Thursday, May 31, 2007

Dynamic Materials Corporation (Public, NASDAQ:BOOM)

has had a history of toying with the short sellers and it now looks like the stock could be ready to break higher and put the pressure on the skeptics once again.

According to a friend I met online these are a few potential catalysts to motivate buyers.
-The company has an annual meeting scheduled for June 6.
-During which they will announce the annual dividend, which I believe will be significantly increased over last year.
-Also, they are approving an increase to the authorized, but not available shares. It is just enough to cover a stock split and new executive compensation options.
-They will update investors on the Mt Braddock facility expansion. They are doubling capacity and I have information that it is completed... and they have been unlocking backorders at a record pace. 2Q earns should crush estimates.
-They will also provide updates on supply chain solutions (metals have been tight) and I believe this is fixed, hence the announcement of the recent contract win being shipped by 4Q. They could not have done that without fixed supply chain.

You can read more of this work on his BOOM BLOG

Here's what they do, from GOOGLE FINANCE

Dynamic Materials Corporation provides products and services requiring explosive metalworking. It operates in two segments: Explosive Metalworking or DMC Clad and AMK Welding. Detaclad is the trade name, under which DMC Clad markets its explosion-welded clad products. DMC Clad’s products are used in critical applications in a variety of industries, including upstream oil and gas, oil refinery, chemical and petrochemical, hydrometallurgy, aluminum production, shipbuilding, power generation and industrial refrigeration. The Company’s Explosive Metalworking operations are located in Pennsylvania, France and Sweden. Through its AMK Welding segment, the Company also provides advanced welding services, primarily to the power turbine and aircraft engine manufacturing industries. AMK Welding is a specialized welding subcontracting shop for complex shapes used principally in gas turbines and aircraft engines. AMK Welding’s operations are conducted at its South Windsor, Connecticut facility.