Seeking Alpha: How Long Will Investors Have To Wait For NVE?

While a good idea can be the starting point for a good investment candidate, investors who lose sight of the importance of execution and market development can set themselves up for a nasty shock down the line. NVE (NVEC) would seem to be on to something potentially big with its spintronics technology, but the company's product sales have gone nowhere fast for the last five years and the stock has been largely stuck between $40 and $60 since May of 2009.

There are certainly intriguing applications and potential markets for spintronics - electronic devices are getting ever-smaller and that process requires more and more advanced technologies (and/or materials). NVE's technology could certainly find key positions in markets like factory automation, healthcare, automobiles, and telecom, but the markets have been frustratingly slow to develop. NVE doesn't look notably cheap today unless you are willing to make some bullish estimates that the spintronics market will accelerate notably (and relatively quickly), but NVE is a cash-rich, high-margin company with almost a decade of free cash flow generation behind it. NVE may end up as a company with a great future in its past, but today's shareholders aren't exactly suffering while the company tries to develop a commercial market for this technology.

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How Long Will Investors Have To Wait For NVE?