an opportunity when it happens. The first time I heard about NVE Corporation was in late July of this year. I scanned the stock market using TeleChart2007, an awesome tool for stock charting and analysis by the Worden Brothers. My scan is designed to find stocks that had moved up big on big volume and that is exactly what NVE stock had just done. Noticing that the stock had just advanced 25% in one day prompted me to do some more research. The company had just released earnings and their earnings conference call was available on the internet. After listening to that live conference call I decided we needed to own that stock. Looking at my trading log I see that I made five purchases at between $19.50 and $22.37 for accounts I manage. Now that this stock is trading in the 40’s am I still impressed with this stock? The resounding answer is “YES!” Here’s why. This companies name is coming up in so many patents and applications for patents, that if any of those killer ideas comes to fruition, the value of this company is going to explode. Here are a few of those ideas:

• GMR Sensors – used in hearing aids made by Starkey. NVE Corp. nanotechnology has vastly improved the technology and Starkey is said to be a year or two ahead of the competition. Sales are ramping.
• GMR Sensors in medical devices, pace makers, etc. Sales are ramping.
• Sensors in tires – Cooper Tire has named NVE in a patent application that would sense tire pressure, rotation and would send data RFID. This seems to have huge possibilities to improve gas mileage and road safety.
• Zero-Remanence Anti-Tamper Cryptokey Storage Device – NVE was awarded a Small Business Innovation Research project to “evaluate the effectiveness of the zeroization mechanisms, power requirements for reading and writing the device, and manufacturing feasibility”.
• NVE is working with hard drive manufacturer to bring AT MRAM (Anti-Temper)
• Do some due diligence, you’ll find many others.