DSS Inc (DSS)

[justlooking7777777]

Simply brilliant. DSS (controlled by Chan) is buying yet ANOTHER one of his own companies (HWH) for $15 million dollars (or stock equivalent). Chan continues to squeeze the crap out of capitalism.

Let's prognosticate. Normally, we would assume a purchase price based on a factor of at least 3-4X revenue, but with this company, everything's an incestual relationship/transaction in our opinion, so it could be nominally different.

We're willing to go with 2X. We'll use SHRG's profit margin of about 7% (which may be a bit low), so we'll go with 10%. Plowing those into the cruncher, we estimate a net operating income of about $750,000, which dictates a 20X purchase price on earnings.

We think that's pretty high (see above), but it comes with the assumption that the HWH product line will be absorbed into the SHRG network, propelling sales and income. We also think that revenue could be greater than $7.5 million. To maintain our opinion, we still think the Company is a slimy outfit, but this deal is not financially horrible IF we are close to our assumptions.

Post-acquisition, it could possibly make DSS..errrr...Alset slightly profitable finally. In addition, integrating this new consumer product line may have an associated revenue effect on the DSS packaging and AC biz, IF Chan involves them at all.

Overvalued at a $38MM market cap, there's still some missing pieces we need to see.

BTW, this stuff's our opinion, do your own research.