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I know most of us know this stuff. Its just good to see the company PR firm putting out to the street.
News for 'DSS' - (*DJ Lexington Technology: DSS Shareholders to Vote June 20 on Proposals Related to Merger)
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
June 05, 2013 18:08 ET (22:08 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 06 08 PM EDT 06-05-13
News for 'DSS' - (*DJ Lexington Technology: Merger Will Provide DSS With About $7 Million in Cash if Approved)
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
June 05, 2013 18:10 ET (22:10 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 06 10 PM EDT 06-05-13
First real look at LTG's finances.
http://ih.advfn.com/p.php?pid=nmona&article=57869694&xref=newsalert
Just remember: The $7.1M Cash has changed to$6.25M per Marcum briefing. Everything else checks out to me at first glance.
Ouch on those legal expenses. If that packaging division can just break even this quarter in DSS they might show a very minor loss for the quarter which will be final merger related hit for both companies.
Nothing sweeter than a company bringing cash to the close instead of debt!! (Ok that is as close to my happy dance as you will get here)
Appreciate it my friend. I am on hold now at the DSS for just a bit seems to be some good rotation that way. The financials on this are unbelievable for such a small company. Looks to be a couple of companies, MGT being one that will have some legs down the road. I will keep my DD going.
Very interesting article regarding Patent suits. Of particular interest is:
"The U.S. Justice Department, the Federal Trade Commission and the Patent and Trademark Office have all said that infringement of these "standard essential patents" should mostly be punished by monetary charges, not sales bans.
An exception would be in the rare instances where the infringer refuses to negotiate a license or to pay.
The usual expectation among companies has been that standard essential patents will be inexpensively licensed to anyone."
http://finance.yahoo.com/news/u-itc-says-apple-infringes-212018585.html
As always, just information to put in knowledge banks. Have a great trading day tomorrow.
CHP,
Alas I seem to land where you are lately. Another new company for me to add to my watch list. Is there any chance they will increase O/S soon? Pretty good volume for so little shares but can be volatile I am sure. Initial DD so no opinions. I promise I am not stalking!
PI
Price 5/31/2012 2.74
Price 5/31/2013 2.94
Think we are pretty safe
Great Conversation. Very revealing (In a good way). I don't want to post as it may be taken as many different ways. Feel free to email if you want info. However, in regards to webcast he said he will take it forward. (LOL-take that for what its worth!)
Kim called and referred me to Peter Salkowski of Blue Shirt group. Looks like they will be handling investor related calls until merger. (I left message)They are 3 hours behind (San Fran)
I spoke with Phil Jones yesterday. I am waiting for return call due to the fact he is in meetings.
Thats probably who I spoke with but figured I was a little "small" to be a concern. I will verify today.
PI-I will call later today and make the suggestion. I will let you know after I call. Thanks
This has no issue with DSS. That is the beauty of being an operating company. The principals at DSS have been very clear for the past year that they are not just an IP play. What is interesting is whoever wrote the article on SA wants to compare DSS and VRNG and to me that is a travesty. These companies are not even close. Thats why I never liked SA, they just get part of the story for the benefit of whoever is writing article. Have a good one fello traders.
Not sure of his name. Nicole wasn't in and they referred me over to him. I think after 20 minutes of very detailed finance talkk I forgot where I was. I am going to try and reach Nicole later. Everything made sense to me but as you said earlier on big board, I don't think we have any worries.
Conversation:
I also stated that investors had been told that the minimum requirement was $2. He then pointed me to the NYSE MKT guidelines and stated that only applies if there is a market cap of greater than $50M. This is derived by the "available float" which is 19,200,000 multiplied by share price. The current price would have to be a minimum of $2.63 just to get that number if it applied. So at this point that is the best I can do. Hope it helps a bit. Thanks for all the info and posts and keep it up my friend. I am averaged in very well at $2.67 with a pretty good stake so as far as my spec play this is solid.
PI,
I am posting over here so as not to have 900 crazies come out of the woodwork. I spoke with DSS today and here was what I was told in regards to listing requirements. I was asking questions regarding financials of companies post merger and other items I will not bore you with. First I will address the $1M question. I was referred to page 3 of the prospectus:
It states that LTG will come to the merger with $7.25 Cash adjusted up to $1M for Virtual Agility payment $250K and other "professional fees and costs". (Mostly merger related) The amount of shares to be issued will be 6,250,000 divided by $3 for an aggregate of 2,083.334. They could have received up to 3,000,000 shares in the deal.
Listing Requirements: I was sent to several places as to listing amount ($3) in the prospectus. Based on not being profitable for the last three years here are the guidelines:
Regular Financial Guidelines. The American Stock Exchange requires pre-tax income of $750,000 for most recent fiscal year or two out of the most three recent fiscal years, a market value of public float of $3 million, an initial minimum bid price of $3 and stockholder's equity of $4 million. There are no operating history requirements under the regular financial guidelines.
Alternate Financial Guidelines. The American Stock Exchange also permits listing under its Alternate Financial Guidelines, provided a company has a market value of public float of $15 million, an initial minimum bid price of $3 and stockholder's equity of $4 million. The company must have a three-year operating history under this guideline, but there are no pre-tax income requirements.
We fall under the Alternate Financial Guidelines. (DSS has not been profitable in any of the last 3 years)
Now to his credit he did not seem worried about the $3 price. He pointed me to each "written" requirement. Obviously there is not a lot any of them can talk about due to pending merger.
Not sure if this is what was said to you but that was what I was told today when I called. Either way whether it is $2 or $3 I am not even worried here. My nature is to get very specific information when I talk to finance guys as I was one for a long time. LOL
This was from 2011 End of Year:
"While the Company did not have taxable income during 2011 and 2010, respectively," (p.23 SEC 10K filed March 2012)
Great Day to be alive!
I am not a big fan of seeking alpha and you could probably count on one hand the number of articles I actually have read. But surprisingly I was doing a little DD regarding the PIPE financing and low and behold I stumbled across this little diddy from December. It obviously needs to be updated with numbers as reflected per new merger docs but probably would help new investors with a round about way to value the company post merger. I am not saying it is perfect but its a pretty good SWAG IMO. Busy day in Gold and Silver so I am now just getting around to my one allotted post. (Just kidding). Perhaps highlander/postyle or one of the moderators would prefer commenting but seems pretty straight forward. Enjoy
http://seekingalpha.com/article/1054351-thoughts-on-document-security-systems-litigation-schedule-and-merger-adjusted-cap-structure#comments_header
LTM,
I think what a company will be worth is a dead argument in this sector. When I see a company that has not made one dollar be valued at 250M I give up. As far as Spangenberg , he owns 25% of LTG which will be merging with DSS, Our new COO for DSS is coming from IPNAV. I have no doubt that they are going to find the big one for Mara. Since I have been investing in this sector, almost all the successful companies had a partner they merged with. Any chance they are looking to perhaps acquire/merge another company? TIA
MARA is definitely in its infancy and at some point going to have their chance at the head of the table. What is interesting is that they have these settlements already done and no real love from the street, I agree that it would be ludicrous to effect the R/S before you hit at least $1. What appears to have gotten my attention is they are trying to create revenue through their patents, The stock needs to communicate to investors specific goals and objectives. I am fortunate to be in a new IP play getting ready for some pretty big events, DSS (They have 17M in revenue, They developed a cloud security program developed for the masses and its proprietary, Four key elements have significant ownership of LTG in the deal. Spangenberg (IPNAV). Owns 25% of LTG, Hudson Bay owns 35%, Iriquios 24% and David Frost and Barry Honig also own a piece. Some of these are the same player you have. The new COO og DSS was an emploee at IPNAV before taking over COO position. When LTG and DSS mrege officially this month they will have a veritable dream team. Size wise, I think MARA and DSS are much more linked. Two things right now separate them: DSS is an operational company creating sales, they are first to market on security product, and most importantly went after 5 specific companies even though more were available. MARA seems to have the same chops but is behind DSS in their timeline. I hope that MARA follows the DSS model as they seem to be doing well for such a small company. At some point I will take a position but it will be when the market is more liquid. This is a stock that you can invest in and just go away for a few months.
Yep-My guess though is they announce vote approving merger 6/21 (Friday) or 6/24 Monday.
The interesting part here is that IPNAV is a big owner of LTG. That bodes well for investment going forward despite the $$ they will make when merger is completed on 6/20.
PI, Any thoughts on ENZ. I stumbled on them recently regarding something else and had no idea they were involved in patent litigation. With 100M in sales and 30% institution ownership it might be a long termer.
I did forget one key thing...
DSS currently only has 21M O/S float. That is very small. Any pressure between 500K-1M would really affect this little guy. I have to remember the cart goes behind the horse. Good Luck on Monday and see everyone after close.
Noler,
I will check in during the day and try and do like I normally do but I tend to not pay much attention to MBs during run-up or run downs and I am sure all our moderators feel the same. I will check back at end of day to see if I can help but heck, its part of the game I guess. You guys run a pretty tight ship. Thanks
New Investors/Lurkers...
Everything you need to know about this company has been posted by Cooler. There is no hype just factual information that has been released to this point. I am not a "professional" trader but a conservative, profit oriented trader/investor. The stock is not heavily shorted (8%) and the company has very little debt. The biggest mistake you can make on a stock in this sector right now is to try and outsmart seasoned traders or MMs. NEVER get caught in any hype when investing. Do not rely on posters for investing advice. Remember the same MMs that loaded up to sell on a run up are the same guys buying that will sell to you when you are panicking on the way back down. If you are an "investor" then the daily green/red ticks should not matter. Good Luck and hopefully we can really enjoy the next couple months and see how it all plays out.
Although it is not your job to babysit people I have one simple request. As DSS enters into this new stage the PPS will, as all stocks do, increase and decrease accordingly. Since this is really the first MB I have taken any interest in, I would appreciate any and all efforts on your part to ensure we do not get crushed by P&Ders. Its going to happen and as these new names pop up I would suggest any new investors take a look at where they post and "what" they post. I know some of our moderators are involved on other boards and you probably know what stock I am talking about. Lets just try and keep this as an "information" board without days of incessant character attacks. On days the stock is moving I prefer just to check in and read relevant info without the BS. You guys have provided a great platform and by the amount of quality input, we have a great forum. Thanks QTM
Thanks-that is good by me for sure. Obviously they are the ones that are going to finally bring that to a head also.
PI, This is why I took my first jump into IP through DSS. They seem to have a revenue model which is unlike other IP plays. I am continually amused by the other IP players now talking about monetizing and licensing. 3Q is going to be a very active period here and it all starts with merger completed here at end of 2Q. Still very interested in that $1M. I think it was probably put to good use if you listen to both briefings. With the merger two and a half weeks away I think they will (and should) keep everything quiet. I guess at the end of the day, old fashioned models never go away. Revenue will always pay a premium over "possibilities". Looking forward to this week.
I am curious ...
where that $1M went. Not sure we will know since LTG is private. The only way I will be able to guess is if there was some deal completed OR they paid down DSS debt.
Marcum Presentation:
Let me start off by saying I like Jeff Ronaldi's background but he needs to get to toastmasters. I think Bzdick is just bad. Alas, information is key and I'll just take the delivery as is. Here is what I thought was important:
1. J.R. remarked right during presentation (big whiff) that the amount required for merger was wrong on the slide and was now $6.2M vs $7.2M. May not seem like much but that is an event worth noting nonetheless.
2. Virtual Agility product compliments the authentiguard line. Very nice and goes along with the stated goal of creating "operational income".
3. Major companies have approached LTG in regards to monetizing their assets. Once again another potential revenue stream.
4. He stated (I am rounding) That LTG was bringing $6.2M Cash, They did an earlier private placement to DSS of $3M and then the current settlements and in return they are receiving $20M in stock.
5. Someone asked who was authetiguard's main competition. Bdzick stated that there were no competitors and they are first to market and that the only thing on the market today is some type of suite/package that isn't close to capability of their product.
The rest was the same as California presentation. I did think my fellow NY'rs (Although I now live with an ocean view) were pretty tough on question part which I liked. It wasn't a Red Chip type of Q&A.
Link:
http://wsw.com/webcast/marcum/dss/
PI thank buddy. There is something to be said about a streamlined systematic approach. It was the COO at the Riley Conference who said based on results so far they have identified several other companies they are now looking at litigating against.
Highlander,
The IP sector is very new to me. (trading Not so much). I see this as a very viable sector but very much like the wild west. Please feel free to email me any companies I could look at as I always like to add powder to my ammo. Thanks for the response. I did make a promise that once this guy started moving my job as QTM was complete and the experts could have at it. LOL Thanks again.
chasshear@gmail.com
LOL, Cluck Cluck.
I assure you one thing my good friend, worry and this stock are not an issue. It is but one investment and I like free flow of information and discussion. This is your board and I will adhere to your requirements and behave myself.
PI quick question.
I have absolutely no concerns about R/S. What is the normal O/S # for a company entering into this stage for the IP sector. Although I am familiar with VRNG-MARA-PRKR-VHC from a DD standpoint how do they treat O/S as they evolve. (Probably not MARA as they are very very beginning stage)
Once again I am not a smart guy. I can only refer to page 113 where it specifically states what the requirement is. I realize what the actual vote requested but I leave for much smarter guys than myself to debate. As you already know, there are "basic" listing requirements but there are hundreds of pages of other "requirements" that must be met if they apply. As much as I love fundamentals I definitely am out of my league on MKT listing requirements. perhaps a good subject for the board to discuss so as to educate new investors.
Page 113 further states and I quote:
"The listing standards of the NYSE MKT require, among other things, a $3.00 per share minimum bid upon completion of the merger." Perhaps the investor relations should re-look at what they have sent out. Just saying. PI you are a good man buddy.
Yep but everything in the prospectus specifically states they must be at $3. You are correct though under standard 3 of AMEX listing we are good at $2.
p.112 of the prospectus they mailed states:
"If the DSS Common Stock continues to trade below $3 at the time of the merger, DSS anticipates that it may need to undertake a reverse stock split".
200 DMA (2.84) is big resistance spot. That is the same on last run-up. The last two times it crossed that it went above 3.10. I think its a little late in the day to break that level but heck what do I know..I was happy if we stayed above 2.64 today.
But I digress back to business.
The buyers are defending 2.80 with a vengeance right now. Very interesting for a Friday on our little guy. I have just done my normal Friday PM escape and now get to watch my favorite spec play in action.