Dynamic Materials' Hidden Play

It's not often that you can spot a small-capitalization company that has the potential to be a big-cap one: Dynamic Materials (BOOM - commentary - Cramer's Take).

I feel as though I lucked into this one, because I had no idea how the metal-cladding business -- taking weaker metals and cladding them with strong metals by blasting them together -- is truly proprietary and necessary to lots of industries, not just aerospace, but particularly the refining and exploration of oil.

I was truly encouraged by the savvy of the company's CEO, Yvon Cariou, and the international basis of its business. (I interviewed Cariou on my "Mad Money" TV show Tuesday night. To see the clip, click here.)

In short, Dynamic Materials may be a hidden energy play.

More important it is a $383 million company that has the potential for explosive earnings and only two analysts covering it. The company has roughly 11 million shares outstanding. For some nutty reason it has some 2 million shares short -- probably because it is perceived as being cyclical.

I think it is more of a secular story because the fabrication of metal for refineries -- one of the single-most-starved industries in the world now being fed -- could be a long-term positive for company.

Watch BOOM; the market cap is too small for its task.

Just perfect.

At the time of publication, Cramer had no positions in stocks mentioned.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Dynamic Materials to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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At the time of publication, Cramer had no positions in stocks mentioned.

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