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We've had a nice run. People will take their profits. No worries.
Good luck!
-Fritz
Yes, announced May 29 at 5 PM.
Hope you are right about the price move.
-Fritz
Two more contracts (approx $43.7 million) announced.
Got this from the I-Vill board. Props to them.
http://www.defenselink.mil/contracts/contract.aspx?contractid=3785
Force Protection Industries, Inc., Ladson, S.C., is being awarded a $28,456,471 modification to previously awarded contract (M67854-07-D-5031) Delivery Order #0003 to purchase Mine Resistant Ambush Protected (MRAP) Vehicle Integrated Logistic Support (ILS) Sustainment Parts and Outside the Continental United States (OCONUS) Welders. Work will be performed in Ladson, S.C., and in Operation Iraqi Freedom/Operation Enduring Freedom area’s of responsibilities, and work is expected to be completed October 2009. Contract funds will not expire at the end of the current fiscal year. The Marine Corps Systems Command, Quantico, Va., is the contracting activity.
Force Protection Industries, Inc., Ladson, S.C., is being awarded a $15,220,882 modification to contract (M67854-07-D-5031) Delivery Order #0006 to purchase Mine Resistant Ambush Protected (MRAP) Vehicle Integrated Logistic Support Sustainment Parts and Outside the Continental United States (OCONUS) Field Service Representatives. Work will be performed in Ladson, S.C., and in Operation Iraqi Freedom/Operation Enduring Freedom area’s of responsibilities, and work is expected to be completed October 2009. Contract funds will not expire at the end of the current fiscal year. The Marine Corps Systems Command, Quantico, Va., is the contracting activity.
Good luck!
-Fritz
9 Million Dollar buoyancy order
This is the second order following up from the earlier 5 million dollar order already announced.
Good luck!
-Fritz
------------------------------------------------
Deep Down Receives $9.0 Million Order for Buoyancy
HOUSTON, May 23 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC:DPDW) (BULLETIN BOARD: DPDW) today announced that it has received an approximately $9 million letter of intent from Delba International to supply and install the deepwater marine drilling riser flotation system for the new-build Delba III semisubmersible drilling rig.
The letter of intent is subject to the negotiation of a final purchase order. In addition, Deep Down is currently in negotiations with Delba International to supply and install the flotation system for the new-build Delba IV. Both the Delba III and the Delba IV are rated to drill in 2,400 meters of water but are readily upgradeable to 2,700 meters and have long term contracts to drill in Brazilian waters. The rig set of flotation for the Delba III is scheduled to be delivered in less than one year.
On April 17, Deep Down announced a definitive agreement to purchase all of the outstanding capital stock of Flotation Technologies, Inc. Flotation recently introduced its patent pending CoreTec(TM) drilling riser buoyancy modules, which Deep Down believes can become the industry standard for ultra deepwater applications. Subject to completion of this acquisition, it is expected that the drilling riser flotation systems to be provided under the Delba letter of intent will be manufactured by Flotation Technologies in Biddeford, Maine. Deep Down will handle installation of the drilling riser buoyancy.
"Our reputation for the service we provide in managing the installation of subsea hardware and flowlines is excellent. As a result of this reputation and the desire to source products and services from a smaller number of vendors, our customers are increasingly asking us to supply the products we install. We believe Flotation Technologies offers a superior, technologically-advantaged buoyancy product for deepwater applications. This order evidences the synergies achievable with our relationships in the industry," commented Ronald E. Smith., Deep Down's President and CEO.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.
The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.
The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys.
The Company's strategy is to become a leading provider of products and services to the offshore industry, including shallow, deep and ultra-deep water applications in oil and gas exploration, development and production activities and maritime operations. Management plans to achieve this strategy through organic growth and strategic acquisitions of complementary businesses with technological advantages in deepwater environments. Deep Down's customers include BP Petroleum, Royal Dutch Shell, Exxon Mobil Corporation, Devon Energy Corporation, Chevron Corporation, Anadarko Petroleum Corporation, Marathon Oil Corporation, Kerr-McGee Corporation, Nexen Inc., BHP, Amerada Hess, Helix, Oceaneering International, Inc., Subsea 7, Inc., Transocean Offshore, Diamond Offshore, Marinette Marine Corporation, Acergy, Veolia Environmental Services, Noble Energy Inc., Aker Kvaerner, Cameron, Oil States, Dril-Quip, Inc., Nexans, Cabett, JDR, and Duco, among others. For further company information, please visit http://www.deepdowninc.com/, http://www.electrowaveusa.com/ and http://www.makotechnologies.com/.
One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. Deep Down urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.
DATASOURCE: Deep Down, Inc.
CONTACT: Steven Haag, Investor Relations of Deep Down, Inc.,
+1-281-862-2201, or fax, +1-281-862-2522,
Web site: http://www.deepdowninc.com/
Hi, Randy:
I base my comments on the large volume combined with the price dropping as the sellers consistently sell at the bid. The last 10Q explains where these shares are coming from, IMHO. The financiers were granted a huge allotment of convertible debentures and they are now cashing in big time.
The question is how many shares do they have? I'm going to have to go back through the filings to decipher this all important question, but my instincts are telling me it's not a pretty picture. Cheapies aren't cheap if the sellers have an unlimited supply to sell. I read the filings a week or more ago and haven't the time to go back to re-read them today, but I highly recommend that you do so before buying more. Cheapies are not cheap when the sellers have a virtually unlimited supply to sell. Note the terms of the debentures. If memory serves, they are convertible at a discount to the market rate. This means that when you buy at $.025 they can convert their debt instruments to shares at 80 or 90 percent of the going rate (I can't recall the conversion rate) and dump those shares and still make a nice profit. They can do this all the way down to .0001. Beware and read the filings before committing too much cash here.
I welcome your thoughts. I am more than willing to admit I am wrong if shown that I have mis-read the docs. As a shareholder at $.06 I certainly hope so.
Good luck!
-Fritz
Looks like the business plan has changed. Now they've opted to make cash via a full scale pinkie dilution machine. Bless their hearts.
-Fritz
Right, Siri. ASCO bears watching for sure.
As per Roche:
Annual Meeting of American Society of Clinical Oncology (ASCO), Chicago, May 30 - June 3, 2008
Roche will have a significant presence at the congress with nearly 300 abstracts and posters that show further progress in the treatment of all major cancers. A summary of the key data presented at ASCO by Roche and its collaborators will be provided at the Investors and Analysts Briefing on June 1st and 2nd in Chicago, which we invite you to attend.
300 abstracts! Holy Cow! rHuPH20 just might show up in one of them!
(Remember the comment in the last HALO c/c that they were going to shed some light on the Roche collaberation "soon"?)
Good luck!
-Fritz
Rod: Nice find again.
As to your query:
Why include this statement in abstract? "A drug product with the rhuPH20 enzyme is FDA-approved to increase dispersion and absorption of other injected drugs."
This is certainly not a stray comment (and obviously is referencing Hylenex as I'm sure you are aware). IMHO it is strategically placed there in recognition of the broad audience that this conference will provide. There will most certainly be medical writers from the general press in addition to the more specialized journals so I'm guessing that HALO is trying to educate these generalists about the broad reach of the enzyme platform. In addition, there is no harm in reiterating the great possibilities of co-formulations to reps from other pharma companies who may stop to read the abstract.
Thanks for keeping us up to date!
Good luck!
-Fritz
Stocksablaze, I think that is a perfectly logical conclusion.
Good Luck!
-Fritz
Yes, love these insider buys. All of the directors are picking them up at these sub-dollar levels. No brainer when you read the recent financing and see that the Venture Capitalists are paying way more than that!
Good luck!
-Fritz
Nice find, Rod. It seems that these types of NDAs (co-formulations) are somewhat more streamlined than that for an untested compound. We have surmised that all along but good to see some documented proof.
Good luck!
-Fritz
Thanks for a great summary, Rod, and good advice as well.
-Fritz
Halofan: I agree with your assessment of the recent developments, so I concede that "no news environment" is a poor description of HALO's circumstances in recent weeks. I guess what I meant was "no imminent cash forthcoming" environment. LOL!
Nevertheless, this in the type of situation in which day traders and short players make their money and is particularly prevalant in biotech. For example I have been in and out of GNVC over the same time period as I've held HALO (about 20 months or so). GNVC, like HALO, has a strong pipeline and is most certainly a less risky play now than when I first got in. However, after a lot of ups and downs, the GNVC pps is back to where I started from! At least HALO hasn't pulled back to our starting point!
In any event, I'm confident that this investment will bear substantial fruit in due time.
Good luck!
-Fritz
Good point, Siri.
Don't forget, too, that they drove the pps down to the low $4 range before R. Kirk stepped in around mid-March and made things interesting for them. They had to scramble and cover all the way up to $7 before things cooled off. See the chart below. Now, as often happens with shorts, they are cooly bringing it back down in a no-news environment so as to make up the losses they had to eat while covering. Remember, these guys are pros. They don't often panic as retail investors do. In the mean time I was able to get a little dry powder and bought some at an even $5 this week. If it goes back deep into the $4's I'm gonna have to pawn something because I'm not going to let that opportunity pass again!
Good luck!
-Fritz
You got it, Doc.
Gross profit tripled, margins pushing 40%. Profitable acquisitions bought and paid for. What's not to like?
good luck!
-Fritz
Gross profit and margins are the key to reading this, IMHO.
From the 10Q:
-------------------------------------
Gross Profit. Gross margin for the three months ended March 31, 2008 was $2,403,094 compared to $846,305 in the same prior year period, an increase of $1,556,789 or 184%. Gross margin as a percentage of revenue was 38% in the current period as compared to 40% in the prior period.
Selling, General and Administrative Expenses. SG&A for the three months ended March 31, 2008 was $1,762,247 compared to $659,651 for the same prior-year period. The increase was primarily due to costs related to our acquisitions of Mako and Electrowave. However, SG&A as a percent of net revenue was lower for the three months ended March 31, 2008 at approximately 28% compared to 31% for the same prior period.
---------------------------------------------
Absent the cost of the acuisitions (what?? you thought there were going to be free??) the gross profit is $.028 per share (87 million shares outstanding.) Multply this times 4 quarters and a 30 multiple and I get $3.30 pps.
I'm not sure how this disappoints but we'll see how the market reacts on Monday.
Good luck!
-Fritz
Rhinoman: Tripled revenue is below your expectations? What exactly were you expecting?
Good luck!
-Fritz
R. Kirk's holdings now total 13,871,683 according to today's form 4 filing. Divided by the outstanding shares (79,507,955) he now holds 17.4% of the OS. This is pretty close to our previous estimates and shows that he has another 2.6% yet to purchase to reach his maximum allotment of 20%.
-Fritz
Thanks for the kudos, fellas. I'm just a waterboy on a hall of fame DD team but I'm glad to be a part.
Folks here demonstrate to all individual investors how to conduct
DD more than any book on the subject. IMHO you will all reap the benefit of your hard work as DPDW evolves into an epic story.
Good luck!
-Fritz
nsomniyak: Well said and I agree completely.
Good luck!
-Fritz
Y/W, Sage. Glad you found it useful!
Good luck!
-Fritz
Interesting article about roll-up strategies.
Brikk's comment "that's what makes a roll-up strategy so successful. those who get in early make out very well. and yes, that means us, too. :)" prompted me to educate myself on the topic.
Here's a succinct article on the topic:
http://reverseshellmerger.com/2007/05/08/roll-up-strategy/
A few salient points from the article:
"Indeed, fortunes have been made in the roll-up game. US Filter Corp. had $17 million in sales in 1990. Nine years, 260 acquisitions and a big share-price run-up later, the company sold for $6.2 billion or $31.50 a share."
Indeed, Mr. Butler wasn't talking through his hat regarding his comments on the potential for a billion dollar capitalisation.
Cashing Out
If you are a mom and pop business owner considering being acquired by a public company with a roll-up strategy you need to examine your options. If you are in an industry that has few options for selling your business you will receive far more from the public company than from a private sale. Many would advise you to “take the cash” but the smart bet is to take a combination of both cash and stock, especially if you are one of the first acquisitions in the roll-up strategy. I would rather take stock in company that has just initiated its roll-up strategy than one that has been doing it for 10 years. There is greater risk on the front end but it more than justifies the reward on the back end.
This explains the motivations of the sellers of a successful family business like Flotation Tech. If DPDW comes a calling with cash and stock, it's really an offer you can't refuse.
"Don’t Ignore the Business
Public companies that have a roll-up strategy can get caught up in the frenzy of deal making. It is easy to postpone the basics of instituting back office efficiencies, cutting costs and marketing when you on “on a roll” of consolidating an industry. Companies must remember the reasons they embarked on this type of a strategy in the first place. To create a large company that would be more profitable than a bunch of little ones.
Integration always posses a problem for the acquirer. Trying to centralize certain functions such as purchasing and inventory can be a daunting task. Acquirers are best served when they have management running the company on a daily basis and a separate team that is strictly focused on analyzing and integrating new acquisitions into the system."
This is a most important point and one which DPDW seems to have addressed right at the outset. We have one team working the day to day business and another dedicated strictly to acquisitions.
Textbook, my friends!
Good luck!
-Fritz
Welcome to the board, thesuicidekinginvest.
We'll be interested in your take on the recent CC as well as the upcoming presentation of the Cheetah results.
Good luck!
-Fritz
Rod:
No but the patent holder may be able to extend patent through co-formulation.Halozyme can patent co-formulation with off patent insulins.
Got it. Thanks.
-Fritz
Hi, Siri!, Don't be a stranger! Your comments and insights are a benefit to us all.
I agree that the retail investors will start to have less influence on the PPS as the institutions continue to accumulate and soak up the float. I've been experiencing this phenomenon in another stock, DPDW. It was very volatile until this spring when big money started to take over. As someone observed on that Ihub board, it has been trading like a big board stock ever since with slow steady rational growth. I believe we will be seeing that here as well.
HALO's management team does inspire confidence. They have great strategic vision which benefits, in part, from learning from past mistakes (see Hylenex/BAX). They seem to have assembled some creative minds to search out interesting and not so obvious ways to expand the reach of their IP franchise. For example, who among us this time last year would have come up with the potential cellulite treatment that is now in the pipeline? Forget Botox, ladies, we've got enzymes!! It's becoming more and more apparent to me why the insiders are so confident and continue to accumulate shares as well as predicate their cash bonuses upon growth of the PPS. And, as Idahoshaw pointed out, the appointment of Robert Uhl as the new IR guy will very likely add more transparency to HALO's endeavors which will only strengthen the PPS while the pipeline rolls out.
Good luck!
-Fritz
Thanks for your assessment, Rod.
If HALO co-formulates one of the newer insulin products doesn't that shield them from IP issues since the co-formulation would be a new patentable product? I'm not per se against a partnership on this, but I believe that legally HALO would be free to go it alone if they chose to do so.
I agree with you about the marketability of such a co-formulation. The products out there now just couldn't compete with an insulin product that could be as finely controlled as was described during the call. As Lim said: "a co-formulation with PH20 results in a more physiologic PK/PD profile, such as one would find with the body's own natural insulin." This is the holy grail of diabetes research without a doubt. If HALO is successful here the product will be best in class and dominate a $10 billion world wide market. This could get very interesting.
As for deleting my post I'm not shy about displaying the fact that I often don't know what I'm talking about.
Good luck!
-Fritz
RE: Roche milestone potential
From the transcript:
------------------------------------------------------------
Robert Little
Thank you, Greg. Regarding our partnerships with Roche, Baxter Bioscience for Enhanze Technology and a partnership with Baxter Medication Delivery for HYLENEX, our FDA approved drug. I'll be updating you on all three partnered programs, firstly beginning with Roche.
We've been conducting a number of activities to advance our partnership with Roche. This is evidenced by the continued R&D reimbursement we've received from Roche during the first quarter. These activities include implementation of a higher yielding manufacturing process that is being scaled up to support Roche, as well as Halozyme's internal programs and other partnerships.
In addition, preclinical and toxicology studies have been conducted with the second generation PH20, as those presented in March by Dr. Walter Bee, in which Halozyme found that very doses was well tolerated and revealed no changes in standard toxicity parameters or in male fertility assessment.
<<<and at the end of the call, Lim's concluding comments on Roche>>>
Jonathan Lim
All right, yes. Thank you, everyone. So with the addition of the insulin program, Halozyme's five proprietary programs, just a recap consisted of the following; PH20 insulin, a potentially best-in-class prandial insulin for the treatment of diabetes. PH20 bisphosphonates, which is the only subcutaneous bisphosphonate for treatment of osteoporosis. Chemophase, which is an improved first line chemotherapy for treatment of superficial bladder cancer. PEG PH20, our first in class chemoadjuvant for the treatment of solid tumors. And HTI501, a recombinant human lysosomal protease which is a best-in-class, conditionally active matrix degrading enzyme for therapeutic and aesthetic dermatology.
So all of these are first-in-class or best-in-class therapies that leverage our multi-functional technology and expertise in the extracellular matrix, and provide further proof of the power of our platform. We'd make substantial progress so far in 2008 and we look forward to making continued progress with our insulin program. We hope the data will show advantages over the existing agents in the market. And we are excited about the opportunity this program could offer.
As we mentioned, we'll be presenting our initial data at the ADA meeting next month in San Francisco. Our efforts continue to move forward with Baxter Medication Delivery to commercialize HYLENEX, and with Baxter Bioscience to advance GAMMAGARD into the clinic or in the clinic.
We plan to provide more visibility on the Roche programs, advance our own proprietary programs, and continue our active business development efforts for Enhanze Technology during 2008.
As a reminder, we'll be presenting at the BOA conference next week in Las Vegas and at the Citigroup conference the following week in New York. We look forward to reporting to you again soon on our progress. And again, thank you for your support as our shareholders, and for your participation in today's call.
----------------------------------------------------------------
IMHO, the phrase "more visibility" can be properly translated to the IHUB colloquialism: "NEWS!"
Good luck!
-Fritz
Regarding milestone payments, I detected a note of optimism on this
when it was stated during the CC that we would be hearing more about the Roche efforts in the near term.
-Fritz
Rod, No sense deleting it as your response more than adequately corrects my error. Leaving it there would be more educational to others IMHO.
Thanks and good luck!
-Fritz
Anybody notice that 1Q08 HALO received $3.5 million from BAX for Hylenex? This is $14 million/year and the real launch is just beginning to ramp up. We finally should be seeing some decent numbers by the end of 2Q.
Good luck!
-Fritz
Insiders buying this week.
http://phx.corporate-ir.net/phoenix.zhtml?c=175436&p=irol-sec
-Fritz
Halofan: The shareholders' mtg is by definition not open to the public, so IMHO, any pipeline news would have to be promulgated via a PR or publicly available telephone conference.
Good luck!
-Fritz
"Being a development stage Biotech, we have no earnings"
Geez, they must have found that hundred million dollars under their mattress!
That info is actually incorrect, IMHO.
For example, the May '07, Aug '07 and Nov '07 PR's used the term "business update" as opposed to "pipeline update".
In so far as I can recall, the first instance of the use of the term "pipeline update" was March '08.
Of course it may be a distinction without a difference but we'll see on Friday in any event.
Good luck!
-Fritz
Thanks for the update, Siri.
This coming week should prove quite interesting, IMHO.
Good luck!
-Fritz
Booth 2623, just down the way from Weatherford.
Looks like short covering on Thursday in response to the morning PR. They are nervous that something is up so I don't see them playing any games until after next Friday. It was interesting to me that the language of Thursdays PR specifically mentioned the phrase "pipeline update". I find this salient because we just recently had a CC pipeline update, so this implies to me that there may be something substantial that they intend to bring to light over and above what we heard just recently. Any thoughts?
Good luck!
-Fritz
If they want those cash bonuses they'll certainly have to pay more attention to the PPS.
-Fritz
Nice work, Boodog.
You're right about the $1.20's not being there. It was my back of the napkin figure based on my recall of the average. Sorry if I made you re-read the filings for nothing! :) My point was that the convertibles aren't going to come flooding in until they're in the money, IMHO. In the meantime $.75 and under is almost a sure bet, wouldn't you say? I bought my first shares at that price about 2 years ago and the science has done nothing but get more and more validated since then.
Good luck!
-Fritz