Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E_K_S who wrote (31808)	9/5/2008 8:54:07 PM
From: E_K_S	Respond to of 78702

In line with the Brazilian investment theme and the eventual build out of their offshore Oil & NG fields, I increased my small position in Deep Down, Inc. (DPDW.OB). The company announced last week that they have appointed Bryce Merrill to the position of Director of Subsea Services at Mako Technologies. Mako Technologies is a wholly owned subsidiary of Deep Down Inc and provides deep water ROV (remote operated vehicles) services. Deep Down Expands ROV Staff Through Mako Technologies news.corporate.findlaw.com From the article:"...Merrill served on various projects for BP, Chevron, Petrobras, Shell and Total. During his tenure at Oceaneering International, Inc., he served as ROV supervisor for the Petrobras Pacnorse project, where he was responsible for operation of the Arms Bell onboard the drillship, which at the time set a new world depth record with a dive to 3032 feet. Merrill has significant experience designing and building specialty tools used in subsea operations....". The value proposition is that Merrill will bring his contacts and experience to build a growing subsea off shore oil rig service business specifically in support of one or more PBR long term (oil rig) service contracts. Floatation Technologies (another subsidiary of DPDW) has already signed a multi year service contract with PBR for floatation buoys and I suspect Mako with the help of Bruce Merrill will do the same for deep water ROV services. This is a penny stock with a huge number of shares outstanding. The company must grow their sales over time obtaining multi year service contracts that create guaranteed revenue streams. If Mako lands any future service contracts with PBR, this division could generate new sales equivalent to their Floatation Technology division. This is a high risk high return play that allows exposure to the huge dollars Brazil intends to spend on the development of their Oil & NG offshore fields. The value proposition is in the individual (Bryce Merrill and his PBR contacts) and the potential new contracts he might bring to Mako. At $0.62/share, a total loss will not hurt too much but over the next several years it could become a multi bagger. EKS