6 Suppliers To Next Big Thing Sport 37% February Upsides

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 |  Includes: CY, ISSI, LEDS, MU, NLST, RMBS
by: Fredrik Arnold

(Editors' Note: This article covers micro-cap stocks. Please be aware of the risks associated with these stocks.)

Executive summary:

  • 6 semiconductor memory chip stocks show promising 1 yr. analyst mean target price upsides ranging from 8.47% to 120.69% as of February 21.
  • Analysts project average 35.21% 1 yr. net gains for LEDS, NLST, RMBS, ISSI, MU, & CODE.
  • Consider these as starting points for your stock purchase research for income stocks in the technology sector.

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Press releases from the high technology crowd report marvels of the latest breakthroughs in wearable monitoring and memory devices. If your curiosity has set you wondering about what publicly owned companies may be at the core of such wonders, here is a guide.

Results from Yahoo Finance tallied as of market closing prices February 21 compared six technology sector semiconductor memory chip company stock prices with analyst mean target price results one year hence. SemiLEDs Corporation (NASDAQ:LEDS), a Taiwan firm, exhibited a 120.59% price upside to lead the field.

The chart above used one year mean target price set by brokerage analysts matched against February 21 closing price to compare six memory chip company stocks upside price potentials into 2015. Others on the list beside Taiwan's SemiLEDs were: Netlist Inc. (NASDAQ:NLST) in Irvine, CA with 46.34%; Rembus Inc. (NASDAQ:RMBS) from Sunnyvale, CA showing 22.14% upside; Integrated Silicon Solution Inc. (NASDAQ:ISSI) out of San Jose, CA posted 16.43% upside; MicronTechnology, Inc. (NASDAQ:MU) in Boise, ID showed 9,29% upside; Spansion, Inc. (CODE) projected 8.47%.

The number of analysts providing price estimates was noted after the name for each stock on the source table for the chart. Three to nine analysts were considered optimal for a valid mean target price estimate.

Wall Street Wizards Wand 35.21% Average Net Gain from 6 Memory Chip Makers By 2015

Six Yahoo Finance picks were graphed below to show relative strengths from $1k invested in each as of February 21, 2014 compared to prices projected by Yahoo Finance analyst mean 1 year target estimates to the same date in 2015.

Aggregate single share prices of the six stocks created data points for 2014. Projections based on aggregate one year analyst target share prices from Yahoo Finance created the 2015 data points for the green line showing price appreciation.

Click to enlarge

Yahoo Finance projected an aggregate single share price increase of 15.6% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the next to the last column on the chart. Again, three to nine analysts was considered optimal for a valid projection estimate.

A beta (risk) ranking for each analyst rated stock was provided in the far right column of the chart above. A beta of 1 meant the stock's price would move with the market. Less than 1 showed lower than market movement. Higher than 1 showed greater than market movement. Negative numbers show movement the opposite of market direction.

Six Memory Chip Makers Stocks Net 6.4% to 118.5% by February 2015

A hypothetical $1000 investment in each stock was divided by the current share price to find the number of shares purchased. Thereafter the analyst mean target price was used to gauge the stock price upsides and net gains less $20 purchase and sale broker fees as of 2015.

Six possible profit generating stock trades from $1k invested in each revealed by Yahoo Finance for 2015 were:

SemiLEDs Corporation netted $1,185.88, based on a mean target price estimate by one analyst less $20 in broker fees. The Beta number showed this estimate subject to volatility 7% less than the market as a whole.

Netlist Inc. netted $443.41 based on a mean target price estimate from one analyst less $20 in broker fees. The Beta number showed this estimate subject to volatility 44% less than the market as a whole.

Rembus Inc. netted $201.39 based on a mean target price estimate from six analysts less $20 in estimated broker fees. The Beta number showed this estimate subject to volatility 68% more than the market as a whole.

Integrated Silicon Solution Inc netted $144.27, based on a mean target price estimate by six analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 46% greater than the market as a whole.

Micron Technology, Inc. netted $72.90 based on a mean target price estimate from twenty-eight analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 86% more than the market as a whole.

Spansion, Inc. netted $64.71 based on a mean target price estimate from nine analysts less $20 in estimated broker fees. The Beta number showed this estimate subject to volatility 13% more than the market as a whole.

The average net gain in price was 35.21% on $6k invested as $1k each in these six stocks. This gain estimate was subject to average volatility 27% greater than the market as a whole.

The stocks listed above were suggested only as decent starting points for your technology sector semiconductor memory chip company stock purchase research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in RMBS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.