ok deep downers -im about to share a mini interview with you from investor relations at deep down- these were questions i asked before scheduling my trip -we have all hashed out the first question on the board already and i agree this is not the time for a buyback of any kind ! below are the responses--ENJOY!
Steve,
I couldn't agree with you more about changing the views of an investor who simply takes notice of the chart and doesn't further investigate the fundamentals of this potential sub sea service giant in the making. Which leads me to ask these questions . First, at the current trading price which in my opinion is well below fair market value .Does management or has the management considered a share buyback program? I think it would definitely display managements belief in the growth of this company.
RESPONSE-- The stock already is tightly held with around 13 million in the float. Frankly, reducing the float further would subject the PPS to the possibility of even greater swings. So, in my opinion, at least at the present time, I really don't see 1) management buying back shares to reduce an already small float, and 2) I really question the positive benefit it would have in our current situation. I believe you'll see management continuing to grow the company, its market share, and technological solutions rather than focusing on stock schemes for any given time period.
Second, and I'm sure you cant give an exact time frame but would up listing be a possibility in 2008 and if so what market are we targeting and have they any future plans for eventually up listing to an even bigger market in the future?
RESPONSE-- Although the company has not made any public announcements regarding up listing, I can tell you that, sure, it is the goal of management to up list at some point. However, only a mature company has hopes of successfully up listing, and management is definitely laying the proper groundwork for that. Once an exchange is identified as desirable, and a time frame determined, that would be publicly announced.
We also have discussed the possibility of the company doubling revenues for 2007 and while I believe that is highly likely to happen and would put us in the twenty million dollar range for 2007, I am just as interested to know if management has the company on track to do the same or better in 2008?
RESPONSE-- Although I have not seen any 1st quarter numbers, the recent flurry of press regarding custom solutions, and steel flying lead orders leads me to believe that management is in fact keeping us on track in this growing industry. It is my firm belief that management intends to continue its growth in 2008, and these early orders lend further credence to it.
We have also completed testing of the proteus and what a beast it is! I am very impressed by both the Proteus and the 4000m Lar's and believe the potential market for these revolutionary products is very attractive. The obvious question is how attractive is the market for our proteus as I see everyone and their brother is trying to compete, but hey ours is the best ! So now that we can produce the proteus in mass what would be a realistic goal for 2008 as well as future goals 5,10,15 in a years time or possibly more?
RESPONSE-- We have not publicly released sales projections for the Proteus; but, with thousands of winches worldwide that dangle things in the ocean, you can bet that demand is there, and Deep Down is poised to deliver. Delivery time is another important distinction regarding Deep Down's value proposition - time is money on the ocean; so, if we can deliver both superlative products, and deliver quickly, this can be an important factor in the Proteus' success and sales numbers,.
My same question would apply to our super lar's as well seeing as these are our big ticket items. Also doe's management have plans for more big ticket items such as proteus or lar's in the pipeline?
RESPONSE-- As our customers require technological solutions, those product historically have become new product lines, so yes.
Speaking of the pipeline, if you could put a number on the amount of acquisitions the company would be interested in accomplishing over a period of time how many would it be or just how big of a company would management like to see Deep Down become?
RESPONSE-- I can't quantify that in this forum; however, Gene Butler was not brought on to only build a million dollar company. All I will say is management is thinking BIG!
Even if that question could be answered in terms of market cap I would be interested in knowing their intentions of growth.
RESPONSE-- BIG!
Also, do you see the managements intention's of building a sub sea giant that will weather out the storm or is there always the possibility that they themselves could become an acquisition?RESPONSE-- Ron Smith has built this company from an idea to a major industry player. He currently does not now have any plans to become an acquisition. My answer today is NO.
These are probably enough questions for now and answers or suggestive answer's you can provide would be very helpful. I appreciate your insights and look forward to growing over the years to come with the Deep Down family and share your bullishness of this company to the fullest extent! I would even love to make a career out of this company and have every intention of being a lifetime investor in Deep Down. Which leads me to my final question of , how soon and to what extent could we set up a tour of the company and discuss further the growth and future of this company and just come see the facilities first hand?
RESPONSE-- See you Thursday!!!
Thank you again Steve for your correspondence and I look forward to meeting and talking with you throughout the years to come!
Best Regard's
John
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