DPDW.OB

[pompano]

BUSINESS SUMMARY  
Deep Down, Inc., an installation engineering and management company, operates in the offshore segment of the energy industry. It engages in the design, manufacture, fabricate, sale, and service of subsea equipments, surface equipments, and offshore rig equipments for use in deepwater, harsh environment, and severe service applications. The company's products include flying lead installation, maintenance and termination systems; buoyancy and rigging systems; high and low pressure testing and monitoring systems; latch systems; lay chutes; rollers; tensioners; and offshore storage and space management systems. It also provides installation management, retrieval, engineering services, support services, and storage management services for the subsea controls, umbilicals, and pipeline industries offshore. In addition, the company fabricates component parts, such as umbilicals, flowlines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems for subsea distribution systems; and assemblies that specialize in the development of offshore subsea fields and tie backs. It offers its services from the initial field conception phase, thru manufacturing, site integration testing, installation, topsides connections, and the final commissioning of a project. The company was founded in 1997 and is based in Channelview, Texas.

Share Structure:

O/S: 67,870,171 - Float: 6,055,207

Management's Pledge of No Dilution:

from the 8-K/A, 11/24/06:

SECTION 6.05. Obligations of Shareholder. Shareholder, on behalf of new management of MediQuip, unconditionally agree: (i) to refrain from the issuance of any securities pursuant to a registration statement on Form S-8 for a period of 12 months from and after the Effective Time (ii) not to change the number of issued or outstanding shares of capital stock of MediQuip by a stock split, stock dividend, combination, reclassification, reverse stock split, combination or reclassification of shares or other similar event for a period of 12 months from and after the Effective Time, and except as a condition to a listing of common stock on a national exchange, in which event the limitation period will be 6 months (iii) not to issue any equity securities to any person, firm or corporation for any purpose whatsoever for consideration less than the fair market value applicable to the nature of the transaction of such securities, and (iv) not to file a registration statement with the Securities and Exchange Commission on Form SB-2 or other similar form covering secondary offering of and class of equity securities prior to the expiration of 6 months from and after the Effective Time.

HEADLINES

http://biz.yahoo.com/prnews/070618/lam147.html?.v=2

http://biz.yahoo.com/prnews/070615/laf034.html?.v=96

CHART

[pompano]

CLIENT LIST FOR DPDW.OB


    Shell: Mensa
      Shell: Bullwinkle
      Shell: Macaroni
      Shell: Europa
      Shell: King
      Shell: Tahoe
     Amerada Hess: Conger
Exxon: Diana
Anadarko: N. Garnet
Exxon: Mica
     Amerada Hess: Northwestern
      Shell: Serrano Oregano
     Marathon: Arnold
      Texaco: Gemini
      BP: Nile
Exxon: Marshall Madison
      Chevron: Typhoon
      BP: Aspen
    Kerr McGee: Boomvang
    :: East Breaks
    Kerr McGee: Nansen
      Unocal: Pilsner
      Unocal: Ladybug
      Unocal: Corona
      Shell: Malampaya
      Shell: Einset
     Amerada Hess: Tulane
      BP: King
     Noble Energy: Lost Ark
      BP: Marlin I
      Shell: Manatee
      Shell: Crosby
      ENI: Morpeth
    Kerr McGee: Navajo
      Total: Canyon Express
     BHP: Boris
      Shell: Nakika
    Kerr McGee: West Navajo
      Shell: Bonga
      BP: King West
Exxon Mobil: Erha
Anadarko: Pardner
      Shell: Princess
      Shell: Mensa
   Nexen: Gunnison
     Cal Dive: Dominion
     Cal Dive: Swordfish
      BP: Kapok

[pompano]

NEWS

LOI TO AQUIRE MAKO

http://biz.yahoo.com/prnews/070621/lath102.html?.v=72

[pompano]

Based on the 2 new aquisitions here are some numbers to show how undervalued the PPS is.  How will the market react to this tomorrow?


i'm going to assume that the OS has expanded to 75M as a result of the stock used for the mako deal.

i'm going to use 15% margins because i think the rental business will have much higher ones than DPDW's core business.

here we go $29.74 earnings X .15 margins = 4.461M in net profit/75M OS = ~.06 eps

.06 x 20 p/e ratio = $1.20 price per share.

.06 x 25 p/e ratio + $1.50 price per share.

and historically DPDW has had a larger OS, 82.8M, and less revenues, ~8.8M, and lower margins (.111) so we historically have been granted a p/e ratio of ~34, based on a pps of .40, so....

using DPDW's historical p/e ratio and the current projected eps for 2007 we get .06 X 34 = $2.04 pps.

[pompano]

Hot, Hot, Hot. 

[pompano]

DPDW.OB about to go gangbusters per the weekly chart!!

[skooled]

1st close over $1..

[setravis]

A nice emerging growth issue.......
There are huge profits and DPDW is going much higher.
This is a 3-5 year long-term hold.
3 Indicators projecting bottom,2 positive divergences & RSI too low on the 3 month charts...Trend reversal short term very likely.
Too soon to know if this is...The major bottom ,but very likely will be confirmed in hindsight. Real $.51 to $.53 volume buyer on 2-11 based on t/a & excellent DD fundamentals. 
Park your profitable penny gains into this issue and other emerging companies for more stability and better than above average growth and build your portfolio one stock at a time.

Have a good day

[setravis]

52wk Range: 0.13 - 2.35
Volume: 2,440,701
Avg Vol (3m): 275,957

Technicals.......
Record Volume
Percentage Gainer


Momentum!!!

Press Release Source: Deep Down, Inc.


Deep Down Announces $2 Million in Contracts for Innovative Solutions
Friday February 15, 9:52 am ET


HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW - News) announced today that it has been awarded contracts to develop and manufacture unique, innovative solutions for two separate major offshore oil and gas operators. Deep Down is currently designing approximately $1.5 million worth of innovative subsea installation equipment to address its clients' critical issues over the next several months.


The first unique innovation is a Subsea Accumulator Module (SAM), consisting of Subsea Deployment Baskets (SDB) with attached accumulators, a built-in steel flying lead, a J-plate, and a Remote Operated Vehicle (ROV) panel. Several of these units will be shipped. The SAM has been designed so that it may be transported without a wide load permit and set on a vessel. Once on the vessel, the wings of the SDB can be retracted, and the system will be pre-charged with pressurized control fluid. Thereafter, the SDB can be simply lifted off the deck of the vessel and placed on the seabed. Once on the ocean floor, the vessel will lift and pull out the built-in steel flying lead from the SAM with its own down-line cable. A ROV will be used to guide the steel flying lead from the SAM and connect it to the Hydraulic Distribution Manifold (HDM). The ROV will be further deployed to open valves, wherein the SAM will provide plug-n-play subsea accumulation capabilities to augment the existing subsea distribution control system with localized volume and pressure control features. The SAM will also serve as an anode skid, designed to carry additional anodes. It will be grounded to the structure in order to provide additional cathodic protection to the HDM. The entire SAM can also be easily retrieved and serviced on deck, further improving the ability to retrieve subsea hardware.

The second innovation involves the development and manufacture of a unique deployment system to install very fragile, small-diameter fiber optic cables in deepwater environments. This deployment system will greatly reduce the amount of stress on the fiber optic cable during installation. The particular project involves the installation of approximately eight miles of fiber optic cable in 6000 feet of water. The specialized equipment can be placed on an installation contractor's vessel with minimal effort and provide a safe, quick method of efficient deployment.

"It is gratifying that major oil and gas operators, installation contractors, and control suppliers continue to contact Deep Down to develop innovative solutions for critical subsea issues and applications. It is a testament to our entire staff, including our engineers, fabricators, and installation crews. One of our key strengths is our ability to take an idea from a sketch on a piece of paper to a full 3-D solid works model, through fabrication, and a successful first-time installation in a relatively short period of time, often within 90 days," said Ronald E. Smith, Deep Down's President & CEO.

Deep Down recently provided a unique solution for critical issues confronting a third oil and gas operator. The Company installed specially designed, fully autonomous umbilical jacking system to lift up an existing steel tube umbilical on the ocean floor, which was then re-terminated. The solution and procedures provided by Deep Down allowed the operator to bring the well back on line in a fraction of the time that was otherwise envisioned. Another specialized solutions team is scheduled to depart offshore with a recently developed kit to clean a deep water J-tube, with open segments in the J-tube. These two projects add another approximately $500,000 in revenue.

About Deep Down, Inc.

Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.

The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.

The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys.

The Company's strategy is to consolidate service providers to the offshore industry, as well as designers and manufacturers of subsea, surface, and offshore rig equipment used by major, independent, and foreign national oil and gas companies in deep-water exploration and production of oil and gas throughout the world. Deep Down's customers include BP Petroleum, Royal Dutch Shell, Exxon Mobil Corporation, Devon Energy Corporation, Chevron Corporation, Anadarko Petroleum Corporation, Marathon Oil Corporation, Kerr-McGee Corporation, Nexen Inc., BHP, Amerada Hess, Helix, Oceaneering International, Inc., Subsea 7, Inc., Transocean Offshore, Diamond Offshore, Marinette Marine Corporation, Acergy, Veolia Environmental Services, Noble Energy Inc., Aker Kvaerner, Cameron, Oil States, Dril-Quip, Inc., Nexans, Cabett, JDR, and Duco, among others. For further company information, please visit http://www.deepdowninc.com and http://www.electrowaveusa.com.

Company information distributed through the Market Access Program is based upon information that Standard & Poor's considers to be reliable, but neither Standard & Poor's nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.

One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. Deep Down urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.




--------------------------------------------------------------------------------
Source: Deep Down, Inc.

[setravis]

EXECUTES STOCK PURCHASE AGREEMENT: Deep Down, Inc. (DPDW.OB) has executed a
Stock Purchase Agreement to purchase all of the outstanding capital stock of Flotation Technologies,
Inc. The total purchase price for the acquisition is expected to be approximately $23.3M.
Headquartered in Biddeford, Maine, Flotation Technologies is a designer and manufacturer of
deepwater buoyancy systems, specializing in Flotec(TM) syntactic foam and polyurethane elastomer
products.

[Ramsburg]

Interesting research note from Dahlman Rose:

June 16, 2008
Note # 6084
Reiterate Buy rating and $2.50 price target. Our $2.50 price target is derived using a 15x peer group EV/EBITDA multiple applied to our $32 million 2009 EBITDA estimate. While our target multiple is higher than the peer group average, we believe it is warranted given the high growth potential we anticipate at Deep Down this year and next.

[setravis]

Momentum !
This little pup made over a 700% run in 07...

Considering their impressive client list and appetite for future acquisitions within this emerging energy sector can not be overlooked in ones portfolio.


52wk Range: 0.13 - 2.35
Volume: 222,978
Avg Vol (3m): 275,957
Market Cap: 137.86M
P/E (ttm): 132.22
EPS (ttm): 0.01
Div & Yield: N/A (N/A)

Technicals
Last Price Quote is:
1.69%above 13-day MA
17.03%above 50-day MA

I just had to save you this post from a yahoo....

Also below is an all data chart...