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.

UPDATED STOPS

We have had some big winners in the short history of this blog (thanks short sellers!).

Below are approximate entry prices and current stops
AMSC in 15.30 new stop 16.45
MVIS in 4.40 new stop 5.30
OSTK in 18.55 new stop 17.90
ASVI in 16.00 new stop 17.45 (nice move today)
JADE in 11.50 new stop 11.40
ARTG in 2.74 maintain stop at 2.63

E-Commerce Software Products

that's the business of Art Technology Group (ARTG). Sounds like a good business to be in doesn't it? The short sellers apparently don't thinks so, but a look at the chart shows that the buyers seem to have the upper hand in this stock and buying the stock near current levels with a stop at 2.35 looks like a good bet for a move up towards last year's highs near 4.00. I haven't done any fundamental research, does anyone have any idea why the short sellers are so aggressive on this stock?




Here's the description from Google Finance

Art Technology Group, Inc. (ATG) develops and markets a suite of e-commerce software products, as well as provides related services, including support and maintenance, education, application hosting, professional services and proactive conversion solutions. Through its subsidiary, eStara, Inc. (eStara), ATG delivers OnDemand services for multi-channel interaction. Its Click to Call and Click to Chat services provides online businesses with proactive conversion solutions for enhancing online sales and support. eStara solutions allow customers to initiate a conversation with a sales person or customer care agent by clicking a button on a Website, e-mail, banner advertisement or directory listing, and eStara’s Call Tracking solutions allow advertisers to track the source of each in-bound call, as well as information about callers. In October 2006, ATG acquired eStara, Inc., a provider of proactive conversion solutions for enhancing online sales and support initiatives.

Gemstones and Diamond Jewelry - JADE

is the business of LJ International (JADE), but who cares, look at that chart! That's the story that matters, buyers are in control of this stock but stubborn shorts aren't convinced of the bullish case. The stock is trading just below all time highs and it looks like as long as the stock can stay above 10.25 the shorts may regret their sales. I think I'm going to buy some of this one and risk about a dollar.




If you do care, here is a description of their business from Gooogle Finance-

LJ International Inc. (LJ International) designs, manufactures, markets and sells precious and semi-precious gemstones, as well as diamond jewelry. The Company also offers high-end pieces set in yellow gold, white gold, platinum or sterling silver and adorned with semi-precious stones, diamonds, pearls and precious stones. LJ International distributes mainly to fine jewelers, department stores, jewelry chains in the United States, and electronic and specialty retailers throughout North America and Western Europe. The Company also owns certain commercial and residential properties located in Hong Kong, which are held primarily for investment purposes. LJ International has expanded into the retail sales line of business involving direct sales to consumers in China through company-owned retail stores under the brand name ENZO. As of December 31, 2005 the Company operates eight ENZO retail stores in Hong Kong and China.

Superconductors, Imaging Engines, Online Shopping & Rubber Track Machines

On Monday I sugested looking at American Superconductor Corp (AMSC), the stock exploded higher that day and it appears shorts may have experienced their first bout of real fear! The short position increased by 5000,000 shares from April to May, that looks like a bad move! At this point I would think 15.45 is a good spot for a stop on long positions.



On Tuesday we looked at shares of Microvision, Inc (MVIS) and the stock made a nice run for 2 days. On Thursday it paused slightly with the market selloff but came roaring back on Friday. The short sellers did slightly decrease their position last month but with lighter volume last month it makes it more difficult for them to cover their stupid bet!! A stop near 4.30 seems right for this one. The Ant & Sons blog has a good analysis of a potential catalyst to get the shorts buying.



The short position in Overstock.com, Inc. (OSTK) was little changed last month and the stock still looks poised for upside from here. A stop near 17.30 makes sense.



The short position in shares of A.S.V., Inc (ASVI) was also little changed last month and the stock still looks like it has great upside potential with limited risk by placing a stop near 16.00



Enjoy the long weekend fellow squeezers!

Updated Short Interest Numbers

are now available at the nasdaq website, see direct link on right hand side.
Here are the updated short positions for the stocks mentioned this week.

MY FAULT

I warned you yesterday that this blog being launched after such a strong rally was a contrary indicator and today we get the strongest selloff since February. I hope you locked in some of the quick gains in AMSC and MVIS, that's just common sense. I do not think those stocks are done going higher, it is just being defensive and as I always hear Brian at ALPHATRENDS say "defense wins this game".

Rubber Track Machines and Related Accessories

that is the unexciting business of A.S.V., Inc. (ASVI). What is exciting is the thought of what might happen to the price of the stock if there was a catalyst that would motivate the people who sold short 6.2 million shares of the stock to cover! Based on the 30 day average volume of 168,676, it would take them 37 days to buy all that stock back. Anyone have an idea of what that catalyst might be? I don't but if you do, please share in the comments area. For now I think it is worth buying a little with a protective stop just under 16.





Here's the rest of the description of this boring company from Google Finance (I didn't read it)

A.S.V., Inc. (ASV) designs, manufactures and sells rubber track machines and related accessories, attachments and traction products. It has three product lines, the Posi-Track product line, the original equipment manufacturer (OEM) undercarriage product line and the Loegering product line. Posi-Track products are machines used in the construction, agricultural, landscaping, rental, military, and other markets. The OEM Undercarriages are sold to Caterpillar Inc. as a primary component on its Multi-Terrain Loader product line. Loegering is a manufacturer of traction products for wheeled skid-steers and also provides attachments for the skid-steer market. In January 2006, it introduced two models in its Posi-Track product line, the SR-70 and SR-80. In October 2006, ASV introduced a track utility vehicle in its Posi-Track product line, the Scout SC-50, which features a 50 horsepower diesel engine, cab seating for two and a flatbed rear deck with the capacity to carry two tons of cargo.

CONTRARY INDICATOR?

OK, let me point it out before someone else does. A brand new blog about short squeezes as the S&P 500 reaches for all time highs after a close to 10% rally over the last 2 months? It does reek of amateurism and lets be realistic, the first two stocks jumped 20% this week. No one is that good, not even broker A. AMSC and MVIS were just lucky right? I don't know, but the profits spend the same whether it is luck or skill. Preservation of capital is the number one rule in this game and the shorts have severly misplayed their hand. The shorts will have their day, it just doesn't look like it will be soon. Protect your profits and don't let yourself become feed for the bears when the market does turn.

Overstock.com Inc (OSTK) looking primed for a squeeze!

Overstock.com, Inc (OSTK) is a controversial company, just ask Herb Greenburg. Largely due to management issues (ability to execute their business plan and questeions about the competence of their CEO) the stock has attracted and maintained a large short position. The fundamental guys may be right, but it looks like the tide is turning for the stock and buyers appear close to dominating the action once again, particularly if the stock can trade above $20.00. Volume has been low over the last month but is picking up again with some buying over the last week. The adage "don't short a dull market" applies to individual issues as well as the market and the days to cover now stands at just under 25 days. If there is a dramatic change when the May numbers are released in the morning I will post an update. I'm going to buy some of this one and maybe take some September 20 calls at about $1.50.





Here's a description of the fundamental nonsense from Google Finance.


Overstock.com, Inc. is an online closeout retailer offering discount brand name merchandise, including bed-and-bath goods, home decor, kitchenware, watches, jewelry, electronics and computers, sporting goods, apparel, designer accessories and travel services, among other products. The Company also sells books, magazines, compact discs (CDs), digital versatile discs (DVDs), videocassettes and video games (BMMG), and it operates as part of its Website an online auction site, which is a marketplace for the buying and selling of goods and services. The Company offers approximately 36,000 products under multiple shopping tabs on its main Website, plus almost 500,000 media products on its BMMG tab. The Company’s shopping business includes both a direct business and a fulfillment partner business. Products from its direct segment and fulfillment partner segment are available to both consumers and businesses through its Wholesale bulk purchase program.

Short Interest Data

is out today for the NYSE, it will be released for the Nasdaq tomorrow. What stands out the most to me is the short interest in the iShares Russell 2000 (IWM), this index has been hitting new highs for the last three plus years and the index now has THE LARGEST short position of any NYSE stock (second is Ford). As of May 15, the outstanding short position is 237,133,225 shares, that is a little over 19.5 BILLION dollars short the index!! Is it fuel for the fire, or are we headed for disaster? The chart indicates further upside.

Microvision Inc (MVIS) Found Support, Ready to Rally?

Microvision Inc (MVIS) looks like it found support and could be ready to rally from here. I wonder how many of those 4.1 million shares sold short are in a winning position? HEHEHE!!! The stock looks ready for a push up towards 6.20.

Broker A at Fly On WallStreet has a large position in the stock and he has a lot of good information about the stock if you search his site.

Here is the description of the company from Google Finance:

Microvision, Inc. (Microvision) is a developer of miniature display and imaging engines based upon its integrated photonics module (IPM) architecture. The IPM utilizes the Company’s knowledge in two dimensional micro-electrical mechanical system (MEMS) light scanning technologies, lasers, optics and electronics to create a video or still image. The Company has entered into development agreements with commercial and United States government customers to develop prototype and demonstration units based on its light scanning technologies. Microvision was established to acquire, develop, manufacture and market light scanning technology, which projects images using a single beam of light. Microvision has one commercial product, Flic, a hand-held bar code scanner. In addition, Microvision has produced and delivered various demonstration units using Microvision's display technology. In January 2006, Microvision sold certain shares of its Lumera common stock.

AMSC Squeeze Is On!

American Superconductor (AMSC) Looking Good!!

The shorts are getting fried, that is good if you are long like me. I will share some more of my favorite squeeze ideas in the coming days, be sure to check back.

American Superconductor (AMSC) Squeeze Coming?

This stock is knocking at multi year highs and it looks like the shorts are trapped. Almost 6 million shares short with an average volume of 380k means it would take the short sellers 15.65 days of buying to cover! Earnings are due on Thursday, maybe the company will provide a catalyst in their comments that triggers a breakout and a good old fear driven bout of panic buying by the shorts?




Here is the description of what the company does from Google Finance.

American Superconductor Corporation (AMSC) is an electricity solutions company. AMSC develops and manufactures products to improve the cost, efficiency and reliability of systems that generate, deliver and use electric power. AMSC conducts its operations through three business units: AMSC Wires, a developer and manufacturer of HTS wire; SuperMachines, a designer and manufacturer of rotating machines based on its HTS wire, including electric motors, generators and synchronous condensers, and Power Electronic Systems, a designer and manufacturer of power electronic converters and integrated power electronic systems that increase power grid reliability and throughput. On January 5, 2007, the Company completed the acquisition of Windtec. Windtec is operated by the Company's Power Electronic Systems business unit. In May 2007, the Company completed the acquisition of Power Quality Systems, Inc.