BOOM Goes The Account?

Discussion in 'Stocks' started by stonedinvestor, Apr 26, 2007.

  1. Normally I hate buying stocks that have symbols that spell out trouble. RACK comes to mind as in " investors are on the rack today " sometimes it works though and today I take a stab at blowing up my account with BOOM!

    In feb they crushed and got little love combined two day 3% here we are next reporting period the stock has wasted time and done nothing. May be a sleeping giant. They report tomorrow. I've looked hard today for plays- they are mighty tough to find. This may be one.
    Buying 350 BOOM! ~ stoney
     
  2. hels02

    hels02

    STONEY!!!! I hope you're around, or anyone else in this thing... I have never seen anything like this before.

    Here's the background: I decided to buy your recommendation, just for fun, since I ignored your last 5:p.

    BOOM looked like a solid stock, fundamentals were good, earnings unreal, blah blah.

    This stock closed after hours at $37.115... beautiful last 1/2 hour.

    Soooo... I hopped into it AfterHours a bit above $34
    (for the tick watchers, I'm not stating the pennies, how much I'm in for is no one's business).

    Then, I go look at the news.... and... WTF is UP with the earnings?!

    Is it THIS: http://www.marketwatch.com/news/sto...7-150A-416E-8F07-B12FBA261F48}&sid=1852&symb=

    "BOULDER, Colo., April 26, 2007 /PRNewswire-FirstCall via COMTEX/ -- Dynamic Materials Corporation (DMC) (BOOM : Dynamic Materials Corporation
    News , chart , profile , more
    Last: 37.12+0.79+2.16%

    4:38pm 04/26/2007
    BOOM37.12, +0.79, +2.2%) , a leading provider of explosion-welded clad metal plates, today reported financial results for its first quarter ended March 31, 2007.
    Sales increased 31% to $33.1 million from sales of $25.2 million in the first quarter last year. Gross margin was 33% versus 37% in the same quarter a year ago. The decline in gross margin is attributable to normal quarterly fluctuations in product mix. First quarter income from operations increased 17% to $7.5 million versus $6.4 million in the comparable year-ago quarter.
    Income from continuing operations increased 18% to $4.9 million, or $0.40 per diluted share, from $4.1 million, or $0.34 per diluted share in the first quarter last year. Net income was $4.9 million, or $0.40 per diluted share, versus net income of $5.5 million, or $0.45 per diluted share, in the first quarter a year ago. Last year's first quarter net income included a gain from discontinued operations of $1.4 million, or $0.11 per diluted share, net of tax, attributable to the sale of a real estate purchase option."

    ORRRR is it THIS: http://yahoo.reuters.com/news/artic...04-26_20-22-16_WNAS8263&type=comktNews&rpc=44

    TABLE-Dynamic Materials Q1 net income falls
    Reuters - April 26, 2007 4:22 PM ET
    April 26 (Reuters) -

    DYNAMIC MATERIALS CORP. (BOOM) (in $) Latest Yr-ago qtr EPS (diluted) 0.40 0.45 Net (million) 4.9 5.5 Net sales (million) 33.1 25.2 Reuters Estimates: EPS $0.35, revenue $27.2 million.


    Omg... Which is it?! Is it UP or is it DOWN?? What the heck?

    If the first is right, it beat by a LOT, with an upgraded guidance for the next 3 quarters... if the Reuters is right, its 'Net Income Falls".

    Right now, this thing is down almost $4 afterhours. I KNOW you got in higher than I did, do you have a clue what happened here?
     
  3. Im not convinced until it closes above 38. Trendline connecting 3 pts.
     
  4. Never hold this as a trade into earnings, very volitile metals prices, revenue booking etc. This is a long term accumulation in the 20's. I traded this into earnings all last year, only held once with the same result.

    Nice backlog, costs are up, margins will be squeezed, this is a long term growth story.
     
  5. hels02

    hels02

    bsparky... the earnings came out after hours... and there are conflicting reports! Argh.
     
  6. Hehehe. You guys do not see what is going on. Look at my chart, trust my chart. You should buy the stock in afterhours and here is why.

    This is the famous cup/handle formation that I keep lecturing about on elitetrader. The reason why the stock dipped was for technical reasons.

    Do not be scared, do not be afraid. Listen to me. Look at my math. Read the Dow Theory like I have.

    You have a large cup and then you have the handle. Now you are getting whipped by the handle, but do not despair. Do not be afraid. Buy on this dip. Now listen to my logic.

    The height of the right peak is 38.50.

    The bottom of the cup is around 28.45, approximately.

    38.50-28.45= 10.05

    10.05/2= 5.025

    38.50-5.025= 33.47 (target price)

    The afterhours low is 33.50.

    So now you have been formally introduced to the handle. If you decide to hold the shares, then it will take 1-4 weeks to pull out of the handle. However, the conclusion will be a breakout.

    The target price of said breakout will be 38.50+10.05=48.45.

    The price might go lower tommorrow, but the good news is that it wont go any lower then 31.80.

    Im sorry that you have experienced the handle. Remember, whenever you have a cup, there will come the handle. The handle wont feel good as it slaps your butt, but thats how we learn!
     
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  7. Here is an example of the cup/handle.
     
  8. Dont forget the larger head and shoulders pattern which is now about 1 year old.

    If Boom only corrects back 1/2 of the cup's height then thats a bullish sign. If it corrects back fully or 2/3 then I would be worried.

    Once that neckline is broken, then we will see much higher prices. Unfortunately, it appears there was an attempt to break the neck and it failed.

    It will have one more shot. The price is going to pull back 1/2 of the right shoulder and then make another attempt for the neckline. This process, like I said, will take 1-4 weeks.

    I am very certain there will be a retracement at least to the neckline, but cannot be certain if the retracement will result in the neck breaking.

    So there are two formations at work. The larger is a reverse head and shoulders, but the right shoulder is a cup.

    The left shoulder is a v-bottom, its not a cup. The head kind of looks like a v-bottom, not a cup. The right shoulder is definately a cup with a double bottom.

    So you have two formations at work.

    I would buy in the afterhours session. I am almost certain this is a technical problem.

    I say it goes to 45, but it might take up to 1 month to go back to the neckline and then maybe another month to reach the target price. **Sell before the target price.** or you will be sorry.
     
  9. Is the "9" on your chart a Demark indicator?
     
  10. hels it was an interesting & confusing report.

    This qtr the expected trouble getting materials did not happen so they beat... Because this qtr was Higher 2nd qtr will now come in line with this qtr so it will look like no growth... full year unchanged.

    Now when I run the numbers one way this makes sense and when I do it another we just lose this 6 cent beat- I'm confused.

    That last rush in the stock today was a trigger for me I started buying in my wife's Ira too. I heard it was down $1 plus in AH not happy.

    I'll give the analysts a crack at it tomm, if ever there was a company in the right place at the right time this is it... not feeling management tonight but I'm grumpy. ~stoney
     
    #10     Apr 26, 2007