(NewsDirect)
By Ernest Dela Aglanu, Benzinga
A company with aninvestment style seemingly similar to the legendary BerkshireHathaway Inc. (NYSE: BRK.A) is reporting significant gains in itsportfolio of companies going through IPOs, uplists, and spinoffs.Berkshire Hathaway, best known for its CEO Warren Buffet, one of theworld’s wealthiest men and the “Oracle of Omaha”, owns bigstakes in businesses in insurance, distribution, manufacturing,retailing, rail transportation, energy generation, and more.
Insurance generates themost revenue for the company, but manufacturing generates the mostearnings before taxes.
Berkshire Hathaway’s stock is the mostexpensive stock on Nasdaq. On February 24, the stock waspriced at $456,460 and currently has a market capitalization of about$670 billion. The company’s stock is so expensive that a singleshare is worth more than a house in many parts of the U.S.
AFast Rising Alternative?
If you are an avid follower of Berkshire Hathaway’s businessmodel and intrigued by how many businesses it has fostered, the name DSS, Inc. (NYSE American: DSS) could warrant attention.
Unlike Warren Buffet’scompany, which owns pure-play companies like Geico, DSS is not an investmentfirm but rather an incubator–building and spinning off companieswith the goal of giving retail investors pure-play opportunities foradditional stock.
For some context, a spinoff occurs when a company splits off a portion of its business into aseparate company and distributes shares of the new entity tax-free tothe parent company’s shareholders. Some prominent companies thathave pursued spinoffs include GeneralElectric Company (NYSE: GE), Johnson & Johnson (NYSE: JNJ), and 3M Co. (NYSE: MMM). In joining these bigplayers, DSS has evolved into a multi-industry business growingthrough acquisitions.
The company has a diversified portfolio including biotech, aREIT focusing on healthcare facilities, a bank, and an alternativetrading platform for token exchange, amongst other targetedbusinesses.
Thecompany’s Net Asset Value as of September 30 last year was $182.6million, while Net Asset Value (NAV) per share was $1.31. Revenueswere up by 172% year-on-year, total assets were $264 million, andasset growth was over 200%.
DSS reports that its diversified ,sustainable businesses driving strong cash flow and profitability aremainly:
PremierPackaging Corporation — Innovative product and consumerpackaging solutions.
Impact Biomedical — Developing and acquiring companiesand assets in biotech/healthcare.
Decentralized Sharing Systems —Peer-to-peer decentralized distribution marketplace and directmarketing model
DSS PureAir — Advanced technology that providesinnovative, high-quality air and surface purification andfiltration
American Pacific Bancorp — Provides a complete rangeof banking and lending services
DSS Securities — Investing and acquiringin fund management and market-making firm. Currently, with $1.7billion assets under management.
American Medical REIT — Medical REITtargets hospitals and acute care facilities in secondary and tertiarymarkets.
Digital Securities Exchange — Developing and acquiringassets in securities trading and management, including digital assetexchanges and utility token exchanges.
Spinoffs With The GoalOf Giving Investors Pure-Play Opportunities
A Zacks Small-CapResearch report released in September 2022 revealed that DSS plans three (3) spinoffs in thenext nine months: Impact Biomedical, American Pacific Bancorp, andAmerican Medical REIT, with the first one, Impact Biomedical,potentially worth up to $160 million. The imminent spinoff of ImpactBiomedical (its red herring has been filed) is in the comments phasewith the U.S. Securities and Exchange Commission (SEC) with theeventual spinoff expected in the next quarter.
Impact Biomedical isexpected to file an amended S-1 and have a record date set in Q2 andcould IPO within the next two quarters. The company’s valuation isexpected to be determined by the bankers and the markets.
DSS believes a spinoffof American Pacific Bancorp could happen quickly as it is a far lesscomplicated entity — the spinoff could be executed by as early asthe third quarter of 2023.
“We expect it would be valued at the typical fourto five times loans outstanding for commercial lenders, whichcurrently stand at $40 million, thus valuing it at $160 million to$200 million. We believe it is earning approximately 10% on average onits loans. DSS’s current enterprise value is now $65 million,” thecompany said.
AMREREIT, on the other hand, has an 8% cap rate and is expected to reach$200 million to $250 million in assets before IPO’ing, which DSSanticipates could happen in Q3 of 2023. Again, this IPO process willprovide DSS shareholders with a “no-cost” investment in aseparately traded company.
DSS says it plans to retain at least 50% of eachentity in all three cases — the same will apply for future spinoffsbeyond the initial three— but the Company assures shareholders wouldget a certain percentage. New shares will be issued to raise capitalto support the growth of each newly public company.
DSS appears to be acompany that offers investors the opportunity to acquire a portfolioof curated pure-play companies in the form of stock dividends. Insimple terms, when one of DSS’s companies goes public, if you ownDSS stock, you’ll get their stock automatically, too — and benefitfrom individual increases in shareholder value with each spinoff. AsDSS executes its business plan, more investors will most likely learnof these periodic spinoffs to participate in these ongoing stockdividends.
Thisarticle 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.
This post contains sponsored advertisingcontent. This content is for informational purposes only and is notintended to be investing advice
ContactDetails
Rick Lutz- TraDigital IR
CompanyWebsite
Copyright (c) 2023 TheNewswire - All rights reserved.