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S&P 500: 1,342.64 Change: +0.17%
Fliujniligui
P&P Score: 3.75 | Points: -44.93 | Accuracy: 54.76 | Average Pick Score: 11.23   Annual Return: N/A  
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Commentary
BUY: NVIDIA CORPORATION (NVDA) Rating: 3
Start Price: $8.02
Points: +72.60
Created: 12/19/2008
I am a gamer and I need this to game. They have the technological lead in the GPU industry. This is their strength, alongside with steward management, absence of debt and ultra-big moat. If me and other Joe want to make a vide-club, we can do it easy. If we want to make GPU, we will not be competitive unless massive amount of time and capital are injected into our venture! NVDA customers are worldwide spread. Big companies use the products (SONY play stations, AAPL computers) so they get a good base sale. On the other end, extreme gamers such as me demands the stronger faster card whatever the price is and they respond to that and maintain leading edge graphics.

New CUDA is more than just games. People modelize proteins, ADN, novel medications interacting with their receptors, other search for oil with all these tools that decupled the calculation speed for non-gaming ultra heavy applications.

And after that there is mobile phones. Every teenager these days has a phone with a screen, sometimes games and I even saw one watching movie on his phone. Emerging markets do have teenagers too. Well this stock is a steal, No need to check in the dark spots of the market to find value these days, you can buy a global leader who is debtless for a punity price and hold it for life without paying any management fee.

1 Comment(s):

Author Fliujniligui     Date 2011-05-21 19:59:41
I don't know why people were selling at 6$ in 2008. I had bought it then. I sold at 12, market cap 2-3 times equity was too much for an unprofitable company. NVDA makes great products and if you are a gamer you appreciate it. However, its profitability is highly swinging up and down, but the ups are few penny per 18$ shares per quarter and the downs are massive charges or stuff that went bad during a process. This company will never earn its market cap by its activity. It has AAA debtless status and will always exist since it really innovates and fullfill customers' need, but for earning stream, I would look elsewhere.

Since it is financially unkillable, however, any instance where it becomes cheap (market cap <1.5-2 times equity) it is a solid buy and dollar cost average down candidate. You can dollar cost average it down to 0 if you want, the company can't become worthless with its current financial state.
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