DSS - DSS Inc (NYSE American: DSS) Has Three IPO Spinoffs Planned For 2023 — Is It On Your Watchlist?
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By Ernest Dela Aglanu, Benzinga
Since 2019 when DSSInc. (NYSE American: DSS) embarked on a major transformationjourney, the company has evolved into a multinational companyoperating businesses in nine divisions with over 40subsidiaries.
Headquartered in New York, the company has developed strongmarket positions in product packaging, biotechnology, directmarketing, commercial lending, securities, and investment management,alternative trading, digital transformation, secure living, andalternative energy.
These nine divisions and 40 subsidiaries offer innovative,flexible, and real-world solutions that not only provide mutualbenefits for businesses and their customers but also createsustainable value and opportunity for transformation and valuecreation
A studyof the company’s website and investordeck reveals growth in diverse market sectors which is beingfueled by an “incubator” strategy of acquiring and developingassets to enhance shareholder value through calculated IPO spinoffsand a parametric share distribution strategy.(??)
A Closer LookAt DSS’s Financials
This strategy appears to be having a positive impact on DSS’sfinancials. A due diligence dive into the company’s financials showthat the company’s total Net Asset Value (NAV) as of September 30last year was $182.6 million, or $1.31 NAV per Share. Third Quarter2022 revenues ballooned astronomically by 172% Quarter to Quarter,total assets were valued at $264 million, up significantly from the$20 million in assets as of December 2019.
As of March 10th, 2023, DSS’s Market Cap was$33.5 million ($0.24/share) meaning shares are trading atapproximately an 80% discount from September 30th’s NAV per share of$1.31.
Thecompany’s revenue for Q3 2022 was more than $35.9 million, comparedto $13.2 million in the same quarter of 2021, representing a 170%increase.
Market Potential Could Be Massive
DSS believes that themarkets the company operates in have nearly unlimited potential, andthe opportunities within multiple high-growth markets are endless,predominantly because entities within these sectors are contemporary,scalable, and offer recurring revenue streams.
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Product packaging is projected to surpass $1.3 trillion inmarket size by 2028. The biotechnology market is expected to be wortharound $3.44 trillion by 2030.
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Direct Marketing is a global business generating approximately$180 billion and is projected to have its fifth year of double-digitgrowth in 2023 spurred by the new Gig Economy.
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Commercial Lending Growth was at a 14-YearHigh in 2022, and the market size valued at over $8 billion in 2020 isprojected to reach almost $30 billion by 2030.
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Securities is ahigh-growth sector of $70 trillion, and REITs earnings increased 24.6%this past year.
DSS certainly seems to be following a focused strategy tocontinue to create shareholder value. The company says it achievesthis by focusing on key areas for growth, such as developing solidrevenue growth, increasing profitability, and growing assets thatdrive stock price and market cap.
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Buying Assets -Securing businesses and infrastructure to generate revenue.
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Business Optimization -Identifying business needs, providing financial resources, andempowering and incentivizing the management teams of the subsidiarybusinesses to be successful.
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Positive EBITDA - Achieving positive earnings before interest,taxes, depreciation, and amortization (EBITDA) by creating economiesof scale and revenue generation within those businesses.
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PublicOfferings - Sharing success with existing and new shareholders throughthe periodic distribution of stock dividends as subsidiary spinoffsthrough an Initial Public Offering (IPO).
MonetizingGrowth In Key Sectors
DSS is acquiring ownership positions or fully acquiringbusinesses in high-growth sectors to monetize its holdings.
The company reports thatby transitioning its revenue streams into exponential and emerging newbusiness lines, operating the business to create growth opportunitiesand scalable and recurring revenue, and restructuring and developingassets to position them for growth and potential monetization, DSSwill eventually be creating more shareholder value.
With companies like Johnson & Johnson (NYSE: JNJ), General ElectricCompany (NYSE: GE), and 3M Co. (NYSE: MMM) recently makingheadlines due to spinoff opportunities for shareholders, one of themost unique aspects of DSS for investors could be its strategy ofincubation and subsequent spinoff of companies under its wing,automatically providing investors with pure-play tickers just byowning shares of DSS.
This article was originally published on Benzinga here .
DSSis a multinational company operating businesses within nine divisions:Product Packaging, Biotechnology, Direct Marketing, CommercialLending, Securities and Investment Management, Alternative Trading,Digital Transformation, Secure Living, and Alternative Energy. DSSstrategically acquires and develops assets to enrich the value of itsshareholders through calculated IPO spinoffs and a parametric sharedistribution strategy. Since 2019, under the guidance of newleadership, DSS has built the necessary foundation for achievablegrowth through the formation of a diversified portfolio of companiespositioned to drive profitability in multiple high growth sectors.These companies offer innovative, flexible, and real-world solutionsthat not only provide mutual benefits for businesses and theircustomers, but also create sustainable value and opportunity fortransformation.
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