Koil Energy Solutions Inc. (KLNG)

[jk21]

That's a good point about why it's hard to put a valuation on dpdw...........the fact that they've changed so much in under 2 years. it makes just reading through their financials a little difficult; i can only imagine how hard it makes the accounting.

With regards to a 25-30 PE, i'm not sure if the market'll get back to confidence levels like that in the near future for a young OTC growth company or not. but it's troublesome to use PE ratios anyway because of our youth and inconsistent record. if we did a 25-30 PE on earnings of .01 [or (.01) for '08] that puts us at .25-.30 at best. But due to the youth of our company and short track record, book value is a better metric imo.

as of friday's close:
SLB is trading at Price/Book (mrq): 3.37
OII is trading at Price/Book (mrq): 1.43
PBR is trading at Price/Book (mrq): 1.54
RIG is trading at Price/Book (mrq): 1.33


Industry Statistics for Oil & Gas Drilling & Exploration
http://biz.yahoo.com/ic/123.html

Market Capitalization: 950B
Price / Earnings: 9.5
Price / Book: 2.4
Net Profit Margin (mrq): 14.6%
Price To Free Cash Flow (mrq): -71.2
Return on Equity: 23.1%
Total Debt / Equity: 0.4
Dividend Yield: 2.3%


If the average right now is to trade at 2.4 book value, that would put us at .74ish (i'll take it right about now), but the industry is much more mature and has a longer track record, so we should trade at a discount....but on the other hand, we are growing by triple or high-double digits, so some would say we deserve a higher multiple. and finally, in this environment, much of the common sort of thinking/valuing is thrown out the window. lol. i do feel the fear receding though and just a sober and more logical look at a recession and very weak economic data will hopefully remain. if so, we can trade well in an environment like that, just not in an environment where fear reigns supreme.