Georgi Kamburov

Dakota Plains Holdings, Inc. (OTCBB:DAKP) Plummets After Train Crash

by Georgi Kamburov July 10, 2013
DAKPchart.pngYesterday Dakota Plains Holdings, Inc (OTCBB:DAKP, DAKP message board) suffered through a disastrous session. The stock of the company plunged downwards losing 20%, or around half a dollar in value. The drop began right from the opening bell of the market and by the time it managed to stabilize in the afternoon it was a bit too late as the price had already fallen to $2 per share. Traded volume almost reached 500 thousand, such a high number wasn't seen by the company in the last two months.

DAKP are a midstream energy company offering a host of different crude oil services through a couple of joint ventures. They are primarily concentrated on the marketing, transloading and trucking of crude oil. Despite the stable balance sheet the stock of DKAP has dropped form $4 to $2 in a little more than a month.

The last negative close was caused mainly by the deadly train crash in Lac-Megantic, Quebec over the weekend. The trains were carrying crude oil sold by one of the subsidiaries of World Fuel Services Corp. DAKP have a joint venture established with Petroleum Transport Solutions, LLC, an indirect wholly owned subsidiary of World Fuel and owns facilities in the Bakken shale field where the derailed trains were filled.

Excluding this unfortunate accident the company has been able to improve tremendously on their financial situation. For the first quarter of 2013 they disclosed:

  • $658 thousand cash
  • $2.4 million total current assets
  • $6.4 million total current liabilities
  • $2.5 million income
  • $588 thousand net income

DAKP is not only generating revenues but also have something rarely seen in pennyland- a positive bottom line. The most staggering difference can be observed when you compare the current results with the ones from the same period last year when the company reported a massive net loss of $15 million. An important sign for investors should also be the lack of any pump campaigns recorded in the history of the company.

9VDSCchart.pngThey have been supporting a price doubling the current $2 for most of 2013 so the ticker may be able to recover the ground it lost. Especially if the current dip inspires some valley buying from investors.

Yesterday's session was a disaster for the stock of ALAS International Holdings, Inc. (OTCMKTS:VDSC). The ticker couldn't withstand the pressure of the current promotion and crashed hard losing nearly 40% in a single day. iTalk Inc. (OTCBB:TALK) are still unable to recover after the end of the pump and are sliding further down to the bottom.

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