DSS Inc (DSS)

[Chas1961]

Noler's Sunday Rant!!!

I am finally getting my wits about me since my recent illness I have went back to what I do best and tried to figure out what I feel the real value of DSS is. I decided to go back to 1st quarter financials to see if there was anything that stood out. To be honest, these old DSS guys were just plain horrible in regards to managing a company. Going all the way back to 2008 they have been a non-profitable enterprise. My guess is that when they went after the ECB and others, this was like an IP play of today. (Pure speculation!). Then following it up with the coupons.com litigation this thing was just plain horribly over valued IMO. But I digress.

If you just on the surface take the PPS on 5/16/2013 (Day after the earnings were released) the stock price was 2.79. Doing nothing else I would then say we doubled the float and the value is 1.395. However, there are several factors to take into consideration; 1. Post merger the company had an additional 6.25M cash infusion. 2. The legal fees that amounted to 415K are now going to be gone. 3. That stock based compensation cost of post merger warrants $340K will also be gone. That would have been a loss of only $382K for the quarter if nothing else changes. I am hoping to see 2Q loss of under $1M when they release earnings. Every matrix I would use to value the company is a negative number. (ROE/ROA/ROI)

However there is a silver lining IMO.

1. Beginning in the 3Q we have 3 settlements that will add to the bottom line.

2. I believe there will be additional sales of the Authentiguard line.

3. Probably 1-2 acquisitions of IP.

4. Before the end of this year I believe at a minimum the packaging division will be sold. I also think printing is a tough business and that one is borderline.

5. The company is going to morph from a commodity based company to a tech/IP type company.

There has not been one iota of negative data from the company. I have to believe if there was they would have pushed that out on day one. There has been selling and lots of it. Every time I think I know where the bottom is it goes further down. There has been buying do not think there hasn't. Only the MMs see the real story on their screens and I think it will be blatantly obvious when the selling is complete.

Looks like Salesforce is going to be busy since 3 separate IP suits hit them this year. (Advanced Dynamic, Virtual Agility, Bascom). They really haven't had a whole lot of litigation against them so it should be interesting to see how it plays out.

Around mid August most institutions have to report their holdings. Whether you want to check DSS or another stock just go to this site and see who is playing in the stock. I usually only go their about reporting time to look for changes.

https://whalewisdom.com/stock/dss

I may not be posting as much since I do not see much need to dribble on unless I can add value to the conversation. (Plus I am in the middle of several very fast movers!) I believe in DSS and will pile in at first solid uptick. GLTA