Well Stoney... I'm UP afterhours already (I bought in close to $34). It wasn't down $1, it was down almost $4... the market close was OVER $37, the afterhours low was $33 something. One reason I hopped in AH was because the first report I read was the 'beat by 30%"... and then I looked at the price, and went... Ok, I'm buying. LOL! THEN I went to look for more news... I mean you don't beat by 30%, AND revise your next 3 quarters UPwards... to lose 12% of your value on the news of it. This is impossible within 10 minutes of the news UNLESS it was below analyst expectations, and the upside was priced in... it wasn't. The stock didn't even start moving til an hour before the bell. The earnings was absolutely NOT below expectations, it was an upside surprise that didn't occur til AFTER the closing bell. THEN I found the Reuters article that said that they lost net income... HUH? Someone got it very wrong, and the market reacted to the Reuters article. I looked at the time, and whoever filed that Reuters was first, and maybe misunderstood the earnings report. Actually, as I type this, it's coming back up... someone's head will roll over this one I think.And maybe we just made a shitload more money.
Ahh... I just saw the actual report... net income DID fall. But that's because they had a special 'Income from Discontinued Operations' in the LAST quarter that artificially boosted their net for that quarter only. Their gross revenue DID go up by nearly 30%. More impressively, their CASH is up by 40% for the quarter, and up 144% from the year ago quarter. Damned... nice nice find, Stoney. I just hopped in as a short play, but this may be a long term keeper. It's a niche market that hits oil drilling, refineries, shipbuilding, aircraft, both commercial and military, refrigeration... all things that developing and developed nations need. Their site claims they are the world's leading provider of explosion-welded clad metal plates (fusing metal plates for stronger bonding). Wow. NICE find, this may beat boring old railroads.
In case you can't see S&P's direct reports, here's what they have to say about BOOM (hard to get better than this): CORPORATE OVERVIEW. BOOM's primary products are explosion-welded clad plates. Explosion weldcladding uses an explosive charge to bond together plates of different metals that do not bond easily with traditional welding techniques. BOOM's DMC Clad segment (95% of revenues in 2005) provides explosionwelded clad products for equipment that requires resistance to corrosion, high temperatures, or high pressure in the upstream oil and gas, oil refinery, petrochemical, hydrometallurgy, aluminum production, shipbuilding, power generation, and industrial refrigeration industries. DMC has explosion metalworking operations in the U.S., France and Sweden. Through its AMKWelding segment, BOOM also provides advanced welding services, primarily to the power turbine and aircraft engine manufacturing industries. AMKWelding's facility is in South Windsor, CT. Clad metal plates consist of a thin layer of an expensive, corrosion-resistant metal such as titanium or stainless steel, which is metallurgically combined with a less expensive base metal, typically carbon steel. Cladding techniques were developed to produce materials with properties similar to those of a solid metal, but at a lower cost. While roll bonding (another type of cladding technique) most frequently bonds stainless steel or nickel alloy to a steel plate, welding zirconium, titanium, or tantalum to a steel plate or an alloy plate can only be done by explosion-weld cladding. Eight broad sectors comprise the bulk of the demand for DMC Clad's business: 1) upstream oil & gas - the increase in oil and gas production from deep, hot and corrosive fields has significantly increased the demand for clad equipment; 2) oil refinery - U.S. refineries have recently been running near full capacity, and adding capacity and reducing costly downtime are a high priority; 3) chemical and petrochemical; 4) hydrometallurgy - the conversion of raw ore to metal using acid leaching; 5) aluminum production; 6) shipbuilding; 7) power generation; 8) industrial refrigeration.We believe that chemical and petrochemical markets represent the largest markets for BOOM. Sales outside the U.S. accounted for 59% of total sales in 2005 (55% in 2004). South Korea (10% of 2005 sales), Canada (10%), Spain (7%), Malaysia (6%), and China (4%) were the five largest international sales regions. Of BOOM's 181 permanent employees, 109 were based in the U.S., 58 were based in France, at the Nobelclad subsidiary, and 14 were based in Sweden, at the Nitro Metall subsidiary. All manufacturing operations take place in the U.S., France, or Sweden. One of the larger markets for titanium clad equipment is in the manufacture of Purified Terephthalic Acid (PTA), a precursor product for polyester, which is used in everything from carpets to plastic bottles. COMPETITIVE LANDSCAPE. DMC Clad is the leading producer of explosion-welded clad products in North America and it has a strong position in Europe against smaller competitors. DMC's main competitor in Asia is a division of Asahi Kasei, which has competitive technology and a recognized brand name. There are several explosion-welded clad producers in China, most of whom are currently not exporters outside of their domestic market. Demand for DMC's products in the U.S. has been driven historically mainly by plant maintenance and retrofit projects at existing chemical processing, petrochemical processing and oil refining facilities. However, during 2005, the company experienced an increase in inquiries relating to new plants and large plant expansion projects in the U.S. and other parts of the world. A significant portion of sales is derived from a small number of customers. In contrast to the U.S., historical demand for DMC's clad products in Europe and Asia has been more dependent on large projects, such as the building of new PTA plants in different parts of the world, including China, and on sales of electrical transition joints that are used in the aluminum smelting industry. FINANCIAL TRENDS. Return on invested capital (ROIC) (after-tax operating profits as a percentage of debt plus equity) increased to 28.1% in 2005, from 4.3% in 2003, as sales increased strongly without corresponding increases in manufacturing costs or operating expenses. BOOM's ROIC is well above the 12.1% recorded in 2005 for the Industrial Machinery sub-industry, but it is also much more volatile than the subindustry, as BOOM's profits tend to be highly cyclical. BOOM has significantly reduced its long-term debt in recent years, with long-term debt to total capital at just 6% of total capital as of December 2005. Strong free cash flow (cash flow from operating activities less capital expenditures) has enabled BOOM to pay down debt, with free cash flow at 11.1% of sales in 2005, versus 6.7% for the sub-industry. As a result of this strong cash flow, cash and short-term investments as a percentage of total assets was 14% as of December 2005. (and that cash just went up 40% in the last quarter alone). NIIIICCEEEEE. Any comments, snide remarks, arguments, and things to consider welcome.
Mr Scott I am in your gentle hands. I much prefer reading you than looking at my account or listening to my broker complain on the answering machine... I have not punched up BOOM yet I don't see it listed as biggest losers this am yet... so so far so good? - Nervous little stoney byach!
Stoney, it's fine. I even bought MORE in the 33's, and am all green. Not sure how much you bought at, but it's going to be OK. NOW I'm going shopping.
from what hels02 wrote, boom though funny the name sounds does seem like a good stock to own given the fact that people have a tendency to blow things or other people up
Alright Hels! Nice DD.... and yes BOOM can be good in these times of war I guess. I just hate when the headline writers have a good laugh at my expense. Now I need to create a Private Equity buzz about this company shouldn't take more than a week and we can get this going into the low $40's....
All of a sudden this volume came out of nowhere right at 2:30pm and rocked my thesis. Im thinking it goes lower from here to 31. Hope Im wrong and this is just a glitch, but I have a feeling all this selling was for reason. Nothing like a little volume to ruin your entire thesis.