AAPL 190.415 0.3663% MSFT 422.65 -0.1016% GOOG 175.36 0.8512% GOOGL 174.14 0.9449% AMZN 185.71 -0.1505% NVDA 943.46 -0.3001% META 473.555 -1.6582% TSLA 174.87 0.5058% TSM 154.06 -0.977% LLY 776.1758 -1.3779% V 280.145 -0.2972% AVGO 1436.4972 0.0228% JPM 204.205 1.0366% UNH 522.225 0.9033% NVO 133.03 -1.2105% WMT 63.485 6.109% LVMUY 170.79 -0.2511% XOM 117.87 -0.5988% LVMHF 855.728 -0.1473% MA 461.6867 0.805%

small-cap

Should You Exit This Industrial Stock- DSS

Mar 01, 2022 | Team Kalkine
Should You Exit This Industrial Stock- DSS

 

DSS, Inc.

DSS, Inc. (NYSE: DSS): DSS, Inc. operates in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, securitized digital assets, securities trading and fund management, banking, lending, and finance businesses worldwide.

Why should Investors Book Profits?

  • Widened Losses: In Q3 FY21, the Company's operating loss was USD 5.54 million compared to USD 2.57 million in Q3 FY20 due to high selling, general and administration overheads.
  • Customer Concentration Risk: The Company's primary revenue comes from two customers, and if one of them loses business, the Company's revenue will suffer, posing a liquidity risk.
  • Product Assurance Risk: Certain of the Company's recently created products have not yet received market acceptance, and there is a risk of assurance, which might harm financial results.
  • Ukraine Tension: The mounting concern over the Russian invasion of Ukraine could have a weigh on the global equity market and valuation. Companies with lower competitive moat could witness panic sell-off on the back of rising uncertainties.
  • Long-term Bearish Trend: Despite a significant jump in one trading session, its shares are still trading well below the its crucial long-term support level of 200-day SMA, implies a long-term bearish trend in the stock.

Stock Recommendation:

DSS stocks have been heavily beaten down on the street over the past six months, given its poor financial performance, operating losses and bottom line losses. Further, amid a volatile market condition, it would be wise to stick with fundamentally strong company rather than the weak one.

Also, DSS’s share price mostly tilted towards its 52W Low   (52-week H/L range USD 4.67 and USD 0.33) and trading well below its crucial long-term support level of 200-day SMAs, a long-term bearish trend. Based on the continuous losses, Ukraine crisis, regulation risk, unfavourable technical indicators, and current valuation, we recommend a “SELL" rating on the stock at the closing price of USD 0.66, up ~72%, as of February 28, 2022 at 01:45 PM ET.

Technical Price Chart (as of February 28, 2022, at 01:45 PM ET). Source: REFINITIV, Analysis by Kalkine Group

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.