Top Picks for 2010: Dataram (DRAM)

Kennedy continues, "Dataram is a small company with growing revenues and a market cap of less than $30 million. Founded in 1967, Dataram manufactures computer memory, storage and software products.

"Its products and services deliver IT infrastructure optimization, dramatically increase application performance and deliver substantial cost savings.

"Dataram solutions are deployed in 70 Fortune 100 companies and in mission-critical government and defense applications around the world.

"Second-quarter revenues reported in late November were $10.7 million, up 51% from the $7.1 million reported in the same quarter in the prior year. The company lost $1.6 million, or $0.18 per share.

"Demand and memory pricing is improving, and the company's recently acquired Micro Memory Bank business unit is boosting sales and new products.

"The company also has high hopes for its recently introduced storage area network (SAN) optimization solution called XcelaSAN, which is expected to be available in early 2010. Sales of that product and lower expected R&D expenses going forward should push the company towards profitability.

"The company's stock broke out of nine-week base on big volume Nov. 20, but has fallen back from above $5 to the low $3 range. It looks well priced at these levels."

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