DSS Inc (DSS)

[justlooking7777777]

Well, it's about time they made their move.

DSS jammed a $30 million convertible into the SHRG cap table.

If we had to guess, the note probably converts somewhere around $0.20 - $0.25, which is where SHRG was trading when the note was signed.

At what WE think is the number, $0.225, the note will convert into approximately 133.33 million shares of SHRG that DSS will then own.

Combine that with what DSS currently owns (62.4 million) and you get a total ownership position of 195.7 million.

Total Outstanding shares of SHRG???

196,800,000

Acquisition, DONE. "Passport to Happiness" indeed.

This will add $6MM immediately to the bottom line of DSS, giving it an EPS of around $0.22. Nothing else DSS owns is profitable, so throw a 50 multiple on the EPS and you a price target of around $11.00, in our opinion.

We're long DSS, but we would NOT be long SHRG, the top of SHRG has been determined and we do NOT think it's over $0.30.

Our position in SHRG is ZERO.

This is our opinion, go get your own.