Middle Coast Investing, an investment advisory firm, has published its third quarterly newsletter. A copy of the letter can be downloaded here. It was a disappointing episode for the company. The portfolio appreciated in the quarter but lagged the indices and nearby benchmarks. The ratio of the portfolio to earnings for the next 12 months (TTM) was 19.7. Cash and equivalents accounted for 17.1% of the portfolio at the end of the quarter, with an average yield of 3%. This compares to 13.4% of the portfolio and 3.9% yield at the end of Q2. In addition, please check the top five fund management to know the best options in 2024.
Middle Coast Investing highlighted stocks like DMC Global Inc. (NASDAQ:BOOM) in the 3rd quarter 2024 letter of the investor. DMC Global Inc. (NASDAQ:BOOM) provides a suite of engineering products and solutions for the construction, energy, industrial production, and transportation markets. One month return of DMC Global Inc. (NASDAQ:BOOM) was 27.79%, and its shares lost 39.02% of their value in the last 52 weeks. On October 7, 2024, the shares of DMC Global Inc. (NASDAQ:BOOM) closed at $13.75 per share with a market capitalization of $275.534 million.
Middle Coast Investing reported the following regarding DMC Global Inc. (NASDAQ:BOOM) in its Q3 2024 investor letter:
The company DMC Global Inc. (NASDAQ: BOOM) – This is a significant situation, similar to Vimeo in Q1. There is an offer on the table to buy DMC Global at $16/share. It looks credible, but DMC and its client – a billionaire – have not spoken to each other.
DMC Global is a business that has three divisions – Arcadia, a building materials company similar to Apogee but smaller, not as strong, and based on the west coast; DynaEnergetics, DMC’s primary business, which provides ‘perforation’ services to oil companies (meaning dynamite for blasting fracking and other oil drilling); and NobelClad, which sells stainless steel to various businesses.
This is not a business I would normally have. But the offer is reliable, and BOOM has already been technically tested, which could mean a sales trend. There are some strange notes around the management here. The stock is not terrible having its 52-week low of $15 (we bought shares at $16). Our worst case scenario is if DMC sells its oil businesses at a low price to focus on Arcadia, and that’s what I’m looking at. “
An aerial view of a power refinery, with large tanks and pipelines explaining the situation.
DMC Global Inc. (NASDAQ:BOOM) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios hold DMC Global Inc. (NASDAQ:BOOM) at the end of the second quarter was 16 in the previous quarter. DMC Global Inc. (NASDAQ:BOOM) reported $171.2 million in sales in the second quarter up 3% sequentially and down 9% from Q2 2023. While we acknowledge the potential of DMC Global Inc. (NASDAQ:BOOM) as an investment, our conviction lies in the belief that AI stocks hold great promise of delivering high returns, and doing so within a short period of time. If you are looking for an AI stock that is as promising as NVIDIA but that trades less than 5 times its earnings, check out our list of cheap AI stock.
In another article, we discussed about DMC Global Inc. (NASDAQ:BOOM) and shared a list of the best oilfield services stocks to buy. In addition, please see our hedge fund investor letters Q3 2024 page for more financial letters from hedge funds and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.
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