Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, explosion-welded clad metal plates maker Dynamic Materials (NASDAQ:BOOM) has earned a coveted five-star ranking.
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) |
Boulder, Colo. (1965) |
|
Market Cap |
$254 million |
|
Industry |
Machinery |
|
Trailing-12-Month Revenue |
$181 million |
|
Management |
CEO Yvon Cariou (since 2000) |
|
Return on Equity (Average, Past 3 Years) |
25.1% |
|
Cash / Debt |
$30 million / $58 million |
|
Competitors |
Halliburton (NYSE:HAL) |
|
CAPS Members Bullish on BOOM Also Bullish on |
General Electric (NYSE:GE) |
|
CAPS Members Bearish on BOOM Also Bearish on |
Bank of America (NYSE:BAC) |
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.
What do you think about Dynamic Materials, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
