Replies to post #55320 on Koil Energy Solutions Inc. (KLNG)

[SageWise]

RILO/Jay, That S&P report gives an estimated 2009 P/E of 5.8 which I believe is based on a PPS of .75 (and EPS of 0.13). I'm not sure what the typical P/E is, for an oil services co. SLB has a P/E of around 20. Oil States (OIS) is around 10. These are obviously much bigger/mature Co's. Generally, a growing co such as DDI should command a higher P/E than these Co's. With a very conservative (IMO) P/E of 20 for 2009, we would get a PPS of $2.6. A P/E of 30 would give us $3.9. P/E of 40 would be $5.2. All these, based on 0.13 EPS. Someone else on this board should be able to suggest a good P/E value to use for DPDW.

[tothe]

jay.." S&P street estimates" are dry from the 10Q's and lagging figures..DRCO comes from the technical resistance point but is also is privy to inside information limited by NDA...IMO I am really not a market expert to answer your question. DRCO has the same DD as this board and I would be inclined to follow their lead as they have a vested interest in DPDW.

[chevdawg18]

you multiply the EPS of .13 x the PE multiple. Given SLB's PE is 20 and is a much much much more developed company, i would defiantely argue that DPDW should command a much higher PE (given it has a much greater chance of growth, espically thru acquisitons), espically once/if it gets listed on the AMEX.

All in all, once were on the AMEX i say a PE of 30 should be pretty fair, but higher depending on the factors that are coming out of the company. Major factors will be how fast the company is growing and the type of margins they are setting force.

Keep in mind, this company is very unique for many institutional traders who look to lock up a peice of a deepwater oil services company that is up and coming and some may not care about giving a PE of 30/40 as long as they get a peice of the company once it gets onto the AMEX.

all just my opinion, but .13 EPS is HUGE with a capital H imo