Dycom Industries, Inc. (DY)

FreethinkerKW (66.92) Submitted: 11/22/06 9:10 AM : Start Price: $20.80 DY Score: -17.47

In an excellent business down in Florida.

My brother owns a small contracting business in Port St. Lucie which does work similar to Dycom

What is the best part about it all? Burying cables for utilitiies. After hurricanes in 2004 and 2005 chewed up both coasts, utilities were bombarded by requests from municipalities to bury their lines.

The problem is workers must have high skills and must have licensed line workers supervising every crew. These guys aren't easy to find.

FPL is on a big program, for instance, to bury their cables so that hurricanes don't knock them out of business for so long. Yet FPL doesn't have their own crews doing this work. They are contracting outside to people such as Dycom and my brother's small outfit.

Catch the wave. Buy anywhere in the $17.50 to $21.00 region. Hold for a long time. This one is in a very good spot.

Everyone wants to bury cables in Florida now. There is so much work it will take decades to get it done.

p.s. Extra revenue enhancement comes from locating and repairig underline breaks. Very lucrative and specialized part of this business which will grow as more cables go underground.

Report this Post Replies: 0 | Reply