Replies to post #107326 on Koil Energy Solutions Inc. (KLNG)

[Fred Kadiddlehopper]

This company has never been run for the benefit of shareholders; corporate governance rules were adopted long ago to ensure that the insiders benefit at the expense of individual investors. As far as I know those rules are still in place. Ron and his ilk created a corrupt corporate culture of self dealing and outright thievery and individual shareholders have no recourse under the corporate charter. One would be wise in not assuming that that has changed simply because Cap'n Ron has moved offstage. Run away and don't look back. There are plenty of other investing opportunities - why wade into a cesspool like DPDW?
Good luck!
-Fritz

[spec machine]

There are too many red flags here to list them all but here are the top few current ones that are easily verifiable

1 - market sector is horrible
GOM energy sector is in the worst crash in decades, services will be dropping like flies soon
The good ones might be targets for acquisitions by larger companies but at pennies on the dollar
Deep Down is not a good acquisition target for too many reasons to list but if it was, the transaction would be at or below current share price, IMO

2 - no trust in management or the books
Years of mismanagement to the detriment of shareholders and lenders
Management and a few select employees were richly rewarded even as the company suffered considerable losses
In communications with shareholders, management continued to hype the fact that book value exceeded share price without ever addressing the reason why (no trust in management or the books, combined with anticipation of continued losses)

3 - the company never generated profits in good times, a close examination of the short period that seems to indicate a profitable period will reveal that it was only due to the timing of recording gains and losses

There are many microcap and small cap companies that are better bets for short or long term gains, IMO

This one had their chance and blew it bigly

The smoldering ashes aren’t ever going to be a campfire let alone a bonfire

spec