Koil Energy Solutions Inc. (KLNG)

[spec machine]

With the declining revenues and the shrinking backlog providing almost all of the cash flow, it's not long till DPDW implodes from lack of cash and credit

Like a true novice, Smith blundered by stating in the last conf call that nearly ALL of the revenue last quarter was backlog burn (Sales/new orders near ZERO??)

Smith has killed the company and its future prospects by his mismanagement of company finances and his TOTAL cluelessness about what investors think about Deep Down Inc and his performance as CEO

The "Smith-friendly" BOD has driven the final nail in the coffin by not replacing him

but at least they told you

they called it a deliberate decision to retain certain individuals because of (a few qualitative factors)

that's the only wiggle room they have to NOT terminate Smith for a whole bunch of valid reasons that are easily quantifiable

in other words - they are avoiding professional liability for their responsibility to the shareholders in making decisions in the best interest of shareholder value

Interestingly, Smith could still save the company from certain imminent collapse if he did 2 very simple things

One of them he might do, but by itself wouldn't do it

The other, I'm pretty sure he can't figure out by himself

It would be a genius move, but he has blinders on and will almost certainly drive all of the stock, including his shares, to zero

JMHO

spec

[Drugdoctor]

Next we will hear they are moving into shale oil - deep down in the rock formations, lol

[puffadder]

Hard to believe these guys still can't get this moving

[CollinsIR]

From what I gather, much of what DPDW does comes in the later years of deep see development - when you are actually moving into production. So there is often a lag in when the spending kicks in for them, however they are working to find more maintenance and upgrade work on existing projects - and services. The guidance for 2018 is to approximate 2017 and then to grow in 2019.

[Trueheart]

That was a hilarious response to the question about acquisitions, Fritz.

Perhaps Ron and the Boys can try getting into flotation???

Trueheart

[Fred Kadiddlehopper]

Acquistions! Great idea! We haven't tried that yet!
Good luck!
-Fritz

[PennyP1cker]

It seems like all of the oil service companies have been increasing revenues. Companies such as WFT and SSOF have been growing revenues the past six months or more. But then DPDW has been struggling to grow and maintain revenues for quite a while now. Hopefully DPDW can start growing again as soon as possible even if that means an acquisition or two.

[sidedraft]

What happened to the iBox, seems to have vanished?

[jdsgungho]

The cat must have Collins tongue

[spec machine]

Yep, it certainly was blatant

and not like there isn't a whole series of excursions outside their stated business that literally sucked the life out of the business and cratered the stock

BoyRon still had plenty of time for fishing apparently



there's the fruits of "spending restraint"

between the $400-500k on the 32' Donzi and the wasted money spent on developing StaySys/StaPut/whatever and "testing" for a product that they will never sell a single unit... that's gotta be a few $M

BTW, the first StaySys yacht was lost in the repo on the collapse of SSI back when the Smith, Butlar, Chamberlain trio were sued (and lost) for defaulting on loans related to the attempted acquisition of Ship&Sail by DDI

so there is another $M or more

no skin off their ass though, IIRC the judgement was $500k each and I doubt they will ever pay

can you say trail of breadcrumbs?? With these guys it was a trail of entire loaves

SEC sure didn't do their job on this one, IMO

A sharp attorney could skewer these guys without a doubt

spec

[Fred Kadiddlehopper]

I still scratch my head in wonderment that a sharp plaintiffs' attorney specializing in this type of fraud and abuse has not sniffed out this opportunity.
-Fritz

[spec machine]

Those onerous votes allowed management to give itself huge bonuses year after year, good years and bad,

Which where the "good years"?

I think you actually meant the years that would have been at least in the black if not for the self-serving mgmt

As far as company performance there were only BAD and HORRIBLE years for shareholders

Smith and Butler didn't seem bothered at all by the wasteful spending on play toys like the submarine and the petting zoo as they drove the stock value straight down the toilet

Once Butler got all the salary he could get and as much of Smith as he could stand, Butler cashed in every share he had awarded himself and bailed out

Now, DDI is suffering from an IQ deficit ...

... in addition to all of the other ailments like

-inability to focus on ANY market sector (what will BoyRon do now? flying submarines, helium filled pool toys, magical fishing lures, patented non-round car tires)

-inability to even MAINTAIN their SMALL footprint in GOM O&G services

and WHAT WAS THAT PANAMA THING???

a million bucks (IIRC) of shareholder money dissappears in Central America without any rational explanation

I mean really????, it was something like "we were opening an office there but decided not to"

REALLY???

Bullshit doesn't cost $1M

spec

[Trueheart]

Management and IR can begin on the road to salvation by giving the company back to the shareholders, you know, get rid of those By-laws and Articles that gave absolute control of the company to management so many years back.

Those onerous votes allowed management to give itself huge bonuses year after year, good years and bad, and it gave them the ability to venture into anything they wanted to without regard to shareholder value or to core business.

They voted it in, now they can vote it out.

Waddaysay?

Trueheart

[Fred Kadiddlehopper]

Hiring IR guys to come on here is a sure sign that a new stock offering is in the works.
-Fritz

[spec machine]

sometimes a new leader is required to take the difficult steps in cost reductions

Are you (and the IR team) saying this will happen??

If, by some miracle or divine intervention, possibly even regulatory or judicial intervention, that ever happens ...

... then DDI might have a chance of surviving

But the harsh truth is ..

They lost big money on big contracts before

They lost money on small contracts before

They lost money when the sector was HOT

They lost money when the sector was down

Now the GOM is HOT and they can't compete and hold onto the TINY sliver of the market that they had for years in their own back yard

So now you expect shareholders to believe they landed a high-margin order in a frontier area where infrastructure is minimal?

Little scraps of work that the big companies didn't bother with? Group them together and $4M sounds big, but it's not.

My predictions

- massive dilution within 6 months, probably sooner

- no change in the actual "leadership" of the company or control of the BOD

- repeated delays and a loss on the latest group of orders

- continued drop in "backlog" as revenues continue to lag indicating a lack of new orders coming in

Any challengers wanna make a bet?

spec

[spec machine]

I've seen ABSOLUTELY NO DISCIPLINE in wasteful spending after they spent YEARS losing money while spending foolishly

LOL, they have been preaching cost reductions for several years now and Butler's departure is the only significant cut so far

Of course that cut in future payroll expense came at a great cost to shareholders in the short term with the golden parachute he had given to himself

Deep Down Inc has a huge black cloud of historical data hanging over them and it's all from their own doing

I think the only way they can pump this one up to issue a bunch of dilution is to give free fishing trips on DDI's spiffy new 32' triple engine boat

It sure is a beauty, I wish I had a half million or more to buy one myself

Maybe Collins IR can post a few pictures of it and explain how that is a necessary expense in DDI's business

afterall, it was purchased long after DDI claimed they were in "cut to a lean and mean" status

spec

A bonus puzzle for IR - How do you tell when Ron is lying?

[Fred Kadiddlehopper]

Nice try. Until you get an independent BOD that can control the anti-shareholder self-dealing proclivities of the current management, all I can say is: thanks, but no thanks.
-Fritz

[CollinsIR]

DPDW lands $4m in Latin America subsea Oil & Gas Equip Installs

Recent price: $0.88
Shares Out: 13.4M
Market Cap: $12M
Cash/Cash Equiv.: $5.0M / $0.37 per share
Book Value: $21.8M / $1.63 per share
2017 Revenue: $19.5M

Today's Contract Release

While it's clear on this board that there are some critical sentiments regarding management, we are convinced that the elevation of Charles Njuguna to CFO, and the cost reduction measures he has enacted, demonstrate the Company's embracing of a new financial sheriff in town with respect to fiscal priorities and ROI. This is a natural evolution of an entrepreneurially-led company to build out the operational disciplines that are necessary to take the business and the valuation to the next level - and sometimes a new leader is required to take the difficult steps in cost reductions.

Yes - IR talk is cheap - so let's give DPDW a little time and room to execute on lower costs and their revenue growth initiative. We are newly on board as investor relations counsel and reachable via [e-mail] or at the office 212 924 9800 - Chris Eddy, Tanya Kamatu and myself - David Collins manage the IR engagement for DPDW - and we've been in the IR space for several decades.

[spec machine]

Hey there TH, I've not paid much attention except to check back and see if DDI got itself in gear to be a business

Still no progress on that but I see that they hired a new PR firm so they're trying to sell some new stock to someone ... soon

On all of his previous conf calls Ron has always been bubbling over with giggly enthusiasm for the "near future" ... followed by huge losses

Revenues continue to sag, losses continue to drain shareholder value

Now he is only "cautiously optimistic" ????

Look at the revenue vs reduction in backlog, almost all of the revenue was previous orders!!!

On his Q3 call Ron proudly stated there were practically no new orders and the revenue was almost all from backlog - he was so proud to finally get some of the backlog done... then he follows up with - there were practically no new orders .... DOH!

Now he's signalling throwing in the towel on the big contracts from the supermajors (which I think means DDI no longer qualifies to bid on the big jobs)

Instead he's going to chase little scrap jobs way out in fringe exploration countries???

Classic Ron

IMO
spec

[spec machine]

Ronny boy still doesn't get it

Shareholders didn't invest in DPDW to fund Ron's favorite whimsical folly of the month



You can't even get your CORE business volume up enough to cover your spending and bloated salaries

yet you wander off into ...

X-prize (a million in 2017 alone)

treasure hunting fabrication gig that didn't get paid in full for (and legal fees to try to get paid) a custom fabricated tool and ROV rental

StaPut dynamic positioning system AND the lovely demonstration vessel(s) - never sold a single unit but I bet the fishing was a blast

That submarine thing and a dozen other wacky scientist things like paying the legal and prep work for all of the useless patents - a patented modular atoll???? seriously???

Flotation Technologies - in business for decades as a successful business, DDI acquires it and pours cash into it and drove it into the gutter then writes off millions in losses

Couldn't keep Mako ROV rentals afloat and after bleeding cash for years into maintenance and repair of the equipment salvaged from Mako's implosion ... now you're excited about possibly getting into pipe trenching equipment????

The Monster Mouth movie?? did it ever get produced???

and who can forget the stunning financial arrangements related to the Cleveland TX property "DDI Ranch" dubbed "Ron's petting zoo", complete with Texas shaped pool and livestock

ALL WHILE LOSING MONEY EVERY YEAR

Throw in the "Ship and Sail" failed acquisition attempt and the Panama scandal and I think everyone can see the writing on the wall

Paying %50 of book for DPDW is like paying $50 for Ron's $100 lunch

IMO
spec

[CollinsIR]

Microcap Value: $DPDW Sells for 0.5x Book w/ $5M in cash

Deep Down 2017 Results and Call

DPDW Reports 2017 Results & Hosts Call Thu, March 29th at 10am ET

[Trueheart]

Hey, Spec. Long time no see.

Thanks for finding the info that you do so well. Butler may have left but he was part of the regime, making sure he had plenty of dough on his exit.

The stock above their salaries they rewarded themselves with over the years regardless of company performance should have been shared with shareholders or used to build the company, in my opinion.

I look in occasionally when I'm prompted sufficiently as I'm looking at the 92% I am down.

Trueheart

[spec machine]

The Chairman of the Board of Directors leaves but not before he cleverly tricks Ronny boy into agreeing to a share buyback ....

So he can SELL EVERY SHARE OF DPDW that he owns (including accelerated vesting of his restricted shares) on his way out the door !!!

That must have been quite a blowup at the last BOD meeting

It is apparent that Butler didn't retire - HE QUIT and walked out, leaving Ron clueless

There is no other explanation that accounts for cashing out every share

It seems that Butler has severed his ties to the company for a reason

My guess would be that he sees the end of DPDW coming, with new orders falling off and Ron's continued irresponsible spending on non-producing daydreams

Or possibly there has been an investigation underway regarding the activities of DPDW related to laws and fiduciary responsibilities

The third, and most likely IMO, is that Ronny may be getting ready to print up and (try to) sell a bunch of shares to raise cash

He must if he wants to keep the gravy train rolling

DPDW has insufficient cash to even take on a single large order


There is no WIN possible for shareholders from here, just a race to zero value

IMO

spec

[Trueheart]

Deep Down, making enough money to keep Ron and the Boys in the lifestyle they've become accustomed to.

Using changes in its governing structure, management has virtually eliminated any shareholder participation and input. They gave themselves absolute power to reward themselves for staying in business.

Trueheart

[Trueheart]

At today's closing price my investment is only 94% down.

Ron and the Boys will make that up in 2018.

Go Dip Down!

Trueheart

[HONU]

Haha......true dat. Would be soooo funny if us loyals hadn’t lost our asses cuz of the the managements ineptness.

[jdsgungho]

A storms a brewing
Subsea expenditure – bottoming out in 2017
The bottom of the subsea market is likely still ahead, given the fact that subsea expenditure is relatively late in the cycle. Subsea expenditure (capex and opex) fell from USD 48 billion in 2014 to USD 43 billion in 2015 (Figure 1), a negative growth of 10%. In 2016, the market is forecast to contract by another 16% to USD 36 billion. The market is believed to bottom out next year at USD 31 billion (-14%), before it returns on a growth path from 2018. By 2020, the subsea market is estimated to reach USD 39 billion, and it is forecast to continue to grow into the first half of the 2020’s, surpassing the last high from 2014

[jdsgungho]

To bad Ron isn't more ambitious in his endeavors or the best interest of the shareholders.

The work is out there Mr. Christmas tree

Major oil fields, such as the Ghawar Field in Saudi Arabia, are running out. These fields represent millions of barrels in production that will need to be replaced.

Deepwater oil has recently become economically and technically feasible. As a result, deepwater production is expected to grow by 250% from now until 2030.

I recommend investors look to offshore drillers such as Noble Corporation and Ensco to take advantage of the growing deepwater markets.

[jdsgungho]

Now that was funny

[Trueheart]

Butler sold 500,000 shares at $.96 for a handsome payday without buying one share.

Deep Down is the gift that keeps giving...to management.

Trueheart

[Fred Kadiddlehopper]

I hope the Capn' and Little Buddy are floating together on a three hour tour.

[PithicusKong]

Wow...amazing how the previous question remains unanswered.....guess this board is as dead as the company.

[PithicusKong]

Any word on how this company is managing, considering the situation in Houston?

[PithicusKong]

Two truly worthy charities....The Salvation Army and Habitat for Humanity. Imagine the amount of people that could have been fed and housed with the investor losses over the past eight years in this excuse for a company. Hard to believe it's origins from True Health.

[Fred Kadiddlehopper]

Haha, don't be offended, TH. I was just funnin' ya. You are a straight shooter and, as such, you stand out here in the old Wild West iHub. Besides we will forever be bound by DPDW investor brotherhood. (Incidentally, I booked my substantial DPDW losses a few years ago and never felt better when I finally accepted the situation as the fraud that it is and walked away.)
Best of luck to you.
-Fritz

[Trueheart]

Hey, Fritz. Long time no see. Hope all's well with you.

My posts are not about a financial loss, certainly nothing grievous.

I sorta feel as if I'm swooping in, saving Nellie from getting run over by the train, trying to alert newbies to the complications of investing in this company that so far has done little but supplied a handsome steady income to the management.

If you want to give, try the Salvation Army.

Trueheart

[Fred Kadiddlehopper]

Trueheart, I just saw the movie A Ghost Story. It's about suffering a grievous loss and the process of letting go. After a couple of centuries, even the ghost comes to the realization that his love is not coming back and, finally, let's go and moves along. I respectfully suggest that maybe it's time for you to do the same, my friend. DPDW ain't comin' back.
Best Wishes and Good luck
-Fritz

[Trueheart]

Why should anyone care anymore about this company?

They're paid themselves handsomely over the years regardless of performance.

I'm a pretty good writer. If Ron and the Boys paid me enough I'd change my tune, write some great stuff.

Trueheart

[Trueheart]

Thank you, Toddmo. I wish you the best in return.

I'm glad to hear that you made your money back and then some.

Flotation was the thing they went after, only they didn't know what they were buying, didn't know that the company's products were not primarily O&G related and didn't know how to integrate a company that was a thousand miles away. Ultimately it was snatched away from them; surprised them all to hell that the wolf that helped them acquire the company had other plans.

Amateur hour management.

Trueheart

[Trueheart]

The problems with Deep Down are rife. Management has paid itself excessively over the years, even at times when the company made horrible business decisions and lost great amounts of money. Ron and the Boys enjoy absolute control of the company and have disregarded shareholders' concerns.

There are a great number of companies in the O&G sector that are transparent, pay dividends, have histories of growth and are responsible to their shareholders.

Invest your money elsewhere.

Trueheart

[Toddmo1]

To shore up my losses I purchased the stock every time it significantly dropped and finally turned a profit when I sold at 1.22. I too am disappointed in their long term growth strategy and am glad I'm out for now. I'll keep an eye out and if they show a focus on returning to their core fundamentals I'll jump back in. Right now, I'm glad the drama is finally over for me. I've watched your posts for many years and wish you the best!

[Trueheart]

Only nine bucks per share to go and I'll be whole.

Go Ron and Deep Down!!!

Trueheart

[Drugdoctor]

CFO dumping on shareholders... that's never good

[jk21]

lookin good for a pop

[spec machine]

If you are into ethics in the stock market....well there just isn't any.

Certainly not at Deep Down Inc

[PithicusKong]

I don't know....when a half a million people actually listen to that washed up prostitute " Madonna " saying that she has often thought about "blowing up the White House" it doesn't seem to me that the left has any champions of value. Disgraced Debbie Wasserman Shultz from the DNC immediately hired on by Hillary's campaign doesn't show much in the way of ethics....Donna Brazile from Hillary's campaign leaking questions to a debate forum in advance. Ethical....Hmmmm. Regardless, if Trump is good for oil, then I can't see your problem....your are here to make money, are you not. If you are into ethics in the stock market....well there just isn't any.

[Fred Kadiddlehopper]

False promises, outright lies, self dealing. Yes, "Trump Stock" is a good euphemism for this one.
Good luck!
-Fritz

[PithicusKong]

Trump stock!

[brwtrpilot]

who let the bulls out. this stock is now showing up on scans.
Humm

[uncleremus]

Ok now it's closer to fourfold albeit unrealized....either the company buying back a lot of shares or something else? Maybe Aker will buy them out?