Koil Energy Solutions Inc. (KLNG): jdsgungho, about the current share price...

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Re: jdsgungho post# 21030

Sunday, 09/09/2007 1:06:27 AM

Sunday, September 09, 2007 1:06:27 AM

jdsgungho, about the current share price and the value it represents, not sure if you saw this yet but dahlman rose raised their revenue targets from 33.27M to 47.4M on DPDW...

http://finance.yahoo.com/q/ae?s=DPDW.OB

in my calcs from an earlier post i had been boosting their 08 targets by 10%, and now -- let's be clear -- after the Q2 filing came out, dahlman rose increased their own numbers by 42.5%. check here for my original figures, based on their previous revenue target:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=22364620

now... here's the fun part: let's do this math again with the new numbers:

$9.69M for mako only in 2008... that's taking their 2006 revenues and increasing them by only 50% over 16 months, which seems very modest. okay, fine. onward...

then add $47.4M for DPDW's core + ewave (DR's own estimates)

this makes the total for 2008, not including any other subsidiaries they add, $57.09M X 23% margins = $13.13M net profits/67.1M shares OS = ~.20 eps X 25 pe ratio = $4.89/share, with a 30 pe ratio we get $5.87/share.

if the multiples seem a bit high, let's remember they could add at least two more subsidiaries in 2008, possibly even 3 of them. my calcs take none of this into account. also, any additional debt can be more than offset by revenues estimates that are conservative for mako: 50% annual growth seems like a slam dunk for mako in all of 2008, especially given the synergies DPDW has demonstrated with electrowave. jmho..!

so... approximately $6/share for DPDW by 2008..? seems easy enough to me. does this make the current price look reasonable?