DPDW - Deep Down, Inc.

Discussion in 'Stocks' started by outoftheplane, Jun 18, 2008.

  1. Deep Down, Inc. (DPDW.OB)

    [size=1pt]Profile: 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.
    Sector: Industrial Goods / Industrial Equipment & Components
    Market Cap: $140M
    Website: http://www.deepdowninc.com[/size]


    Technical Analysis:

    DPDW is running a well defined uptrend since February, consistently making new higher relative highs and higher relative lows and reacting positively to the support levels and technical references. The 50-EMA ($1.02) is currently above the 200-EMA ($0.91), both averages with positive leaning. The volume has been high with many sessions consistently above average.

    Current short term resistance @ $1.225 and last relative high @ $1.268, these are the upside references for now, but above these levels there is only significant resistance above $2.00.

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    Fundamental Analysis:

    I found DPDW while searching for Oilfield Services companies specialized in deep water exploration. Recent South American oil findings (coast of Brazil, etc) are creating a great demand for these kinds of services, and I expect this to increase even more with potential new drillings under way.

    The Company fundamentals look solid and with great prospects, Dahlman Rose Analysts just published a new note of research:

    [​IMG]

    They expect a $0.07 EPS in 2008 and $0.11 for 2009, as their price target sets at $2.50 right now using an EV/EBITDA multiple of 15X.