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What is June outlook for Netlist (OTC:NLST)?

May 15, 2021  By
In general, we focus on analyzing Netlist (OTC:NLST) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Netlist daily price indicators and compare them against related drivers. Let's first try to review why Netlist investors are seeking stability amid unprecedented economic uncertainty.
Published over a year ago
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Reviewed by Michael Smolkin

We provide investment recommendation to complement the last-minute expert consensus on Netlist. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
The company has Profit Margin (PM) of (15.39) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (9.46) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.09.
The successful prediction of Netlist stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Netlist, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Netlist based on Netlist hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Netlist's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Netlist's related companies.

Use Technical Analysis to project Netlist expected Price

Netlist technical otc stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, otc market cycles, or different charting patterns.
A focus of Netlist technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Netlist trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How important is Netlist's Liquidity

Netlist financial leverage refers to using borrowed capital as a funding source to finance Netlist ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Netlist financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Netlist's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Netlist's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Netlist's total debt and its cash.

Another Deeper Perspective

The company reported the previous year's revenue of 47.23 M. Net Loss for the year was (7.27 M) with profit before overhead, payroll, taxes, and interest of 6.73 M.
 2012 2016 2017 2021 (projected)
Interest Expense2.06 M578 K531 K583.68 K
Gross Profit2.1 M7.4 M6.73 M7.44 M

Deferred Revenue Breakdown

Netlist Deferred Revenue yearly trend continues to be comparatively stable with very little volatility. Deferred Revenue will likely drop to about 6.1 M in 2021. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Netlist Deferred Revenue is comparatively stable at the moment as compared to the past year. Netlist reported Deferred Revenue of 6.17 Million in 2020
2010
2020
2021
20106.86 Million
20206.17 Million
20216.14 Million

Netlist has 53 percent chance to drop below $1.94 in 30 days

The coefficient of variation is down to 707.88 as of today. Netlist is displaying above-average volatility over the selected time horizon. Investors should scrutinize Netlist independently to ensure intended market timing strategies are aligned with expectations about Netlist volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Netlist's otc stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Netlist's otc stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Netlist

Whereas other companies in the semiconductors industry are either recovering or due for a correction, Netlist may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 15th of May 2021, our up-to-date 90 days 'Buy-vs-Sell' recommendation on the firm is Strong Sell. However, we believe Netlist is undervalued with low odds of distress for the next two years.

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Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Netlist. Please refer to our Terms of Use for any information regarding our disclosure principles.

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