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DMC Global Thrives On The Fracking Boom

October 3rd, 2018 · No Comments

  • Despite the company beating expectations and producing all out, the shares crashed 20% on Q2 earnings as there are some cost increases related to capex and litigation.
  • Capex will temporarily increase but this will expand capacity as well as margins, so we view this as a positive.
  • The fracking boom, which underpins much of the company’s progress also seems pretty well set for the near future.
  • A considerable uncertainty is the patent infringement case brought by a competitor, although management seems certain about winning this.

Source: DMC Global Thrives On The Fracking Boom – DMC Global Inc. (NASDAQ:BOOM) | Seeking Alpha

Tags: BOOM