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The Ubika Research Tech Stock Watchlist
| Bolt Technology Corp. ( NASDAQ: BOLT) |
| Company Name: |
Bolt Technology Corp. |
| HQ Location: |
Norwalk, CT |
| Company Website: |
www.bolt-technology.com |
| Shares Outstanding |
8.69 Million |
| Market Cap: |
$79.28 Million |
| 52 Week Range |
$8.09 - $13.40 |
| Share Price (as of July 15, 2010) |
$9.12 |
| Average Daily Volume |
122,000 |
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The Ubika Research Tech Stock Watchlist is very useful to find interesting junior tech stocks. Quite often smallcap tech stocks and penny tech stocks offer very compelling growth and are well-suited for smallcap investment. Tech is good space to find hot Smallcap stocks and penny stock picks, and this segment provides information on such companies.
Share Highlight / 1-Year Stock Chart
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Business Overview
Bolt Technology Corporation develops, manufactures and sells marine seismic data acquisition equipment to the oil and gas exploration & service companies worldwide. It has three operating units: Bolt Technology Corporation (Bolt), develops, manufactures and sells marine seismic energy sources (air guns) and replacement parts, and is called the seismic energy sources segment. The second segment is called underwater cables and connectors and it develops, manufactures and sells underwater cables, connectors, hydrophones, depth and pressure transducers and seismic monitoring systems and this business unit is called A-G Geophysical Products, Inc. (A-G). Real Time Systems Inc. (RTS) offers air gun controllers/synchronizers, data loggers and auxiliary equipment, and is referred to as the seismic energy source controllers segment. + More info
What is interesting?
- Its market cap is just over 2 times the cash in the balance sheet. For a company generating free cash flows, strong balance sheet, and top line growth possibilities the current valuation seems attractive
- Company is considered a worldwide leader in supplying equipments for offshore oilfield services and exploration companies.
- 85% of the company’s revenue (in 2009) comes from outside US. So the Gulf coast drilling ban and BP spill doesn’t have any significant direct impact on the company
- While the BP crisis in Gulf Coast may result in more stringent regulations worldwide, there is no expectation of a significant pause in offshore drilling.
- Strength of oil prices bodes well for BOLT's long term prospects.
- Even though there is a top line revenue reduction as the oil prices fell due to the recession in 2009, the company continues to be a good free cash flow generator.
- In 2009 even with a reduction in top line revenue, the company had a net profit of over $10 Million and free cash flows of over $10 Million
- BOLT continuously invests in Research, its products are well accepted and considered top notch in the industry.
- Company has no debt and is well funded with a cash balance of $36.77 M Dollars (as of March 31, 2010)
- Bolt's strong financial position should facilitate the company’s ability to capitalize on acquisition opportunities.
- The company has relatively low P-E multiple of 14.06 compared to the Industry’s 21.81 and S&P's 20.24.
- Return on Equity at 15.8% for fiscal year 2009
Risks
- Company is narrowly focused and serves only marine seismic exploration industry.
- More than 50 % of the revenue comes from a few customers
- The company’s sales are too dependent on the level of worldwide oil and gas exploration and development activity, which in turn is dependent, primarily, on oil and gas prices.
- High proportion of revenues from foreign sales poses additional risks, including economical, political, exchange rate and other uncertainties.
Note: This Tech stock watchlist is brought to you by SmallCapPower analyst "Raj Ravindran"
Bolt Technology Corp. News
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