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$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
"Live Free Or Die" is the official motto of the state of New Hampshire. The famous Live Free Or Die motto is a lot different than most state mottos in the US that tend to be more tame and less shocking than that of New Hamshire's motto.
The Live Free Or Die motto was adopted by the state of New Hampshire in 1945.
So how did such a strong state motto like "Live Free Or Die" come to such a small state like NH? The phrase was taken from a toast on July 31, 1809 which was written by General John Stark, a famous New Hampshire soldier of the American Revolutionary War. General John Stark was invited to an anniversary reunion for the battle of Bennington but he became ill just prior to the reunion and could not attend. In his absence, he sent his toast in a note. Part of that toast read "Live free or die: Death is not the worst of evils."
In 1971 the state of New Hampshire began displaying the Live Free Or Die motto on its' license plates. Somehow in the last season of the Sopranos, fat Vito went to New Hampshire and saw the license plate. He ended crashing into some guy and then he shot him. Later on Vito got killed. I guess that’s what Live Free or Die means…if you are on the Sopranos, you probably died.
Today I bought Dycom (DY) at 77.80. I will sell it in 4 to 6 weeks at 89.72. Here’s why I like DY:
For starters, it has a rocking chart:
DY stock is up 140% in the last 12 months. That’s like 12% per month. Not a bad little way to make money is it? What’s causing all of this?
Dycom Industries Inc. is a specialty contracting firm that operates in the telecom industry providing services such as engineering, construction, maintenance and installation services for telecommunications providers, underground facility locators, and other services to electric and gas utilities.
You may remember the internet back in the early 90’s. $$$MR. MARKET$$$ was using Prodigy and dialup to tell the world about his stock picking prowess. Then he went to the AOL message boards, with dial up but the phone was always busy. Everyone wanted fast internet. Dial up went away. People still want faster internet everywhere. That’s where Dycom comes in. Dycom has almost doubled its revenues due to increasing contracts and the overwhelming demand for high-speed Internet.
Actually, Dycom has 3 different business operations in which it generates revenue but 90% of the revenue comes from telecom. Recently, Dycom made a ton of money installing 1-Gigabyte wireline networks. This is all because of the stupid young people running around with their smart phones in their hands taking selfies and posting them on Facebook. Dycom Industries has been faring well driven by the increased demand for network bandwidth and mobile broadband, given the proliferation of smartphones. The company continues to win lucrative contracts as well as renew existing ones, with solid backlog levels that promise high growth.
Everyone wants fast internet, and Dycom is happy to comply as long as they get paid. As telecommunication networks compete for customers through the improvement of the performance of existing networks, and also by adding new networks, the demand for Dycom’s services continues to escalate. Not only that, but once the networks are installed, Dycom will get the maintenance service contracts for all of these buildouts. Dycom’s biggest customers are AT&T , CenturyLink , Comcast, Verizon and Time Warner. Recognize any of these names? They are all talking about increasing their offered speeds to 1 gigabit per second and above. Most home internet users do not have 1 gigabyte. In fact most homes have internet speeds only 1/20th as fast. Zoom zoom zoom goes the internet. Up up up goes DY’s stock price.
Dycom has billions of dollars in backlog contracts to feast on for the next few years…times will indeed be good. Also the crazy federal government spending benefitted DY enormously. The Connect America Fund is a six-year program that will provide $1.675 billion in funding per year to expand and maintain the addition of broadband deployments in rural areas of the United States. Dycom acquired companies which will benefit from this irresponsible government spending. Hey, if I have to pay taxes, I might as well get some of my money back by owning stock in a company which is benefitting from this tax spending.
Competition? Don’t make me laugh. Dycom is bigger than any telecom field-service company and will actually grow its share through this unprecedented spending cycle. All of the old copper wires are being ripped out and melted, and fiber optic lines are taking their place. You know how you like to watch TV on the internet? Well you couldn’t do that with copper wires. Dycom is the company that does the digging, installation and maintenance of lines and equipment. In fact, telecommunications equipment and services spending in the U.S. will rise 10% in the next two years. That’s almost $200 billion dollars of spending. ANAL-ysts see Dycom's annual revenue climbing nearly 50% during this period to $2.7 billion, up from $1.8 billion in 2014.
Dycom is really a holding company for over 40 separate regional companies across America and Canada. They have been acquiring these little regional companies like Pacman. Naturally this acquisitive growth and squeegeeing out of expenses have been reflected in Dycom’s earnings. In the most recent quarter reported last month, earnings per share rose 102% vs. the same quarter a year earlier to 97 cents, beating ANAL-yst estimates by 14 cents a share. It was the third quarter in a row that DY smashed the ANAL-yst numbers.
Contract revenues of $578.5 million for the quarter ended July 25, 2015, compared to $482.1 million for the quarter ended July 26, 2014. Contract revenues for the quarter ended July 25, 2015 grew 18.2% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and prior year quarter. Total revenues from acquired businesses were $11.8 million for the quarter ended July 25, 2015, compared to $2.8 million for the quarter ended July 26, 2014.
Adjusted EBITDA – Non-GAAP of $88.5 million, or 15.3% of revenue, for the quarter ended July 25, 2015, compared to $57.5 million, or 11.9% of revenue, for the quarter ended July 26, 2014.
Net income of $33.8 million, or $0.97 per common share diluted, for the quarter ended July 25, 2015, compared to $16.5 million, or $0.47 per common share diluted, for the quarter ended July 26, 2014. On a Non-GAAP basis, net income was $16.9 million, or $0.48 per common share diluted, for the quarter ended July 26, 2014.
The Company also announced its outlook for the first quarter of fiscal 2016. The Company currently expects total revenue for the first quarter of fiscal 2016 to range from $615 million to $635 million and diluted earnings per share to range from $0.96 to $1.04. Profit has risen at a triple-digit pace the past two quarters, while sales growth has picked up for three straight quarters in part due to acquisitions.
When it comes to these installations, price isn’t important, it’s service and work quality. Once Dycom gets their Master Service Agreements in place for years, they very seldom get bid out. That’s recurring revenue and fat margins for years to come. The rebirth of housing starts will also amplify the demand that DY already has. You want to put in a new basketball hoop and backboard on a pole? You better call Dycom so you don’t hit a gas or electric line. They will come out. Ka ching.
DY outperforms its peers with a relatively high operating performance and asset efficiency. Compared with its peers chosen, DY has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations. The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
DY has grown its revenues each and every year from 2010 ($989 million) to fiscal 2015 ($2.0 billion). That’s a double in 5 years. Over the last 3 years, EPS has gone from $1.04/share to $2.41 per share. ANAL-ysts are expecting $3.32 per share in 2016. $$$MR. MARKET$$$ projects earnings of $3.78 in 2016 which, at a PE of 32, will get you a stock price of 32 x $3.78 = $120.96. That’s right, $120.96. This of course is well past my sell target, so what it means is yet another winner.
What does the boss of Dycom think?
Dycom CEO Steven Nielsen told analysts on the Q4 earnings call: "It is increasingly likely that in retrospect, calendar year 2015 will be clearly seen as the foundational year for a massive investment cycle in wireline networks, reminiscent of and perhaps more meaningful than one that occurred in the 1990s," when fiber optic networks first took off.
"I think our success as well as others' in the industry will attract competition, but we've seen that before, and we're not concerned. As long as we do a good job for our customers, there will be plenty of opportunities."
“Our outstanding performance this entire fiscal year occurred within an industry environment where our customers continued to announce surprisingly positive news about their future plans. These plans augur well for increased opportunities and encourage us to confidently contemplate the possibility of improved prospects even as we're currently producing very strong results.”
All I can say is I hope I don’t “DY” laughing when I take the profits I make on this company to the bank. I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
"Live Free Or Die" is the official motto of the state of New Hampshire. The famous Live Free Or Die motto is a lot different than most state mottos in the US that tend to be more tame and less shocking than that of New Hamshire's motto.
The Live Free Or Die motto was adopted by the state of New Hampshire in 1945.
So how did such a strong state motto like "Live Free Or Die" come to such a small state like NH? The phrase was taken from a toast on July 31, 1809 which was written by General John Stark, a famous New Hampshire soldier of the American Revolutionary War. General John Stark was invited to an anniversary reunion for the battle of Bennington but he became ill just prior to the reunion and could not attend. In his absence, he sent his toast in a note. Part of that toast read "Live free or die: Death is not the worst of evils."
In 1971 the state of New Hampshire began displaying the Live Free Or Die motto on its' license plates. Somehow in the last season of the Sopranos, fat Vito went to New Hampshire and saw the license plate. He ended crashing into some guy and then he shot him. Later on Vito got killed. I guess that’s what Live Free or Die means…if you are on the Sopranos, you probably died.
Today I bought Dycom (DY) at 77.80. I will sell it in 4 to 6 weeks at 89.72. Here’s why I like DY:
For starters, it has a rocking chart:
DY stock is up 140% in the last 12 months. That’s like 12% per month. Not a bad little way to make money is it? What’s causing all of this?
Dycom Industries Inc. is a specialty contracting firm that operates in the telecom industry providing services such as engineering, construction, maintenance and installation services for telecommunications providers, underground facility locators, and other services to electric and gas utilities.
You may remember the internet back in the early 90’s. $$$MR. MARKET$$$ was using Prodigy and dialup to tell the world about his stock picking prowess. Then he went to the AOL message boards, with dial up but the phone was always busy. Everyone wanted fast internet. Dial up went away. People still want faster internet everywhere. That’s where Dycom comes in. Dycom has almost doubled its revenues due to increasing contracts and the overwhelming demand for high-speed Internet.
Actually, Dycom has 3 different business operations in which it generates revenue but 90% of the revenue comes from telecom. Recently, Dycom made a ton of money installing 1-Gigabyte wireline networks. This is all because of the stupid young people running around with their smart phones in their hands taking selfies and posting them on Facebook. Dycom Industries has been faring well driven by the increased demand for network bandwidth and mobile broadband, given the proliferation of smartphones. The company continues to win lucrative contracts as well as renew existing ones, with solid backlog levels that promise high growth.
Everyone wants fast internet, and Dycom is happy to comply as long as they get paid. As telecommunication networks compete for customers through the improvement of the performance of existing networks, and also by adding new networks, the demand for Dycom’s services continues to escalate. Not only that, but once the networks are installed, Dycom will get the maintenance service contracts for all of these buildouts. Dycom’s biggest customers are AT&T , CenturyLink , Comcast, Verizon and Time Warner. Recognize any of these names? They are all talking about increasing their offered speeds to 1 gigabit per second and above. Most home internet users do not have 1 gigabyte. In fact most homes have internet speeds only 1/20th as fast. Zoom zoom zoom goes the internet. Up up up goes DY’s stock price.
Dycom has billions of dollars in backlog contracts to feast on for the next few years…times will indeed be good. Also the crazy federal government spending benefitted DY enormously. The Connect America Fund is a six-year program that will provide $1.675 billion in funding per year to expand and maintain the addition of broadband deployments in rural areas of the United States. Dycom acquired companies which will benefit from this irresponsible government spending. Hey, if I have to pay taxes, I might as well get some of my money back by owning stock in a company which is benefitting from this tax spending.
Competition? Don’t make me laugh. Dycom is bigger than any telecom field-service company and will actually grow its share through this unprecedented spending cycle. All of the old copper wires are being ripped out and melted, and fiber optic lines are taking their place. You know how you like to watch TV on the internet? Well you couldn’t do that with copper wires. Dycom is the company that does the digging, installation and maintenance of lines and equipment. In fact, telecommunications equipment and services spending in the U.S. will rise 10% in the next two years. That’s almost $200 billion dollars of spending. ANAL-ysts see Dycom's annual revenue climbing nearly 50% during this period to $2.7 billion, up from $1.8 billion in 2014.
Dycom is really a holding company for over 40 separate regional companies across America and Canada. They have been acquiring these little regional companies like Pacman. Naturally this acquisitive growth and squeegeeing out of expenses have been reflected in Dycom’s earnings. In the most recent quarter reported last month, earnings per share rose 102% vs. the same quarter a year earlier to 97 cents, beating ANAL-yst estimates by 14 cents a share. It was the third quarter in a row that DY smashed the ANAL-yst numbers.
Contract revenues of $578.5 million for the quarter ended July 25, 2015, compared to $482.1 million for the quarter ended July 26, 2014. Contract revenues for the quarter ended July 25, 2015 grew 18.2% on an organic basis after excluding revenues from acquired businesses that were not owned for the full period in both the current and prior year quarter. Total revenues from acquired businesses were $11.8 million for the quarter ended July 25, 2015, compared to $2.8 million for the quarter ended July 26, 2014.
Adjusted EBITDA – Non-GAAP of $88.5 million, or 15.3% of revenue, for the quarter ended July 25, 2015, compared to $57.5 million, or 11.9% of revenue, for the quarter ended July 26, 2014.
Net income of $33.8 million, or $0.97 per common share diluted, for the quarter ended July 25, 2015, compared to $16.5 million, or $0.47 per common share diluted, for the quarter ended July 26, 2014. On a Non-GAAP basis, net income was $16.9 million, or $0.48 per common share diluted, for the quarter ended July 26, 2014.
The Company also announced its outlook for the first quarter of fiscal 2016. The Company currently expects total revenue for the first quarter of fiscal 2016 to range from $615 million to $635 million and diluted earnings per share to range from $0.96 to $1.04. Profit has risen at a triple-digit pace the past two quarters, while sales growth has picked up for three straight quarters in part due to acquisitions.
When it comes to these installations, price isn’t important, it’s service and work quality. Once Dycom gets their Master Service Agreements in place for years, they very seldom get bid out. That’s recurring revenue and fat margins for years to come. The rebirth of housing starts will also amplify the demand that DY already has. You want to put in a new basketball hoop and backboard on a pole? You better call Dycom so you don’t hit a gas or electric line. They will come out. Ka ching.
DY outperforms its peers with a relatively high operating performance and asset efficiency. Compared with its peers chosen, DY has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations. The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
DY has grown its revenues each and every year from 2010 ($989 million) to fiscal 2015 ($2.0 billion). That’s a double in 5 years. Over the last 3 years, EPS has gone from $1.04/share to $2.41 per share. ANAL-ysts are expecting $3.32 per share in 2016. $$$MR. MARKET$$$ projects earnings of $3.78 in 2016 which, at a PE of 32, will get you a stock price of 32 x $3.78 = $120.96. That’s right, $120.96. This of course is well past my sell target, so what it means is yet another winner.
What does the boss of Dycom think?
Dycom CEO Steven Nielsen told analysts on the Q4 earnings call: "It is increasingly likely that in retrospect, calendar year 2015 will be clearly seen as the foundational year for a massive investment cycle in wireline networks, reminiscent of and perhaps more meaningful than one that occurred in the 1990s," when fiber optic networks first took off.
"I think our success as well as others' in the industry will attract competition, but we've seen that before, and we're not concerned. As long as we do a good job for our customers, there will be plenty of opportunities."
“Our outstanding performance this entire fiscal year occurred within an industry environment where our customers continued to announce surprisingly positive news about their future plans. These plans augur well for increased opportunities and encourage us to confidently contemplate the possibility of improved prospects even as we're currently producing very strong results.”
All I can say is I hope I don’t “DY” laughing when I take the profits I make on this company to the bank. I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
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