Replies to post #49547 on Koil Energy Solutions Inc. (KLNG)

[jdsgungho]

quite honestly i believe most of the action is global right now --perhaps allis chambers is concentrated in the gulf --or maybe they should stick to making combines --but imo this industry is booming!

[sidedraft]

Well Allis-Chalmers' COO just resigned, could be poor management.
Could be a string of bad luck hit them.

The reasons for the dismal PPS of DPDW in the eyes of this casual observer are:

1. Where we trade. It irks my soul to see some buyer with two hands full of hundred dollar bills place an order for way below the ask, and then to see the market makers jump through their butt to walk the price down to take their money. The dip in price has to recover, and is slow in coming back up. Then here comes another whale and the same thing happens. It's hard to look and feel your best when the kicks to the groin keep coming.


2. The last couple of press release did not attract new money. The last one in particular gave no dollar figures at all.

As I said, just the view of a casual observing stock holder.

[SageWise]

Fred - I believe it's a tale of two shores - offshore and onshore. Most of their (Allis-Chalmers) drill pipes must be going to the onshore market IMO.
Allis-Chalmer's recent SEC filing:
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001362310-08-000383&Type=HTML

"Operating results in the fourth quarter of 2007 were primarily impacted by:
• Weakness in demand for drill pipe in the Gulf of Mexico due to the hurricane season and the departure of rigs to the international market.
• Severe flooding in Villahermosa, the largest operating yard in our Mexican tubular services operation.
• Labor strikes in Argentina for 15 days, because of the October presidential elections, affecting our International Drilling segment. Additionally, the new Argentine government imposed a corporate tax on all employees.
• Start up costs and low utilization for our coil tubing units."

Here's a recent rig utilization report:
http://www.worldoil.com/magazine/MAGAZINE_DETAIL.asp?ART_ID=3258&MONTH_YEAR=Aug-2007
"The US Gulf of Mexico (US-GOM) rig market remains the world’s largest in terms of number of rigs. However, the US-GOM jackup market remains the weakest link in the global rig market chain, although rig demand in the deepwater Gulf, and in most of the world’s other rig markets, remains robust."