Stock Pick- Dycom Ind.

Dycom Inc. recently announced its 4Q result for the quarter ended June 28, 2007 shows significant jump in the profit margin from $10.1 million to $14.3 million (35%) per share, in the prior-year quarter, which according to report is above street estimation.

Contract revenue rose 25 percent to $317.3 million from $253.2 million in the fourth quarter of 2006.

For the full year, the net income doubled to $41.9 million, or $1.03 per share, from $18.2 million, or 43% per share.

Company’s revenue climbed 14 percent to $1.14 billion from $995 million.

Overview
Dycom Industries, Inc. is a leading provider of specialty contracting services. These services are provided throughout the United States and include engineering, construction, maintenance and installation services to telecommunications providers, and other construction and maintenance services to electric utilities and others. Founded in 1969, Dycom has grown to become one of North America’s largest specialty contracting services companies and recently has started to provide services on a limited basis in Canada. Its 30 operating subsidiaries serve customers in 48 states and the District of Columbia. Headquartered in Palm Beach Gardens, Florida, Dycom employs a workforce of approximately 10,000 employees in more than 400 locations.

Stock pick opinion
Looking at the company’s fundamental and overall performance and future growth prospectus, this stock pick clearly seems to have good potential to rise further from its current level, but looking at the present scenario and volatility in the stock market, investors should take more cautions approach before making any investment in this stock. According to me any significant fall in this stock would be an opportunity to buy, or who have bought this stock would keep this stock on hold.

Going through company’s fundamental, profit margin and growth prospectus this company is certainly headed toward to become a mid caps company from small caps, but still I would be little optimistic to hold this stock pick on a very long term basis.

Stock Pick Concern
With the growing apprehension among investor about slowdown in US economy can impact this company’s growth prospectus which might impact the company’s profit.

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