How to Buy DMC Global Inc. (BOOM) Stock

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Contributor, Benzinga
June 7, 2021
$16.87
-0.66[-3.76%]
Last update: 4:00PM (Delayed 15-Minutes)
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Open17.710Close16.870
Vol / Avg.123.567K / 253.366KMkt Cap337.101M
Day Range16.860 - 17.97852 Wk Range14.890 - 27.160

DMC Global Inc. (NASDAQ: BOOM) provides technical products to an assortment of industries such as infrastructure and energy. Founded in 1965, the Colorado-based company has sparked interest among traders as Wall Street believes the company is a potential beneficiary of President Biden’s infrastructure plan.

Considering an investment in DMC Global? Learn how to buy shares in this relevant company right now.

How to Buy DMC Global (BOOM) Stock

DMC Global (NASDAQ: BOOM) is listed on the Nasdaq exchange. As a result, you will be able to buy shares the same way as for most other publicly listed companies. When looking to buy a stock, be sure to follow the general four step process.

  1. Pick a brokerage.

    The first thing you need to do before you can own shares of DMC Global is to pick a brokerage to use. Lucky for you, most brokerage companies have eliminated commission fees for trading. However, there are countless other factors that distinguish brokerages from one another.

    To start your search, define your trading goals and investing timeline. Use that knowledge to select the best brokerage for you. Your considerations may include leverage offered, paper trading functionality and bonus perks for signing up.

  2. Decide how many shares you want.

    Next, you need to decide how many shares of DMC Global you want to buy. When deciding on this amount, take into account your account balance and how much of it you are willing to risk. It is never a good idea to invest more than a few percent of your net worth into any one given stock.

    One you decide how many shares to buy, you can start looking for a good entry point into your position. Don’t be too quick to jump into the stock and consider waiting to buy your shares on a dip.

  3. Choose your order type.

    Once you know how many shares you want to buy, you need to choose which order type to use. There are countless different order types available to choose from, so it is best practice to first define your potential risk and reward.

    Perhaps the most common order type is a market order. A market order gets filled instantaneously at the National Best Bid and Offer (NBBO) price. In contrast, a limit order will not be filled until the shares can be purchased for your pre-set price or better. Consider using a limit order when buying a volatile stock or a stock with a low-float.

  4. Execute your trade. 

    The last thing you need to do is simply execute your trade. All you need to do is input your order instruction and hit the ‘buy’ button. Once you do this, just sit back and wait for your broker to fill your order. Once this happens, you will see your shares of BOOM show up in your brokerage account.

DMC Global Stock History

DMC Global Inc. was founded back in 1971 under the name of E.F. Industries, Inc. The company rebranded under the name of Explosive Fabricators, Inc. and ultimately went public in 1977. 

In 1994, the company once again changed its name to Dynamic Materials Corporation, which was shortened in 2016 to DMC Global Inc. Over the years, the DMC Global (NASDAQ: BOOM) has seen steady growth, with the company’s stock reaching an all time high of just over $76 in June 2019.

boom
1 year overview of BOOM from Benzinga Pro

DMC Global Restrictions for Retail Investors

Since DMC Global is listed on a major stock exchange, there are no restrictions for retail investors.

Pros and Cons of BOOM

As 2021 continues to progress, there are a few pros to buying shares of DMC Global. 

  • Revenue growth: DMC Global has seen its revenue grow at nearly a 20% compounded rate over the last 5 years. As a result, the stock has gone for under $5 in 2016 to its current price of nearly $60. If this growth can continue, watch for further price increases.
  • Infrastructure: One of the markets served by DMC Global is the infrastructure space. President Biden’s recently proposed infrastructure could be another positive catalyst for the stock.

While DMC Global Inc. has been a hot stock of late, there are still some downside risks present. 

  • Too much growth?: DMC Global has seen its stock price increase by more than 800% over the last 5 years. One would think that at some point there would need to be a correction.
  •  Market correction: Another always present risk is the threat of an overall mark correction. Markets are at all-time highs, so one needs to be aware of any potential change in sentiment.

BOOM or Bust?

DMC Global Inc. (NASDAQ: BOOM) has seen astronomical growth over the past 5 years. On top of this, DMC Global is a storied company with a 50-year history of operating out of Colorado. While any stock up over 800% has the risk of going bust, the solid fundamentals underlying DMC Global Inc. may suggest otherwise.