Replies to post #49068 on Koil Energy Solutions Inc. (KLNG)

[quicksilver763]

how much lower is this stock going to go? its kinda weird to me how brikk is always so optimistic about this stock. i would like to hear both sides, maybe there is something going on that we dont know about that can explain this ridiculous drop despite the positive pr's.

[chevdawg18]

I understand that Sulphur, and im sure the company would keep that in mind while making the decision, but heres my theory:

DPDW management uses, lets say, $750,000 to buy back stock here.

They try and accumulate as much as they can in the .70s and .80s. Say it takes around 225,000 shares to run us up to .90 while mostly staying on the bid and accumulating shares. Thats 225,000 * .80 avg = $180,000

Then the confidence would be coming back and the momo coming back, then the retailers would start buying as well, but lets say the purchase 100K shares to run us up to 1.05 all on the ask to push us higher.
Thats 100,000 * .95 avg = $95,000

The momo is back, IHUB traders begin buying it up on the reversal and DPDW plows in more money on the ask and takes us up to around 1.30. It wont take much money at this point with the momo back and the ask much lighter as indivduals stop selling (much the same as the run from .70-2.35.
Thats 150,000 * 1.18 avg = $177,000

Now the stock is rolling, the momo is back and the company has an average of say around .95 and has 475,000 shares. The company, if it wished to do so, could then begin selling these shares ON THE ASK, say about 3,000 per .01 spread up till the 2.50 range. It would not harm the stock in the least and with a .95 avg they would be essentially doubling the money.

This profit would all go to the bottom line, minus the commissions and cap gains taxes, and would essentially be an extra $400,000 in profit for the following Qs. Add to this the company could then begin running out its major PR's that it should have, and maybe even a new LOI while the stock price is back to fair market value and they can LOI at a "fair market price" and not a depressed market value price.

I dont know if they would even think of doing this, but it would help out the bottom line, increase shareholer confidence, bring the shareprice where it should be trading at (at least in the companies eyes), and most of all again, help out their fellow shareholders in a time when they need some help.