In our new feature, "Small-Cap Corner," we'll be taking a look
at both popular names and hidden gems from the small-cap and
micro-cap universes. Today, we're starting with a micro-cap play
from the oil services arena, a group dominated by large-caps such
as Schlumberger (NYSE:
) and Halliburton (NYSE:
), the world's two largest providers of oilfield services, and
National Oilwell Varco (NYSE:
), just to name a few.
Today's featured stock is Bolt Technology (Nasdaq:
), which has a market cap of $110 million, and it should be noted
this is not some fly-by-night, pump-and-dump energy stock that
one is going to get 500 emails about. As you can tell, Bolt is
listed on the Nasdaq and the firm has been in business since
Among Bolt's superlatives are the fact that the company was
profitable in its fiscal second and third quarters. In the third
quarter, which Bolt reported at the end of April, the company
said revenue surged 54% while net income climbed 39%. That's
after Q2 gains of over 40% and 15%, respectively.
Bolt's balance sheet is sturdy enough that the company
initiated a quarterly dividend policy in February. The stock
currently yields almost 1.6% and while that may not sound like
much, it's more than double NOV's yield and well above
Halliburton's yield as well. Last year, Bolt paid a special
dividend of $1 per share.
The cautionary tale is that while Bolt has recently
outperformed its larger oil services peers, the group at large
has been under attack as investors have reduced risk across the
board. In the past month, the Market Vectors Oil Services ETF
) is off 7%, which compares to a 12% slide for Bolt, but over the
past three months and year-to-date, Bolt has been the better
If Bolt can hold support at $12, the stock makes for an ideal
speculative play on an oil services sector rebound in the back
half of 2012.
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