DSS Inc (NYSE American: DSS) has three IPO spinoffs planned for 2023 – is it on your watch list?
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By Ernest Dela Aglanu, Benzinga
Since 2019, when DSS Inc. (NYSE American: DSS) embarked on a major transformational journey, the company has grown into a multinational corporation operating businesses in nine divisions with over 40 subsidiaries.
Headquartered in New York, the company has built strong market positions in product packaging, biotechnology, direct marketing, commercial lending, securities and investment management, alternative commerce, digital transformation, safe living and alternative energy.
These nine divisions and 40 subsidiaries offer innovative, flexible and practical solutions that not only provide mutual benefits for companies and their customers, but also create sustainable value and opportunities for transformation and value creation
A study of the company’s website and investor deck shows growth in various market sectors driven by an “incubator” strategy of acquiring and developing assets to add shareholder value through calculated IPO spinoffs and a parametric stock allocation strategy increase.(??)
A closer look at DSS’ finances
This strategy appears to be having a positive impact on DSS’ financial position. A due diligence review of the company’s financials shows that the company’s total net asset value (NAV) as of September 30 last year was $182.6 million, or $1.31 NAV per share. Revenue for the third quarter of 2022 exploded an astronomical 172% quarter-over-quarter, with total assets estimated at $264 million, a significant increase from December 2019’s $20 million in assets.
On March 10, 2023, the market capitalization of DSS was $33.5 million ($0.24/share), meaning that the shares are trading at a discount of approximately 80% to the September 30 NAV per share of 1.31 be traded in USD.
The company’s revenue for the third quarter of 2022 was more than $35.9 million compared to $13.2 million for the same quarter of 2021, an increase of 170%.
The market potential could be enormous
DSS believes that the markets in which it operates have near-unlimited potential and the opportunities in several high-growth markets are endless, primarily because companies in these sectors are contemporary, scalable and offer recurring revenue streams.
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The market size of product packaging is expected to exceed $1.3 trillion by 2028. The biotechnology market is expected to be worth around $3.44 trillion by 2030.
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Direct marketing is a $180 billion global business and is expected to experience double-digit growth for the fifth year in 2023, driven by the new gig economy.
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Commercial lending growth hit a 14-year high in 2022, and the market size valued at over $8 billion in 2020 is expected to reach nearly $30 billion by 2030.
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Securities are a high-growth sector with $70 trillion in revenue, and REIT earnings rose 24.6% over the past year.
DSS certainly appears to have a focused strategy to continue creating shareholder value. The company says it’s doing this by focusing on key areas for growth, such as: B. Developing solid revenue growth, increasing profitability and growing assets that drive the share price and market capitalization.
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Asset Purchase – Securing businesses and infrastructure to generate revenue.
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Business Optimization – Identifying business needs, providing financial resources and empowering and incentivizing subsidiary management teams to succeed.
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Positive EBITDA – Achieving positive earnings before interest, taxes, depreciation and amortization (EBITDA) by creating economies of scale and generating revenue in these companies.
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Public Offerings – Sharing success with existing and new shareholders by paying regular stock dividends as spin-offs from subsidiaries in an initial public offering (IPO).
Monetizing growth in key sectors
DSS acquires ownership positions or fully acquires companies in high-growth sectors to monetize its holdings.
The Company reports that by transforming its revenue streams into exponential and emerging new businesses, operating the business to create growth opportunities and scalable and recurring revenue, and restructuring and developing assets to position them for growth and potential monetization, DSS will eventually more will create corporate value.
With companies like Johnson & Johnson (NYSE: JNJ), General Electric Company (NYSE: GE), and 3M Co. (NYSE: MMM) making headlines recently for shareholder spinoff opportunities, one of the most unique aspects of DSS is for investors, his strategy could be of incubating and then spinning off companies under his wing that automatically provide investors with pure-play tickers just by owning shares of DSS.
This article was originally published here on Benzinga.
DSS is a multinational corporation that operates businesses in nine business areas: Product Packaging, Biotechnology, Direct Marketing, Commercial Lending, Securities and Investment Management, Alternative Commerce, Digital Transformation, Safe Living and Alternative Energy. DSS strategically acquires and develops assets to increase shareholder value through calculated IPO spinoffs and a parametric stock allocation strategy. Since 2019, under new leadership, DSS has laid the necessary foundation for achievable growth by building a diversified portfolio of companies positioned to enhance profitability across multiple high-growth sectors. These companies offer innovative, flexible and real-world solutions that not only deliver mutual benefits for businesses and their customers, but also create sustainable value and opportunities for transformation.
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