4DS Memory (ASX:4DS): Non-volatile memory, volatile share price

The 4DS Memory (ASX: 4DS) share price is hitting a new 52-week high today. We take a look at what might be driving the share price higher.

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published January 21, 2021 5:25 pm AEDT

The 4DS Memory Ltd (ASX: 4DS) share price has set a new 52 week high today. At the time of writing, shares are trading 29.41% higher at 22 cents.

Although there is no news out today, this could be a delayed reaction to the company's quarterly activity report that was released yesterday.

Let's take a look at a few of the details highlighted in the report, as well as recapping the recent stellar share price performance.

illuminated circuit board — Image source: Getty Images

Important details for the 4DS Memory share price

Progress and pending

The semiconductor development company highlighted for the quarter ended its Second Non-Platform Lot wafers had been successfully manufactured by imec.

Reportedly, the technical team within 4DS is still reviewing the data from these wafers with the expectation of analysis completion prior to the end of January.

Additionally, 4DS confirmed that its Second Platform Lot wafers will commence by mid-Q1 2021. Discussions are already in the works between imec (the manufacturer) and 4DS to determine the precise time of commencement.

Both the details of Non-Platform results and Platform scheduling is slated to be announced by 4DS in a further update before the end of this month. The company believes the outcome of results from the analysis will pave the way for further steps towards fabricating fully functioning megabit memory.

Imec collaboration extension being finalised

4DS' manufacturing partner, imec, is still discussing the terms of the extension to their collaboration. With the finalisation of the extension in the works, 4DS informed the market that it will provide an update once the extension has been solidified.

A few other details

Some other important details in the quarterly included the recap of Dr. Wilbert van den Hoek being appointed as the new Chairperson of the Board on 30 November 2020. The previous Chairperson, Mr. Jim Dorrian, remains on the board as a Non-Executive Director.

We were also reminded that 4DS has a sales incentive in place. The purpose of this is to incentivise the members to pursue potential takeover deals of the company or sale of the company's intellectual property.

Speaking of which, 4DS now holds 29 USA patents pertaining to its memory technology.

The company also reported that there are no current COVID-related restrictions impeding the company's operations.

Lastly, 4DS' cash as at 31 December, stands at $6.5 million. This is a reduction from the $7.6 million from the end of the previous quarter. Net cash used in operating activities during the quarter came in at $1.18 million. This was a reduction on the $3.29 million from the previous September quarter. This reduction was mainly attributed to the decrease in research and development spending and admin costs.

4DS Memory share price snapshot

The 4DS share price is up an impressive 247.46% in the last 12 months. This is even more impressive when compared to the March low in 2020 of 2.7 cents, making it nearly an 8X from that point.

These gains don't come for the faint at heart though. It has not been a straight line up over this time, with the share price ebbing and flowing by 16% a week on average.

4DS now has a market capitalisation of $224 million.

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