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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (31463)	7/14/2008 1:22:31 PM
From: Lazarus	Respond to of 78701

I have that one on watch Paul.

To: Paul Senior who wrote (31463)	7/16/2008 4:44:57 PM
From: E_K_S	Respond to of 78701

Hi Paul - Thanks for pointing this one out. I started a small position in the penny stock DEEP DOWN, INC. (OTC BB: DPDW.OB) finance.yahoo.com . I think there is some hidden value in this company, specifically with their recent acquisition of Flotation Technologies. This is an interesting company that actually earns money. Deep Down, Inc. provides products and services to the offshore energy industry to support deepwater exploration, development, and production of oil and gas, and other maritime operations worldwide. Here is the S&P report from their Web page. solutions.standardandpoors.com The item that stuck out to me is their revenue growth in 2007 and their results so far for 2008. (These figures do not include the $18 million "letter of intent" for follow on orders from their Flotation Technologies division.) This is unusual for a penny stock company but they appear to accomplish this by acting through regional country service reps to bring deep water specialized service skills & equipment (from Texas) to the large deep water drillers worldwide. They have been very successful in building these sales relationships especially in Brazil. The one item that caught my attention is their specialized Syntactic Foam Flotation Products and their recent acquisition of Floatation technologies in April 2008. This was a 100% stock transaction (hence the large no. of shares outstanding 134 million and penny stock price). After working several months with Flotation Technologies and the local Brazilian service rep (Daslik do Brazil) a $5 million service contract was obtained to provide a custom designed offshore deep water flotation system(s) to Delba International a major supplier to Petróleo Brasileiro S.A (PBR). The original deal was so successful that the company received several follow-on orders for the other Delba drill rigs. Together with the previously announced letter of intent for the Delba-3 rig, Deep Down now has orders for approximately $18 million for their custom engineered deepwater marine drilling riser flotation systems. This was all accomplished in less than six months! The company had $19 million in revenues (from all divisions) in 2007 and so far to date, Deep Down Inc., through their flotation division should match that amount. I have to give credit to Paul for finding this one and as with any penny stock understand that one could loose 100% of their investment. This is a high risk with a high potential reward. The stock is thinly traded. IMO the hidden jewel in this business is the newly acquired Floatation Technology company. This is one to buy and put away for awhile. Flotation Technologies was recently certified to do business with PBR so the new subsidiary had to meet some minimum "new company" standards. Therefore, they pay their bills and it's a going concern. On Tuesday, PBR signed $3 billion of new contracts with Transocean to lease several deep water drilling rigs (http://www.chron.com/disp/story.mpl/business/5888689.html ). It's very possible Deep Down Inc. (DPDW) could receive some new business from these new drill rig lease contracts PBR signed. In any case, DPDW is one to watch especially their Floatation Technologies Division. EKS

To: Paul Senior who wrote (31463)	8/20/2008 9:49:17 AM
From: E_K_S	Read Replies (1) \| Respond to of 78701

Deep Down, Inc. (DPDW.OB) - Deep Down Announces 96% Increase in Revenues (Wednesday August 20, 9:00 am ET) biz.yahoo.com From the article:"..."I am pleased to report this quarter that Deep Down continues to improve its financial position. The Company is now essentially debt free and has retired all of its remaining preferred shares. Liquidity is strong with unrestricted cash and equivalents of $4.1 million and a current ratio of 3.8. Our working capital position is $10.8 million. Stockholders' equity has improved dramatically and is now $52.9 million compared to $12.6 million on December 31, 2007. We remain excited and optimistic about the prospects for continued revenue growth and a return to profitability," commented Robert E. Chamberlain, Jr., Deep Down's Chairman...." ========================================================= Pretty good for a penny stock. Hopefully the price will respond accordingly. Future outlook continues to look promising. EKS