Friday, August 31, 2007

 

BOOM: Explosive Gains

My nom de plume, BOOMER, has nothing to do with my age. It has everything to do with the good fortune I have had investing in Dynamic Materials Corporation (Ticker Symbol: BOOM).

I have been long BOOM since early 2005. I have held a core position of 25k shares and trade around the core. The stock is given to radical swings, and it sometimes causes me fits of rage… and diarrhea. I have held up to ~50k shares at any one time, in order to exploit some of these radical swings.

As an aside…speaking of “information asymmetry,” I first learned of BOOM during a lunch appointment in Boulder, CO, the town in which I grew up. BOOM is based in Boulder. I’ll spare you the details, but suffice it to say that staying connected within your community is a great way to exploit little-known opportunities. This pick did not come from my aforementioned screening process.

Recent news:
This company’s management team is very capable, but conservative as they come. They play it close to the vest. I believe the 30% top-line number is conservative. Consider:
Bottom line: If BOOM is not acquired in the next few months (another story altogether) the company will blow out 3Q earnings. I forecast BOOM’s top line growth to exceed 40% this year. Price target $68.

Here’s a clip from Nashville-based rock group The Features; they too “Blow it out.”



UPDATE: Please visit Btuff's blog for in-depth discussion on BOOM.

Comments:
This comment has been removed by the author.
 
Sounds like you have your entire retirement tied up in this emotional crap shot. Get ready to lose about 500k holding a crazy 25000 core position. Your heart will stop old man.
 
nice. tool.
 
Boulder, eh? I grew up in Niwot. Small world.
 
Indeed.
 
i like this article--not preachy just info.
 
Not from CO but lived there for about 7 years. I have been a BOOM shareholder since 2004 and I have written about them on my blog a couple of times.

http://regulationfd.blogspot.com/search/label/BOOM

Good luck,
Tuff
 
Shit, I love when people are passionate about their stocks.

I think I'll buy me some BOOM. Hopefully, it will do better than that VLCM shit.
 
Thanks for bringing BOOM to our attention-- it definitely looks like something worth looking into.
 
tuffy - i borrowed a few things from your post. it was so well written. you rock. guys, you gotta go to tuffy's site. i was thinking about writing up HURC. may i borrow more from you?
 
boomer - whats the bear case on BOOM?
 
bear case goes like this:

supply chain could tighten for reasons outside of the company's control. rendering the expansion useless. backlog falls off as orders are canceled.

also...

the institutional ownership piece is a two-edged sword. ride the wave up during accumulation, but as soon as even one major holder says bye-bye, with such low float, toast.

lastly...

shorts are desperate to control this. the low available float gives them room to manipulate pps. very volitile intraday, even weekly.
 
thx .. in your experience tdg boom around your core, whens the best time to get in and get out considering institutional pukage & shorts pressing?
 
get in at the 50 day if you can. exit on obscene rally days. it can pop as much as 18% in one day (i recall a JPM upgrade last year that did that).

frequently big rally days occur just after a decline to the 50 day. the thing bounces off the 50 day like a superball.

also i have always exited the day of earnings, before the announcement. i missed a huge run last time, but it what worked in the past. this time i am holding.
 
danke
 
Boom, it kind of cracks me up that none of these guys knew the origin of your nom de blog.

Or your blog, apparently. Did you shut it down?
 
It's invite only, but I don;t maintain it as much as I used to. I need to do more. Ill let you know when I refresh it.
 
BOOMER,

Borrow away. I look forward to your write-up.

Tuff
 
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