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Bid Support = Rock of Gibraltar
Agreed. No way a buy out happens so cheap. This is building critical mass that will take DPDW there as stock while the company is assembling an entity that will be worth more to a major oil company than that.
But just because an oil company can buy an oil services company does not mean they need to or want to. There is something to be said for having reliable service providers and vendors you can outsource to and charge off as an expense without taking on the additional managerial intergration requirements an acquisition brings.
The primary reason DPDW would be acquired would seem to be proprietary knowledge and skills. But that cuts both ways when you are DPDW management. If you were acquired by one company for a nice price tag that is great, but if you already know your company's services and gear will be in great demand from a dozen such large companies, then you can build revenues to support a price tag 5-10 times higher than a buyout at $10.
So the question then would be what is DPDW managements motivation? Do large stakeholders have their eyes on a big reward or just a solid one. I'd guess on the former actually. When you have the goods in what will be one of the top 3 investing sectors in the next decade, then $10 a share becomes small potatoes.
If they can become a half billion revenue company with 10% net profit margins you have better than $20 a share already. You can see how this could be very big and worth much more than an early buyout. I'm looking for management to want more for their efforts than that.
It will not be a big topic of conversation on many iHub boards over $2. For the majority of iHubber's it is almost as if any stock that high doesn't relate to them as so many of them are chasing instant 10 baggers. You will see a correlation here when there will be less excited chatter when we go up each 25 cent increment simply because those people will have already flipped out of the stock. It is no big deal either since many of them only put in $1,000 to $5,000 to begin with, made their few grand and exited. I believe the other more committed shareholders from this board will be holding much larger positions and are seeing serious gains on paper already. As a group, our remaining DPDW shareholder group here is much larger in sum than the flippers ever were anyway. Therefore, the iHub related shareholders of DPDW that will remain were the most influential and important holders here all along. This is going extremely well. Conviction is being rewarded.
It is very possible we will lose as many as half of the remaining iHub related shareholders in this stock very soon. The temptation to take profits will be too great for people conditioned to flip running stocks. It is all good. Some will hold for real wealth making. We want to shed as many shaky people now anyway. They are being churned out of the loop by bigger accumulators. This is exactly how you want it to happen.
AMEX is very friendly for oil & gas and mining and resource stocks. Nasdaq and NYSE are very good of course, but don't underestimate the value of an AMEX listing in the near future. Even if they uplisted further to the NYSE in the following years, an AMEX listing would serve us all just fine through 2008.
Criteria # 1
It looks like an AMEX application could easily be initiated this year actually based on the progress of the company, the share price catching up to its prospects and developments to come pushing the share price towards $3.
CORRECT
It probably will not matter too much to Mako if DPDW is going where we think it is. In other words, the DD goes both ways and if Mako is psyched about owning DPDW stock you'll know that is how they feel if they close on the acquisition receiving less stock.
For example, if you were going to get 7M shares at a lower price, but now get 3M shares, are they still content?
Well, as insiders they will be happy if they believe DPDW is on its way to $40 a share. Then they have a $100M+ piece of the company on top of their cash payment.
If the Mako acquisition closes with Mako getting less shares to match the originally agreed upon dollar value of the deal that will be SUPER BULLISH.
It will be bullish because it means less dilution for shareholders.
It will be super bullish because the Mako principals expect much higher valuations on their shares to be forthcoming regardless of how many shares they hold.
Clearly not enough is on sale at the bid, therefore most of the action has to go through the Ask. The word on this stock going out recently is causing more than ripples in a pond. The buzz on this stock is sending waves across oceans. You're seeing it in the continued patient accumulation of stock.
DPDW is already showing sustained signs of being one of the purest TA events in all of our investing lifetimes. That, of course, only exists when it is driven by powerful fundamentals underpinning the performance of the stock.
With both TA and fundamental developments working in tandem like this, the skywards limit on this company fundamentally are just as unknown as the share price's upside, but the trading is indicating only an upwards looking prognosis on both accounts for the rest of 2007 and probably for years.
What this board needs is some gabbagool
That was a Bingo! PR. Funny how opportunity knocks. Any who need shares don't have to chase so the lack of market response is their blessing. This is certainly an add shares type of PR for those not fully weighted yet.
Love this: The company has 28,249,552 shares outstanding and no warrants.
That means they can do a raise and get busy with this amazing property and do it so we remain at an excellent OS.
I like share structures under 40M in general. We look to be falling well below that after the next (and what I expect to be the final) raise.
Obvious next step is funding to build the mills and add roads and infrastructure. Today's PR lays the groundwork for the big bucks to flow into this company and then you can watch your investment here grow well into next year as progress is reported.
Don't be surprised if this stock is around $20 before the first gold nugget is brought to market. There will be forward valuations granted by the market as the money is raised, facilities are built and the earth is being moved. It will be very easy to provide updates on the extraction process underway.
They want their gap plain and simple because then they will buy and flip. They are quite open about it. In fact, the whole point of people boasting about it in their posts is if it happens often enough they think others will be more inclined to believe it will happen. If they didn't constantly issue predictions then they wouldn't be able to say "told you so" about some previous gap fill predictions, hence they feel they must post about it to build a record they can use to influence others with.
They want the reputation of being TA gurus so it is a self-fulfilling prophecy when they post. Their intent of course is to influence the stock and cause people to sell. So it is not strictly TA at all. A serious TA guru would be very compelling in their logic and technical, not emotional and boasting. This stuff is just gamesmanship, not about their chart reading skill.
They can play that game with junk stocks because many naive followers sheepishly believe them. They all play the stock together the same way. And the gap fill predictions work because the junk stocks they do it on will inevitably fall to pieces after their runs. But when they show up on a stock like DPDW, they don't have so many sheep following them. Go ahead and stick your necks out with your predictions here because so far everyone who has left with egg on their face.
It is merely an attempt to influence people to sell by stating the idea hoping it will come true. If it doesn't they walk away and don't come back to boast. That is how the self-annointed TA prophets operate on the boards. Good luck to them I guess.
If you are going to bash please do it with something called intelligence. They clearly stated they will not be booking $30M in revenues on that deal because THEY BROKERED a $30M contract for Matrix genius. They clearly said their commission on the deal was $600,000. Get a clue.
It is true. Those were the terms. It is done. More expansion. You'll get down on your hands and knees and pray for thankfulness at any percentage of dilution compared to the growth and the resulting percentage gains in the share price as a result.
Apology accepted. I'm moving on and hope you can get away from it at least with better knowledge if not recovery of losses. So much of investing/trading is about learning from mistakes so there is no poison when I say even that debacle can pay dividends in the future. Even if it just helps you to avoid other pink sheets and scammy operations that is useful experience. I really do well overall and that POS was a giant mistake I freely admit to. In my case, I really had learned my lessons before and it was a brutal reminder that even an experienced person can get derailed if greed distracts them from their previously hard won principles. Before, during and since I have only been in terrific stocks I'm actually invested in. If you need any advice just message me. Good luck
BINGO!! It shows also that someone wanted a big position and they were smart enough to go to the company and say they would buy shares NOW. Otherwise, they'd still be in the market chasing stock like others are. This was a winner for the buyers because it was far cheaper for them to buy at 0.96. This is what it means. And it is very bullish.
Growth companies are growth companies and that means you are investing in an impending explosion of growth. That is why you are still able to buy it at $1 a share.
The question you are asking is what you ask of a $12 stock that already is maturing into positive net cash flow.
Growth companies often need quick infusions of cash to expand at the pace their clients are demanding. What if the company is being offered a $5M contract and the client says they will sign on the dotted line if DPDW shows they are ordering a half million dollar piece of equipment required to fulfill that client's needs? There is plenty of due diligence done by clients to confirm the company they are hiring has the ability to deliver what they want on time.
There are sudden expenditures of all kinds assigned to growth. Asking why a $1 stock needs an infusion to facilitate their expansion is probably missing the point. Small amounts of dilution that are strategic and end up boosting the bottom line become accretive and boost shareholder value too. If $3M adds 3M shares and the resulting workflow adds tens of millions in contracts over time you get paid back for that small amount of dilution and then some.
Very smart interim financing done straight up without warrants evidently. For those who don't know about these things this is Non-Toxic and therefore the safest and best kind of equity financing terms done very close to the share price at the time of the deal.
This is very good because it is not a huge amount of shares and if they need any additional expansionary or acquisition funds of a greater cash amount later they will be able to do it at what will apparently be much higher share prices for even less dilution.
This means they have cash on hand so they can move faster on new contracts and implement all the new things happening which obviously are coming thick and fast.
You need cash on hand to expand and deliver on a growing contract pipeline. This is what they seem to be doing, particularly since they have done it in a relatively smaller amount (yes, I think they could raise $20M with shares right now, but why should they when the stock is going way up from here?). Point is, this looks like a well timed strategic infusion of cash to support growth. Therefore, I consider this another bullish indicator.
No. The last I checked I am still sitting where I am sitting typing this and I have not noticed my hands typing a profile for DJRT. All I can deduce from this is I am not Investor Voices. But if I learn otherwise I'll be sure to tell you.
The parade of forgiveness now being shown after being reamed up the ass and diluted into oblivion is a sight to behold. It just goes to show people will let themselves crash and burn and then have no reservations about trying to pump themselves out of their fiery graves even though that means trying to lure some new sucker into their web so they can sell out to them. Oh the integrity of it all. Either that or some of them are so fucking stupid they actually believe it is all going to get better and the worst is past and they are really trying and they are ......... (Puke!)
You can now refer back to this previous post of mine and see what I was saying. Pull up the long term chart and study it with my comments in mind. Has this caved in from the gains from a couple of months ago? Not at all. New ballgame. 50 cents and counting.
I think they are going to have to hire Walter WINCHell as their PR guy.*
*WW = American historical figure.
That is how the wealthiest have done it. There is a new breed of hedge fund wealth, but still nothing beats holding the right company for the regular investor if they want to really make it in the markets. A stock that goes from a buck to $20 or $40 is a life changing event for most, even with just 10,000 shares. It may not make them rich the first time, but if it gave them their first quarter million capital then they can go and do another DPDW and then you are rich. It only takes 2 or 3 trades in your whole life to get rich on $10,000 seed money. That, of course, is if you get 3 positions in a row that do 20X or 10X each move. And it can take you 3-5 years. But if you do it right you can be a multi-millionaire with just one decision a year. And that is something most flippers on iHub will not accomplish starting with the same stake.
In fact Shell subsidiaries are the most highly represented on DPDW's client list on their website.
You don't think it is limited to a write up do you? Do some research on the other companies they represent. They've been working for GORO since a buck and TBLC since 50 cents or so and look at where those stocks are. If you think they are penny stock pumpers and not seriously involved in business development and non-toxic financing you have not looked very deeply. They get paid what they are worth. They stick around and get the job done over a long term time frame. They've earned my respect as a result.
Looks like a great trading day for DPDW. Like a microcosm of the whole year.
You have your profit takers.
You had MMs yank the Ask up at the open and then short it and the day traders immediately followed them.
Then the higher volume morning finds buying support and starts to go back up on lower volume.
What does that tell us? The traders constitute a minority of the float and it continues to get bought up as people average up.
It means any shorts (MMs/Funds) caught by surprise by yesterday's late surge only got it back into the teens and have capitulated and realized the new support almost surely sits about the previous high of 1.13.
See how this day is a microcosm of the chart of the past year? New higher lows on the dips get bought up by accumulating longs. How sweet it is.
Dahlman should act immediately or else their clients may get their GTC sell orders at 1.50 taken out and not know what hit them as the stock races past the original price target. It would look bad now for Dahlman to let their clients exit a stock that goes up 10-40 times from their first target price.
Excellent. I said the same in broad strokes. It goes right to the bottom line. Even just $100,000 a quarter is about $7,500 a week in cash that pays salaries. It is good for operational cash flow. It is very positive. Who knows if they will end up brokering many other deals or not, but I don't care since I expect their direct contract sales will expand enormously.
At the very least, I look at is a healthy piece of cash flow plus it is of enormous significance about their future activities in the industry. It doesn't matter if some don't consider it a significant event, there will be some with real money who will see the true bullishness of today's PR and will buy into the stock.
Yes, it can mushroom revenues so rapidly that investors could be scrambling to rush into this stock. I don't think there will be slow and steady growth of $1M more per quarter necessarily (though that is fine if so) and maybe the real issue is preparing for growth to handle big orders. Certainly the alliances like Matrix allow them to service more and more needs.
I'd look at it this way: would you be willing to handle growth to $50-100M in contracts even if you had to partner up or outsource some work to do it? Even if that meant you sacrifice a little on your profit margins initially until you can do more of it or all of it in-house?
I'd say a resounding YES to that.
The big issue here is how much can they handle perhaps, not can they get a growth in contracts.
Scale is the probable consideration for this company, i.e. planning for success and a big workload.
True Dat. We be in full agreement.
It goes way beyond being a match maker. DPDW is the US seller of Matrix products now. This could be a very strategic alliance that generates plenty of sales and/or leverages their ability to assemble a full range of solutions for their big oil rigging clients.
Hmmm, RSI is humming right along, not even overheated. Nice.
Yes, I think anybody discovering DPDW for the first time probably has the same shock of recognition I certainly did just 9 days ago. I pulled up the chart and my heart started beating fast and I knew this was that rare long term bullish stock you pray for. Many will start doing it too. Another reason there may be continuation because as the float tightens it becomes a self-fulfilling prophecy that the stock becomes a good buy each step up the ladder. The guy paying 1.50 on a stock going to $15 feels they are getting a bargain and it can carry on like that indefinitely with spurts, dips and pauses along the way. That is what I see happening. That kind of entry taking plus others averaging up can easily absorb profit takers along the way if things keep going well fundamentally.
Actually those old prices are basically irrelevant as the shell was just in the process of being taken over and transformed into DPDW. It is important not to invest any technical analysis faith in the prices before it climbed up from the bottom because those reflect valuations from old entities. In fact, because they are not relevant they also in no way represent resistance of any kind. There is basically blue skies and no known ceiling on this stock.
There are far more than you think, but they are still few and far between. I hold this and TBLC and GORO and DJRT, all penny stocks with futures. But DPDW I scaled in immediately once I found because I knew this could be the lion of the pack. But there are others if you look. TBLC will uplist to the AMEX any day now. I expect DPDW may have a should at applying for an uplist perhaps even before this year is over.
Well, however the PR was titled, the terms of brokering a $30M contract are very clearly stated within it so it is actually quite forthright. It is quite clear what they get paid and how. I'm quite confident the PR is being perceived very well by the vast majority who have and will read it.
One myth is total oil scarcity. The real problem is where the remaining and next big reserves are and since they are often going to be in the deep seas and not on land the sector serving this form of exploration is going to explode.
But we are not running out of oil in the next decade by any means. The real macro issue is environmental and reducing the pollution caused by hydrocarbon emissions. But that is a separate issue. Even being an environmentalist will not deter me from investing in the activity surrounding deep sea oil rigs. I want to make money too even if I want alternative energy. DPDW is the place to be for the money part of it.
It did more than that. Anybody who shorted DPDW and wanted to cover in the 80s or low 90s is now completely on their heels and reeling from their miscaluculation.
I don't think there could have been too many stupid traders or hedge funds that would have tried to short this heavily when it first broke $1, but I do think you may have seen NITE and PERT short it. The way they were camped out on the Ask during previous upwards moves and how they were sneaking around the bid the last couple of days begging for morsels showed them to be feeling for inventory and not getting it.
Any short covering that has to happen should happen tomorrow. That will just add more combustion to a stock with very little available in the trading float.
Is that a picture of your fearsome self with your arms crossed? Man, you are buff and bad looking. Nice horns. Use a higher SPF next time though.