Replies to post #67421 on Koil Energy Solutions Inc. (KLNG)

[xZx]

moxyone -- "accretive" is "accretive". good luck chasing.

[tombrady12nh]

moxy-good luck but you are clueless, look what they have gained. Flotec 18 million in two orders. THIS WILL NOT GO BACK UNDER A BUCK.

[Landshark]

40% yes

but double revenues.

no debt.

extra cash on hand.


I'd say a well spent 40%.

[SageWise]

40% off the old $2.50 target gives you $1.50, assuming this was a purely dilutive move to keep the lights on. It's not. The acquisition is more than paying for itself in terms of revenues. Balance sheet improvements are significant. PBR is driving new rig builds at a frantic pace with which their domestic ship builders can't keep up. 12 new deepwater rigs by 2011 all to be built outside Brazil. We've already landed buoyancy LOIs for two of those. 28 more thru' 2017 to be built in Brazil. Assuming we can get even 25% of those rigs at about $10M per, gives you $100M over the next 9 years - just the rig builds PBR is driving. PBR is also driving 140 service ships. I have no idea how much/what type buoyancy might be involved there. We've seen at least $5.5M of other buoyancy already for 2008. Flot Tech is by far the most significant acquisition of all three so far and will be a launch pad for significant growth. Will be interesting to see what DR has to say about the target now.


Sage

[ickyy]

i got some bids in the .70's ...just in case....doubt it will go under a buck...but then again with a low float anything can happen

[10 bagger]

DPDW..

Dilution is dilution..

From the statement above it appears that you have a case but,, The purchase price of DPDW by investors was equal to the price DPDW was trading at when the deal was done..

The purchase was made with out kickers or wts except what Dahlman got and that we don't know yet.. The Flotation Deal is accreative because of the low earnings base that DPDW had and all debIt has been repaid releasing the burden of 2 Mil in interest obligations each year..

The way I see it is that DPDW's price is the only thing that got ahead of the deal and was because of the closing date and not because the underwriting gave any special benefit to any investor..

There will be others that say the sale was dilutive,, but as I did when I lightened up of half the position because I had no news,, after reading the news I hope you are right and others misread a closing date for the date of the deal and sell below $1.00... Finding funds will be the real task,, not making the trade... hank

[10thMountain]

Well, most people know, that investors don't always buy a stock for it's exact worth. They buy for it's potential, and future worth. Many investors don't even do the math. They see dollar signs in the stocks future, and buy, based on what they think it 'will' be worth further down the road. So, sure, the math at the moment might say .70, but obviously the market is saying it's worth much more.....