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I disagree. I believe the quality of your products and services forms your identity, not the image of your website. The quality and on-time delivery of your products and services determines repeat business. This isn't a Zapoos, Best Buy, or other type of retailer. These are industrial goods for projects that are bid on by the company, not over the counter sales. The company I work for didn't have a legit website until 2 years ago when we grossed over $250 mill. We sell industrial valves and actuators mainly by bidding large projects, similar to DPDW.
It's just a 3rd party web service provider. I wouldn't sweat it. The company needs to focus on sales, not their website. Keep in mind the allocation of capital for a small company like DPDW. Managing the website on a day-to-day basis doesn't seem like the most important thing to me if I'm CEO. IMO.
I wish we could get this ticker uplisted sooner rather than later. One of the problems with the OTC market is that stocks, or a majority of them, are not traded on fundamentals. If you annualized the company's 6 month trailing EPS, we're looking at approx $0.16 FY2013 EPS (includes the newly issued shares). Assign an industry avg. PE of 25x and the PPS should be sitting around $4.25. This is a very basic and simple valuation. I don't think the company has enough of a profitable and positive cash-flow history to dive into a DCF valuation.
The problem is a combination of OTC ideological trading (not on fundamentals) and low liquidity.
I agree the bid matters but, it doesn't matter if people are willing to sell at less than the current PPS. Any rational person would set their ASK at the highest reasonable price. Doesn't look like whoever is selling <PPS is being too rational in this case. Bid increasing is a good indication.
ASK at 2.64.... why would anyone be selling below the PPS? Unless they're desperate to get out. Idiots.
Yes. Not much liquidity.
Good indication here. Shares are being held tight and not many holders looking to sell at the current PPS.
Very true! It's come back nicely. Wishing I bought more on the dip.
Hey spec. Sorry, I don't have PM. I posted the article since it does have some relevance in relation to DPDW considering this is the industry they're in. It gives an outlook on the industry and how large it's expected to grow in the next 5 years. DPDW just needs to get a piece of the pie.
Power Grid System Market in Subsea Worth $2,365.1 Mln by 2018
The report “Power Grid System Market In Subsea, by Offshore Power (Captive Generation, Wind Power, Others), Components (Cables, Variable Speed Drives, Transformers, Switchgears, Others), and Geography – Global Trends & Forecast to 2018” defines and segments the global subsea power grid market with analysis and forecast of the global revenue. Subsea power grid market will grow from an estimated $1,196.6 million in 2013 to $2,365.1 million by 2018, with a CAGR of 11.9% through 2018.
Power grid system market in subsea is mainly driven by growing demand for energy and increasing investment in offshore infrastructure. High rate of exploration and production of offshore oil wells and thriving investment in oil fields developments in deeper waters, is the major growth engine for this market. African region is the largest end user market for subsea power grid services and solutions and is expected to continue with the same trend.
Subsea and offshore industry acts as the parent market of power grids system market in subsea. Its growth and demand is highly influenced by the parent market. Capital spending of the subsea has significantly increased, which clearly depicts the growth of the subsea sector globally. Subsea equipment like compressors, boosters, etc., requires power supply for various subsea exploration processes, and this is provided by the subsea power grid system, which is quite essential in order to have an efficient subsea operation.
The deepwater subsea market is growing and will continue to grow significantly over the next five years, with West Africa, North America, and Europe leading the way in total expenditures. This has created a considerable market for power grids in subsea and power supply equipment, and will continue to expand with the subsea market. This trend makes the subsea power grid system industry lucrative for both grid/components manufacturers and service operators. On account of heavy offshore infrastructure development and shifting focus towards renewable energy sources, the power grid system market in subsea will experience a tremendous increase in demand in the years to come.
In the current global power grid system market in subsea, the cables are the key component on the basis of market size and are projected to grow with significant rate in the near future. The cables demand is projected to increase heavily due to the increased subsea equipments requiring power supply.
The captive generation is the largest energy generation mode across the globe supplemented by the huge number of established offshore oil and gas platforms. On the other hand, offshore wind farms are gaining a sharp focus as a renewable energy generation source. Europe is representing a huge potential in terms of renewable energy supply for subsea power grids system. Subsea power grid manufactures and solution providers are continuously trying to integrate their existing technologies in order to provide a more cost effective and efficient solution, which in turn helps them to secure bulk supply and service contracts. Being a high technologically innovative market, it has a few number of industry players which are well established. Contracts, agreements, joint ventures and partnership activities are some of the key strategies followed by leading industry players to increase their market penetration in various regions. Leading industry players of this market include FMC Technologies Inc. (U.S.), ABB Ltd (Switzerland), General Electrics Co. (U.S.), Aker Solutions ASA (Norway), Cameron International Corp (U.S.), and Siemens AG (Germany).
The report forecasts global revenue of power grid system market in subsea and its various submarkets with respect to six main regions such as Africa, Latin America, Europe, Asia-Pacific, North America, and Rest of World.
The report segments the global power grid system market in subsea by components type, power supply type, and geography. It also focuses on market share analysis, value chain, Porters five force analysis, and market metrics such as drivers, restraints, and opportunities. This report also presents the competitive landscape and company profiles. In addition, 18 key players in the market have also been profiled.
Press Release, September 16, 2013
Yes, they find investors for the private placement on behalf of DPDW. The fee is probably a predetermined percentage of the amount raised.
5.5k BID at 2.40. No let off on the buying. Looking strong.
While I generally agree with you comments, I do think we need to give Ron a little credit for following thru on some of his previous comments.
From the FY2012 10-K
Ronald E. Smith, Chief Executive Officer, stated,.... "We believe, because of all the steps we took in 2012, we are poised to achieve great things in 2013 and beyond. We should have substantial improvement in our net income and EBITDA.”
At the current moment, their backlog of $26 million exceeds their market value of $23 million. Obviously valuations aren't done based on backlog but, just wanted to bring this to light.
Is "future" next quarter or 3 years from now?
For example, I purchased Flotek (FTK) back in early 2010 when it was trading in the $1.50-$2.00 PPS range. The O/S at this time was approx 24 million shares. I was patient and disciplined enough to hold through a series of equity offerings and consequently, dips in the PPS. The market is quick to have a negative reaction when any company does an equity offering, even when it's for an acquisition. Obviously, it would be better to finance growth & expansion organically. I sold around $12 PPS but, obviously should have held in retrospect considering the stock just hit a 52 week high. Today, the company has slightly double the amount of shares outstanding.
I'm not trying to brag, just trying to get my point across on DPDW. These are the companies I look for. My profile is E&Ps or oil services companies in the $1-$3 price range with a 2-3 year investment horizon. Judging by all your screens/charts/graphs, I assume you're a day trader. Which is fine if thats your investment objectives. Mine are more long term.
I'm all for a healthy discussion.
It would be one thing if the company had negative profits and negative cash flow to do an equity offering. That's not the case here as seen in their financials over the past 6 months.
Thanks for pointing out the obvious. I'm a long term investor. Not a day trader.
Did anyone see this HBJ article from back in June? Sorry if this is redundant.
http://www.bizjournals.com/houston/blog/nuts-and-bolts/2013/06/deep-down-ceo-delves-deep-into-past.html
Not holding PVEN or PWEI
Agreed. I'm thinking the PWEI announcement by VM is being used by APS as a distraction. Why would APS allow VM to release the pick before releasing it to Premium Members? Doesn't add up.
When Q2 EPS of $.10 were released on August 13th, the stock jumped +20% from 1.95 to 2.40. Over the next few weeks, it steadily climbed to 2.60. Surely, the BOD and management have realized the impact positive EPS has to the PPS, investor confidence and the market's reaction. I highly doubt they would take steps backwards in light of the impact positive EPS news has had on their holdings. I believe this equity offering will be used to expand production and service capacity which should lead to future growth. I think its all contingent on what type of investor you are. Short term, this might be unfavorable. Long term, it should be a good hold.
Why would APS allow VM to release the pick prior to giving Premium Members the alert? This smells like a distraction by APS to me. The O/S on PWEI doesn't fit the APS profile. All IMO.
My 2 cents: I think the private placement coincides with their backlog and the new facility expansion. I would be more concerned if the company wasn't positive cash flowing and decided to issue shares for capital but, they had positive EBITDA of $1.7 mill in Q2. I don't believe $1.7 mill in free cash flow would allow them to expand their operations as quickly as they're demand is indicating.
So, we'll see if the private placement creates a buying opportunity today. Investors tend to overreact on a stock issuance without giving any consideration as to why a company is raising capital. I think this is positive news and agree that a large contract following would support such.
Hey guys! I'm new to the board and glad to be here. First question, how is DPDW not priced >$5 pps? I'm seeing FY2013 revenues coming in at approx $35 mill and based on their 6 month profit margin of 8%, the stock is deeply undervalued. Using Dril-Quip's P/E of 30x, my PPS forecast is in the $5-$8 range.
a) $35 mill FY13 revenue x .08 PM = $2.8 mill/ 10.3 mill O/S = 0.27 FY13 EPS x 30x P/E = $8.10 PPS.
b) $35 mill FY13 revenue x .08 PM = $2.8 mill/ 10.3 mill O/S = 0.27 FY13 EPS x 20x P/E = $5.40 PPS.
nope! not out!
MM BMAK just bought 500k of PVEN at 0.23
What's their theory behind releasing it in the afternoon vs opening bell?
Up 88% 5 minutes into the day. Does not smell like APS.
Cool, thanks.
Can you post the email you got? I haven't seen anything AH.
Wow! They actually released an updated! Although I've lost all hope for this company, I'll continue to check up with them occasionally. Looks like they're doing some major cost cutting. I think they were way too aggressive with their expansion plans. They put the cart before the horse.
Good strategy. I'd like to see a short cover here but last short report I saw didn't suggest there were too many shares borrowed against.
VERT showing a big bid frightens me a little. This MM is known for damaging some stocks.
Could certainly see accumulation at these levels. The bounce to $1 will be a combination of people holding and shorts covering. Assuming shares are held and not sold on the bounce.
No emails last night or this morning. Hmmmm.....
Is American Copper Corp (AMCU) the next APS???
Does this smell like APS to you? What gives you that feeling? Just curious.
Yep. This is a $800k promo. I highly doubt it ends after just a few days.