February 18, 2011
NVIDIA Corp. (NVDA)
Written By Patrick McKeough
From Wall Street Stock Forecaster: “NVIDIA Corp. (NVDA) is a leading designer of 3D-capable video chips for computers and other devices. These chips make video games run more smoothly, and appear more lifelike. In its third quarter, which ended October 31, 2010, Nvidia earned $84.9 million. That’s up 9.6% from $77.4 million a year earlier. Earnings per share rose 15.4%, to $0.15 from $0.13, on fewer shares outstanding. Nvidia spent 24.2% of its sales on research in the latest quarter, so it’s more profitable than it seems. … The stock has doubled in the past three months. …
“That’s largely because the company has teamed up with U.K.-based chip designer ARM Holdings (ARMH) to make processing chips for computers and other devices based on ARM’s technology. This agreement will help Nvidia compete with larger chipmakers that are developing chips that no longer need separate graphics chips. Even with this gain, the stock still trades at a reasonable 24.0 times the $1.00 a share that Nvidia will likely earn in the fiscal year ending January 31, 2012. Nvidia is a buy.”
Patrick McKeough, Wall Street Stock Forecaster, 1/28/11
I have a web site where I research stocks under five dollars. I have many years of experience with these type of stocks. I am a astute value investor. I would like to comment about nvidia. I don’t think this tech stock is a great value here. I have a tech stock suggestion I think the company sanmina sci corp symbol {SANM} is a great value here the company provides integrated electronics manufacturing services worldwide. the company has a market cap of only 1.3 billion but does 7 billion dollars in annual sales the company also has 600 million dollars of cash on its balance sheet. the company went though a massive overhaul over the last 5 years. the companies earnings are exploding but this has not be reflected in the stock price .I think the stock could get to 100 dollars a share over the next five years the stock trades at 15 dollars a share. I also believe the company could be a takeover target.