Netlist Sees Some Logic (NLST)

Posted in pre-market 
November 17th, 2009

Netlist Inc. (NASDAQ: NLST) is playing a bit of the give-back game this morning.  Frankly, this was getting very hard to comprehend even if the news is good and even if the stocks can manage to keep running higher and higher.   The company rose 39% yesterday after announcing that it was demonstrating its new HyperCloud memory modules at Supercomputing 09.  While this is solid, Netlist is now up 500% since last Tuesday.  Can anyone say, “K-Tel”????

Netlist is still only a $123 million market cap, so any solid news can drive it beyond logic.  So far, the logic crowd is winning with shares down 6.4% at $5.84.  Yesterday’s high was $6.87 and this was under a $1.00 stock just last week.  At 8:38 AM EST we have seen ‘only’ 60,000 shares versus what is a new average of 700,000 shares.  Be advised, average volume was barely 100K Before recent days as the daily share trading volume was 25.7 million yesterday and 11.4 million on Friday.

As far as logic, or being rational…. The markets can always remain irrational longer than you can stay solvent.


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