The anticipation of upcoming demonstration and outcome spurred NLST’s share price up a staggering 660% from $0.90 per share close to the closing bell Tuesday November 10, up to a high of $6.84 around noon today, November 16.

NetList INc. (Nasdaq: NLST) designs, manufactures and sells memory subsystems primarily for the server, high-performance computing and communications markets. The Company’s memory subsystems consist of dynamic random access memory integrated circuits (DRAM ICs), NAND flash memory (NAND) and other components assembled on a printed circuit board (PCB). The Company also designs custom semiconductor logic devices which are integrated into its memory subsystems. Net sales to the two customers: Dell and Hewlett Packard, represented approximately 90% of the Company’s net sales during the fiscal year ended January 3, 2009 (fiscal 2008).

· NNLST is demonstrating the world’s first 16GB 2 virtual rank (vRank) double-data-rate three, registered dual in-line memory module (DDR3 RDIMM), HyperCloud at the Supercomputing 09 conference in Portland, Oregon, tomorrow. NLST will also showcase the interoperability of HyperCloud memory with standard JEDEC server memory solutions on popular enterprise servers. This demonstration reinforces HyperCloud’s ability to function as a standard RDIMM while increasing memory bandwidth and capacity for datacenter servers.

To showcase its 2-vRank HyperCloud modules, NLST is using industry standard servers, such as the HP ProLiant DL380, and will be demonstrating in the following configurations:

· 8GB and 16GB 2 vRank DDR3 RDIMM functionality

· Three 2 vRank modules per channel

· 1333 Mega Transfers per second (MT/s)

· Interoperability with standard JEDEC DDR3 modules

· Interoperability with different RDIMM capacities

The new release is expected to greatly increase the computing power of customers running memory intensive computing environments, such as virtualization, cloud computing, and HPC applications, which are often limited by memory bottlenecks. As you can imagine the future applications of such a breakthrough are nearly endless, and the potential revenue stream that this product offers for NLST is astounding provided that NLST: 1. develops it fast enough to provide it with a good footing in the market place before competitors release their own versions of similar products; 2. offers the support a cutting edge product like this will certainly require by its consumers; and 3. is willing and able to keep costs at a level that provide the consumer with the highest quality product while also allowing room for profitability, and cost-cutting measures should the need arise.

NLST is trading above its 200 day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

The MACD for NLST currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

The Stochastic Oscillator is registering a bullish signal as the %K line is above the %D; however the oscillator has moved above the critical value of 80 and is now overbought. The overbought condition means that the upwards momentum experienced in this stock is not sustainable. The Stochastic indicator does not however take into account recent company news which as stated above is groundbreaking. Naturally an upward movement like this cannot be maintained forever but I expect it to continue until at least the middle of this week, then profits will most likely be taken and the growth should stall, momentarily.