November 5, 2010

Long NVEC @ $49.50 - Emerging Technology Portfolio

This is the first trade in a new Portfolio I've created in my trading and business - Emerging Technology.

These are small speculative investments in companies working in the area of key Emerging Technologies. The first investment is in NVE Corporation (NVEC), which has developed memory storage chips based on electron spin, rather than electron charge. This is a long term investment, although I may also uses Automatic Investsor (AI) to manage the holding if the price fluctuates.

You know an area is promising when the big venture capitalists have already taken the competition out of the market completely. Freescale, an offshoot from Motorola, was bought out by Blackstone because they are working on similar technology to NVEC.

From the NVE Corporation Website

Spintronics
Our enabling technology is spintronics...
...a nanotechnology we helped pioneer, which utilizes electron spin rather than electron charge to acquire, store, and transmit information.
We manufacture high-performance spintronic products including sensors and couplers that are used to acquire and transmit data. We have also licensed our spintronic magnetoresistive random access memory technology, commonly known as MRAM.
Our designs use one of two types of patented spintronic nano-scale structures: spin-dependent tunnel junctions and giant magnetoresistors. Both structures produce a large change in electrical resistance depending on the predominant spin of electrons in a thin metal layer. In this way electron spin can be converted to an electrical signal compatible with conventional electronics.
The 2007 Nobel Prize in Physics was awarded for the discovery of GMR. The Secretary of the Nobel Committee for Physics noted, “most important is that the discovery [of GMR] started the field of spintronics, that is, how to make use of the different properties that electrons with different spin have. The full applications (for example, magnetic random access memories for computers) of this new field can only be guessed.


Note: Graph was inserted two weeks after original date of this post.


No comments:

Post a Comment

FIDSX 5.2% in 31 days