Hoping someone smarter than me can chime in. Looking at Document Security Systems (DSS). I'm new at this.
It is basically a company that buys and sells other companies in various industries. They recently closed 50 million bucks in a public offering, and they bought a few companies and the executive chairman seems pretty bullish cuz he bought a chunk of shares all around the same time.
They have a ton of cash, their Current Ratio is great, their P/E is great. Their numbers look good to my limited understanding.
The leadership team seems to have swapped over in 2019. They grabbed the COO from one of their acquisitions, Premier Packaging Corporation, which also seems to be driving a good chunk of their revenue. Seems that he is working to help the other companies in the portfolio do what he did for the packaging company. He's the business guy on the leadership team. The rest seem to be savy financial guys and lawyers.
It really seems like the company did a big transition in 2019 and it sounds like they are making smart plays. My only concern is that they have issued closed public offerings of common stock 6 times since 2019. Usually small amounts, like 3 to 6 million, but the last 2 were bigger, 30 and 50 million.
I'll admit, I'm not 100% on what this will eventually mean if I buy. From my understanding, if I owned stock, my ownership percentage would be diluted, but my share price would stay the same unless normal things happen to lower a share price. Since I don't really participate in voting or anything, all this means to me is that the company I invested in has more capital, which if the business model is to buy and boost companies, that seems like a good thing.
So, why shouldn't I buy this stock? What am I being too dumb to see?
Thanks for helping me here. I'm trying to get better at my dd. figured opening my mouth here and potentially sounding like an idiot is a good way to learn!
Submitted June 27, 2021 at 05:41AM by szabon331 https://ift.tt/2SvEgS1
