With that in mind, let's take a closer look at Dynamic Materials' business and see what CAPS investors are saying about the stock right now.
Dynamic Materials facts
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Headquarters (Founded)
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Boulder, Colo. (1965)
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Market Cap
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$254 million
|
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Industry
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Machinery
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Trailing-12-Month Revenue
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$181 million
|
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Management
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CEO Yvon Cariou (since 2000)
CFO Richard Santa (since 1996)
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Return on Equity (Average, Past 3 Years)
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25.1%
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Cash / Debt
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$30 million / $58 million
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Competitors
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Halliburton (NYSE: HAL)
Schlumberger (NYSE: SLB)
|
|
CAPS Members Bullish on BOOM Also Bullish on
|
General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)
|
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CAPS Members Bearish on BOOM Also Bearish on
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Bank of America (NYSE: BAC)
Starbucks (Nasdaq: SBUX)
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97.8% of the 1,527 members who have rated Dynamic Materials
believe the stock will outperform the S&P 500 going forward. These
bulls include Wakester0 and BigOlDave.
Less than three months
ago, Wakester0 tapped the stock as a great bet to boom ahead: "Solid
company with a nice moat. ... I believe this stuck is poised to do very
well when industry begins its inevitable resurgence."
In a pitch from one week earlier, BigOlDave elaborates on the Dynamic opportunity. Here's an excerpt:
[R]ecovery prospects are based on real world
hypotheses: (1) USD will drop against other currencies; (2) more major
contract wins will be announced; and (3) competitors are evaporating.
Regarding
currencies, [Dynamic Materials] takes major hits when the US dollar
appreciates. ... Think of the leverage if the USD flatlines or, as a
lot of speculators think, begins a slow-motion collapse. ...
Regarding
new business, President & CEO Yvon Cariou recently said, "We
believe the current flow of quote requests, coupled with the extensive
list of large infrastructure projects we are tracking, is likely an
accurate gauge of strong future demand.” ...
Still, there are no
competitors in [Dynamic Materials'] lines of business with the critical
mass to take on big infrastructure projects. ... Google “explosion
welding” and you get some very small players, none of whom have stock
that’s publicly traded.
© 2009 UCLICK, L.L.C.
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