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Barry Gitarts submits: I have been following Dynamic Materials (Nasdaq: BOOM) for over a year and the whole time the stock has been scary to buy because of its Mt. Everest looking chart. Thanks to a secondary offering by some old bagholders, the stock has sold off the past month. I think the stock has been beaten down too far and makes for a good buying opportunity.

Dynamic Materials is one of the lowest cost claded metal producers in the world. Its main competitor is Asahi Kasei in Japan, which can't really compete because of shipping costs. The industries that BOOM serves are petrochemical, refining, hydrometallurgy, aluminum, shipbuilding and energy. All of which are booming right now.

This puts Dynamic Materials in a sweet spot with 112% EPS growth in 2005 & 81% over the last 5 years. LT debt/cap has been reduced to 5% and ROE has grown from 17% to about 40% currently.

With this kind of growth, a larger float and a marketcap over $300mm, it's not surprising to see a Wall St firm initiate coverage last week. I always find it funny how institutional investors refuse to buy a small amount of shares in a company when its a smallcap, but they will pay a lot more for the same amount of shares when its a mid or largecap. Hey! That sounds like an inefficiency.

Disclosure: Author may be long BOOM for self and clients.

Source: Dynamic Materials: In the Growth Sweet Spot (BOOM)