Hold - Price 16.79 on August 4
by Jefferies & Co.

We remain cautious on shares of BOOM [which provides explosion-welded cladmetal plates and welding services], on concerns over lower capacity-utilization rates in key end markets and anticipated lower capital spending. This could negatively impact overall demand. Our 14 target is based on a 7 times EV/Ebitda multiple on our 2010 outlook. This is at the low end of the historical range, given the market uncertainty. Risks include dependence on a limited number of customers…delayor cancellation of projects, potential for tightness in metal supplies, and fluctuations in timing/ size of orders. Market cap: $212 million.

Standard & Poor's thinks Dynamic Materials (BOOM) is one to watch. "With signs of economic improvement and pricing strength in commodity markets, particularly energy, we expect Dynamic Materials' order rates to begin to improve." Monday, the Boulder, Colo., company moved from an annual dividend of 15 cents a share to a quarterly one of four cents, for an annualized increase of a penny. This is the first payout boost since February 2006. Dividends were initiated in 2005. The respective payment, record and ex-dividend dates are July 15, June 30 and June 26. Dynamic Materials is the world's leading provider of explosion-welded clad metal plates for the oil and gas, alternative energy and shipbuilding industries, among others. Traded on Nasdaq, its shares have been changing hands a bit above 21. Their 52-week range is 38.21 to 4.95. Yield: 0.76%. First-quarter net slipped to 38 cents a share on revenue of $49.8 million (analysts had estimated 24 cents on volume of $47.3 million) from 41 cents on $58.4 million of revenue a year ago. While the company's order flow has been hurt by such things as financing limitations and budget cuts, it is optimistic because many orders relate to important international infrastructure projects. S&P sees "significant growth ahead for this well-managed company." It recently raised its investment opinion on Dynamic Materials to Buy from Sell, with a 12-month price target of 25.

Spec. Know company, know biz, good fundamentals

Fast moving

commodity stock

strong industry

solid base

Dynamic Materials Still Booming, Says Manager
Bob Johnson, portfolio manager for the Satuit Capital Micro Cap fund, discusses his favorite names including Dynamic Materials, Particle Drilling Technologies and Flotek.

Click here to watch the video.

pin action off infrastructure

new metal joining technique with long term growth potential

it's a bust

with a price target of 58 i'd be looking to get out of this one soon

Can't get out of their own way

Dynamic Materials always report a backlog of orders, I think they suffer from inefficient capacity utilization not strong demand.

Had a lot of promise last year and didn't follow through