Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Pilot,
I agree with your assessment and am willing to wait until the June auction to see if we get any movement from it on the price here. They could make a go of it, they will have enough pieces left to try, but that does not mean that they won't cancel the shares before emerging from BK.
I agree with you that Flotation was a coup. DPDW has done a great job cleaning up the balance sheet, but the share price will languish until the income statement shows some black instead of red. That is not entirely their fault but due to the economy in general and the canceling of projects by the majors. The spending in 2009 on oil related development projects is off by 21%. Just think where we will be when spending increases in offshore development like it has for the previous decade.
As long as DPDW continues executing their long term business plan I will continue to hold.
It's about time that we had liftoff. FLE has been sitting on the launchpad for some time now. The countdown should be starting anytime. The catalyst here should be the auction on June 22. Holding my position and waiting.....
Don't forget the great earnings reported by EXM after the bell. That in addition to the end of ATM should bode well for DRYS tomorrow.
Halliburton is not a direct competitor of Deep Down. They have many of the same customers in deep water but provide different services as mentioned on the web site.
I only mentioned it because it seems that Hal is keenly aware that deep water is where the action is headed and they are well positioned to get a piece of the action along with our Deep Down.
Halliburton creates new "Deep water" web site.
http://www.halliburton.com/ps/default.aspx?navid=1334&pageid=2727
"Because, with DPDW, that relationship is not so direct. if oil is up business is better; if it's down, biz is worse."
Are you sure about that? Let's see, we are an oil service company so yes high oil prices might be good. There, I am glad we cleared that up.
In a few years $62 oil will seem very cheap. The $147 price last year could be the norm soon unless we break our addiction to gas guzzling vehicles. There is a finite amount of oil and it is getting more expensive to find and extract it.
Deep Down IMO is well positioned to take advantage of future business in the oil patch, which is why it is my largest holding presently.
GLTA
Monaco went from .01 to .27 after filing BK and receiving a buyout offer from Navistar, not Thor. It even stayed around .10 AFTER receiving word later that the shares were going to be canceled.
Yes, Monaco has a lower float but they were buried in debt and not as diversified as Fleetwood.
Let's not forget, Fleetwood is selling RV's and Mfg houses right now, and business is picking up. Go to the RV shows and see for yourself.
It still is unknown at this time if they will cancel the shares in BK but because of the buyout play is worth sticking around..IMO
I was reading the wrong 10Q, recent 10Q shows $145,000 in current portion of short/long term debt and long term debt of $249M.
Yes, this is great news! The RV division has been a money loser for them since 2001. They make great products but not profitable in the current business climate. They will retain the main plant in Riverside, so I will be interested if they will still manufacture RVs under the Fleetwood name.
$53M is higher than what Monaco received and am hoping for higher offers during the auction.
Who knows, maybe they will receive enough money to emerge from BK and continue with the MFG. housing division.
The $534M mentioned is their total liabilities, not their debt.
Long term debt according to the most recent 10Q is $176M of which $109M is current.
Hey cork, show me where their housing division is profitable. It is my understanding that both are suffering, the RV's more so of course. In good times RV's are much more profitable than affordable housing.
Speaking of Alt. energy how does a company like NCEN have a larger market cap than Deep Down. We are disappointed at our 7.1M revenue qtr but they have zero revenue! What a joke. Maybe they are installing windmills in areas with zero wind!
My point is that oil & gas is going to be the play for a while. It is a proven resource since the first oil well was drilled in Pennsylvania. All we need is for the majors to stop delaying projects.
This is good news indeed. I am surprised at the lack of action here based on that news.
Fleetwood has discontinued operations at the travel trailer division. The plant in Oregon was one of the plants shut down. They are selling off the assets of that division to raise cash.
Fleetwood is also in advanced negotiation with buyer(s) to sell the RV and/or mfg housing divisions. That is the main reason that they did not need the DIP financing because they have enogh cash to tide them over until the sale is done. We should hear something soon.
BTW...I purchased more shares on Friday in anticipation of the buyout news.
The OTC is next week so I expect contracts shortly after like last year. Let's see the news sales guys earn their keep.
I personally hope that TARP never happens here. Haven't you seen what the Feds are doing to the other recipients? They won't even accept payment for the TARP loans, all they want is control which they will get when the banks issue common stock to the Treasury in lieu of debt repayments.
Look at the auto companies, who is better off Ford or GM? Ford by a mile because they still have some control of their own company.
I agree shorts covering is causing the runup. I got out too early but made some nice coin. Looking for a pullback for an entry point.
"ETRADE OUT FOR IPHONE !!!!!!!!!!!!"
Can you post a link to the news.
Uncleremus,
"Why would he have a hold rating on it? Doesn't like the sector?"
Here is what was in the article.
Ockham, however, maintains a hold rating on Deep Down’s stock until the company becomes profitable.
Fred, the rig count is at 975 which is down 50% from last summer. The deep offshore rig utilization rate went down from 80% to 60% during the same period. This is according to Halliburton management and Baker Hughes official rig counts.
There are some bright spots worldwide such as Brazil and West Africa, but the good 'ol USA is hurting.
This is exactly why Halliburton opened a second corporate office in Dubai last year and DPDW setup a shell company for future international acquisitions recently. Overseas is where the action is right now unless Washington does an about face and supports increased offshore drilling.
Traderfan, what you fail to mention is that since 2007 DPDW has made several accretive (non-dilutive) acquisitions. They went from about an 8M company to 35M. So it is possible to compare 2007 to 2009..IMO.
I agree with you that their sales are picking up, 4 Beazer homes sold in the last 2 weeks just in my little neighborhood in Texas. They have cut back to the bone so it won't take much of an uptick for them to show a profit.
I hope that we stay at these levels until the buyout news comes which could be any day now. They have had enough time to work out a deal.
Earnings is on the 28th. They should report a loss which according to estimates should be smaller than last quarter. What I am looking forward to is positive guidance about the rest of 2009 and into 2010.
I am surprised this board is so quiet.
We made a big move up today!!!
Yes, Beazer is on it's way to much higher levels...IMO.
Homebuilders and financials are where the action is right now.
Thanks, Odinpinetree. That is the sign that I saw being lifted into place this morning by a crane. I have been waiting for them to put a sign up since they occupied the space there. The NewQuest Properties sign on the building is very large and obtrusive. Having the Deep Down sign at the street will help people find their building in all the Houston sprawl.
The question now is who will be paying them a visit in the near future to hammer out any deals? There has not been an aquisition since Flotation. Oil field service companies are much cheaper now than last summer. And they have all downsized which is fortuitous to small growing companies like Deep Down because quality employees such as the 2 they just hired become available.
When I drove by Deep Down this morning they were installing a new sign in front of their corporate office. I did not have a camera with me or I would have taken a picture. It is a cool sign with the Deep Down blue logo on it.
The price might be only $50M but the question is how much, if any will go to the shareholders. Sounds like their priorities are to pay off secured creditors and let employees keep their jobs.
http://www.forbes.com/2009/03/26/monaco-coach-navistar-markets-equity-acquisition.html?partner=yahootix
Navistar is buying Monaco. No wonder their price went up to .11 today. It was .01 right after their BK. I smell a deal in the works for FLE. They said they were in talks with prospective buyers. The assets alone are worth more than .016!
Monaco was as high as .11 today. What is up? It has gone from .01 to .11 since filing BK.
I am in FLEWE since before BK and it is stuck around .013. I think that it will have a pop soon too.
Good article on Mr. Crean. What a wonderful story. He built a $3B financialy sound company from scratch and in just a few short years his successors drove it into the ground. What a shame. Now they are just trying to survive.
I hope that BofA can help them out with financing so that they can recover.
How much money Layton makes has nothing to do with the share price of ETFC. The two main reasons are the recession and their portfolio of underperforming mortgages.
TikiGal,
I see that you answered your own question. They were on NYSE, not NASDAQ, and got delisted and are now on the OTC BB.
At .07 and in the RV and Mfg home business there is quite a lot of risk here, but if FLE survives, and I believe that they will, we will have one heck of a ride.
Losing money but they can scale the business back more if they have to and competitors are dropping like flies.
Country Coach is now in BK, Monaco has laid off most of their employees and might not reopen. Winnebago stock in free fall because all they make is motorhomes which have been the hardest hit in this downturn.
FLE has a much broader base; TT, 5th wheels RV's, motorhomes and Mfg homes.
4mars, top 10 oil related companies in NW Houston.
NOV, Aker Kaevner, Halliburton, Cameron, Shell, BP, SLB (well SW), Baker Hughes, etc.
Let's just say that most companies in the oil patch have a presence within 10 miles of their new office. Also I wouldn't doubt that at least 2 of the 3 top executives of DDI live in NW area, much nicer than anything on the east side of town like Channelview.
Now let's hope that this move produces some new deals that will lift us up out of the hole that the share price is in.
Also someone mentioned that the new office is 40 minutes away from Channelview, maybe if you drive at midnight.
Fleetwood is selling motorhomes and mobiles but is it enough to stop the bleeding. We will know when the next earning report arrives.
I agree about someday being able to turn off the laptop and enjoy life. It is very nerve wracking to watch my hard earned money go down in value. In the near future I hope to sell all of my stocks and buy something safe like long term Treasury bonds and hit the road, but I have to see a lot of green in my portfolio first.
I am already loaded with enough Fleetwood, now if the market would turn around we would be okay. I also got back into DPDW which I see you also follow. One of these days I might even make some money in stocks.
I got some at .98 today to lower my average. It has to bottom out sometime, doesn't it?
Guys, I just went to the Houston RV show and I was impressed with the crowds. There were more people there than 2 years ago and they were buying! There is pent up demand for RV's. The banks seem to be lending. I already own an RV or I might have come home with one.
Fleetwood was well represented with their big motorhomes; Pace Arrow, Bounder, Southwind, etc.. Real nice units.
Unfortunately on the TT and 5th wheel aisles I did not see a single Fleetwood unit except for a popup. Plenty of Keystone, Jayco, Heartland.