One under-the-radar stock that has quietly turned into a 10-bagger this year is Netlist (OTCMKTS:NLST). Today’s move of more than 15% in NLST stock brings this stock’s gain from early January to more than 1,000%. For investors who have held steady with this speculative over the counter stock, 2021 has been a great year.
The question is — Can this momentum continue into next year?
Well, it appears Netlist is a $1.6 billion market capitalization company with some strong support. Investors appear to like the company’s memory-storage business. A rather “old tech” play, Netlist provides high-performance SSD cards and memory subsystems to enterprise clients. This business, while not super sexy, has grown in demand as big data growth surges. Accordingly, Netlist has found itself in the right place at the right time.
Today, there’s a company-specific catalyst driving NLST stock higher. Let’s dive into what investors are looking at with Netlist today.
NLST Stock Surges on Patent Lawsuit
Today, Netlist announced that the company has won a summary judgment against Samsung (OTCMKTS:SSNLF). Any lawsuit win is a big one for a company of this size. However, being found victorious against a foe such as Samsung is a big deal.
This patent lawsuit centered on a Joint Development and License Agreement between the two companies in 2015. The Federal District Court for the Central District of California found that Netlist properly terminated this agreement, and Samsung does not have any valid license to Netlist’s patent portfolio.
Currently, the jury remains out (literally) on what the direct damages resulting from this case will be. However, investors seem to be factoring in a significant win with today’s price action in NLST stock.
While this move in NLST stock is likely short-term in nature, Netlist is a stock I’ve added to my watch list on this news. Indeed, it will be intriguing to see where this stock goes from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.