Some investors regard underfollowed companies as potential gems, while others would argue the company is underfollowed for a reason. A disadvantage in investing in an underfollowed company is its press releases may be missed or dismissed by the market. It appears this may be the case for NVE Corporation (NASDAQ:NVEC). The spintronics innovator's last two press releases announced key product developments, and the market hasn't seemed to notice.
The Company
NVE Corporation designs and manufactures spintronic products such as high-performance sensors and couplers used to acquire, store and transmit data. Electron spin is used in spintronics instead of electron charge. Over the past few years, the company has developed sensors and couplers aimed at revolutionizing several markets - Internet of Things, food safety, automotive, medical, anti-tampering, hearing devices, even deep space. Of late, the potential in the automotive market seems to be garnering much of the company's energy.
In early November 2018, NVE received certification for IATF 16949 conformance in the automotive industry. The accomplishment expanded the number of products carried through a private-label partnership with a leading supplier of semiconductors for the automotive industry.
Both we and our partner are working to ramp up sales. It’s an important line for them. It’s an important partnership for us. And, it opens up, in the long-term, new markets such as automotive.
NVE went on to explain this partnership also benefits the company because the automotive industry tends to be “insular” and “risk-averse.”
In its fiscal 2020 third-quarter earnings call in January 2020, CEO Daniel Baker discussed how NVE's smart sensors should prove formative for the automotive industry.
And the number of sensors in cars is projected to increase rapidly, driven by a move towards electric, autonomous and more sophisticated safety systems. We have sensors that can be used to sense current which is used
