Koil Energy Solutions Inc. (KLNG)

[xZx]

we've already seen them acquire two subsidiaries in 2007, and i think it's quite likely DPDW will continue to grow at this pace via similar deals going forward. as their organic growth becomes more robust, and as the share price increases, the difference from here on out is they can use fewer shares to grab larger companies, and increase the footprint dramatically.

also keep in mind whatever they may acquire in 2008 should provide a compounding revenue stream in the years ahead. hypothetically, let's say company #3, bought in mid-2008 could grow to twice its size by mid-2009, but by then we may have two other subsidiaries, #4 bought in late 2008 and #5 in mid-2009, each contributing even more to the top line.

most bullish of all, this growth is not built into DR's targets imo. all they can do is take account of existing growth rates, existing subsidiaries, and extrapolate what the EPS would be. we've seen it before a few times -- these estimates are designed to change, and they tend to be revised upwards.

so in my calcs i see the potential for them to double and triple their EPS forecasts by EOY 2009, and what's most exciting to me is we already have so many catalysts for upside with only two subs. just think how many opportunities we'll have, for entry into new markets, as the family of deep down companies gets much larger.