Replies to post #78331 on Koil Energy Solutions Inc. (KLNG)

[valleyboi0]

IMO, The two price events are more co-incidental than related. DPDW provides engineering, mechanical and infrastructure construction and manufacturing services to Big Oil. Big Oil will always have a need for these services.

[spec machine]

The analyst view that I remember was that crude above $70/bbl is the benchmark for continued bullish mid-long term for oil sector.

I don't remember what time frame your question or the responses were addressing.

So, while the sector rotation has cut a broad swath in the energy businesses, it still has little impact on the longer term fundamentals for DDI. Capex estimates in 2008-2012 remain strong especially in deep oil where DDI focus is.

Stock message board sentiment is never a good substitute for trusting either experience analysts or your own evaluation of market trends on the timeframe that best matches your trading/investment horizon.

[xZx]

sharkattack, DPDW has been growing at 100%+ yoy.... imo this is enough strength to decouple it entirely from the price of crude.

what, for instance, would the price of the stock do if they added two new acquisitions the size of flotation technologies, while (during the same time frame) crude sold off $20-$30/barrel?

[Trueheart]

Shark, I think that the price of crude has largely been irrelevant to the PPS of DDI as evidenced by the ride taken by DDI during the relatively strong and lengthly increase in the price of crude which DDI did not track, as you know.

However, I do believe that the very recent huge drop in the price of crude will affect all product and service providers shortly.

Thesis: Not as much money to spend on projects (throw around). A smaller pie means fewer dollars to buy products and services. And perhaps fewer areas to be explored and developed.

Deals that are currently in force may have to be renegotiated and new deals for products and services will be paid fewer dollars.

I think it stands to reason.

I also do not intend to imply that DDI will not grow. To the contrary, I think it will, especially its Flotec division for which I have always been a champion.

However, I think DDI will receive fewer dollars for its products and services and will every other provider simply because there are fewer dollars to go around.

AIMMHO.

Trueheart

[bliz82]

I think in many ways the price of oil is irrelevant to our rapidly growing DPDW family. But if anything, I believe a lower price for oil is actually more favorable to DPDW strictly because of supply and demand. We will use more oil at a cheaper price and thus DPDW's family will see even more business. Either way, the rapid growth in DPDW will continue for the forseeable future. We just need to see a quarter or two of positive earnings again and the rest will take care of itself imo.