Bolt Technology Corp.: Small Cap Wonder

I was running some stock screens over the weekend to get some new and fresh ideas. One stock that caught my interest was Bolt Technologies (BOLT). Perhaps I am a day late with this pick, as the stock is up 8% as I write this. Nevertheless...

What I find interesting with Bolt is the balance sheet. The company, with a market cap of $95 - $100 million, has only $4 million in total liablities (as of 3/31/09). For the same period, cash was $24 million and total assets were $68 million. That is impressive.

Bolt is a developer and manufacturer of marine based oilfield services equipment. As we all know, this industry is taking a hit b/c of the decline in oil (and subsequently, oil exploration). Yet, the company is still profitable and earning close to $3 million per quarter.

I am not sure how much the decline in energy prices will impact this company. However, I do find this stock compelling simply based on the numbers.

I believe this is an interesting stock to keep on your radar, especially if oil prices keep rising. Please be aware that BOLT is a small cap stock and may be subject to volatility.

Disclosure - I bought 100 shares this morning to keep on my radar.

Comments

[Respirate:]

Good catch, Dan. I wouldn't worry about the price being up, as IMO it's still a buy. Bolt not only has almost no debt, but they're a growing, efficient producer with stronger margins than their peers, impressively maintained during the current weak oil market.

Yesterday's move was a bounce from last week's tumble on flat qtr earnings. I doubt the shares will return to the $6-8 range of a few weeks ago unless marine E&P collapses. If it does return to $8.50-ish I'm in for more shares.

--R
discl: Long BOLT

May 19 06:18 AM

[Dan Braem:]

Respirate - Thanks for the comments. We all know it is a tougher environment this year for E&P than the last couple of years. But you are right - I haven't found a better balance sheet (on a relative basis), especially for a company still making money. It is one of the stocks where you hope for a pullback.

Sometimes I hate that expression - "wait for a pullback" - simply b/c my thoughts are "why didn't you buy it before". In my case, I simply wasn't following the stock.

May 19 09:07 AM

[goredbull:]

Been following for 2 years. Great mgt with real focus. Key to long term growth is the growth in seismc vessels. Age of mgt team make this look like a potential target for larger firm. Best balance sheet in industry.

Jun 04 10:23 AM