Koil Energy Solutions Inc. (KLNG)

[littlefish]

Trueheart, I've lightly followed the company since before Flotec but only recently got active investing in them and taking closer look with what looks like a tightening core of business that can potentially generate enough with margins to kick off some decent cashflow and earnings (and even do that after feeding the compensation at the top).

Nothing yet on that front (earnings) but I'm hoping. Q1 was ugly YOY. Big drop in revs (again).

They did show stronger margins as expected per Q4 CC but the revs were pretty darn light and Butler and Smith clearly did not inform us of a probable light YOY Q1 revs comp in the Q4 CC even though that Q4 CC happened a couple days AFTER Q1 closed.

They should have had a very good feel revs would be light. I don't like that kind of lack of transparency in CCs. Borderline misleading considering Smith went on in the same Q4 CC to state 'If we have the work we'll make the money. We have the work so we'll make the money' or something to that effect (think that was Q4 CC). Smith I'm guessing was eluding to Q2-Q3 since the day of that statement actually fell into beginning of Q2 so I'll give him a pass on that until Q2 comes out.

They threw in that Q1 charge zinger on the divested JV.
Still can't believe these guys are out of touch enough to take full cash bonuses on that deal last year yet still have shareholders and the company liable for further losses going forward (for how long??).
I was pissed when I saw that charge in Q1 so good thing I wasn't on the CC LOL. Too early in morning for me. I would have ripped them.

Considering the Q4 CC took place AFTER Q1 was done, you would think these guys were clueless about the JV loss or else knew there was going to be a charge coming yet failed to mention it in the Q4 CC.
Both thoughts cast a negative cloud on them IMO as far as integrity and honesty toward shareholders first unless they were honestly clueless about it (which would make me wonder about their grasp of the JV biz considering they were very recently involved with it).

There's really no excuse left for Smith and Butler if Q2 disappoints with some kind of loss. I'll exit quickly and not look back if that happens.

I don't think they will disappoint given the clear statements from Smith in the annual CC but they clearly are well versed in how to disappoint smaller shareholders even in 2010 and 2011 when things picked back up in the industry and oil prices headed substantially higher.

Fact is these guys have us all by the balls with the size of their insider positions (been burned on that before) and lack of independent board members. All we can do is sell and take a loss (unless you got lucky on your entry point and/or are a relatively new shareholder) or pray they actually do what they keep talking about doing for once and make money on some sort of sustainable level.

Wouldn't be a big surprise if these guys completely shafted small shareholders and went private. Not expecting that especially if they finally show some profits but it would not shock me given their lack of accountability thru the years IMO.

I don't think they even have a single independent board member currently.

Don't get me wrong, Butler clearly is well spoken, intelligent, and seems to be somewhat forthright with shareholders in the CCs (IMO) based on just the last 2 CCs I've heard. And Smith clearly has a good grasp of the business even with his semi-unpolished delivery. And they both are having CCs instead of just throwing out the ugly Q reports.

But boy these guys have done nothing right for smaller shareholders over time, nothing for the share price, and nothing for the company so far considering they are not some scam or something. This is a real company with big pocket clients that if they could get their act together could do very well.

Let's hope... My attention span with them is pretty short given the history even though I'm pretty new as an investor here.

Thanks to the guys on here posting info like spec machine and 10bagger.

I know my statements grate them (and maybe you) the wrong way but I prefer being blunt when there is reason to be and I feel like this company's management team owes the little guys some kind of break given the ugly share price performance and losses thru the years.

If we get lucky maybe we can push toward a share buyback if they start generating some profits.

All IMO only. Sorry for stepping on toes in advance, just calling it like I see it and I have money at risk here too.

Good luck.