Hi Creditman,
Like wolfdog explained, DSSI's does not have to move in parallel with TSEMF and there is no formula for its movements. DSSI's NAV (Net Asset Value) is, however, directly linked to TSEMF price. It owns 3.2 million shares and at $7 1/2 this means $24 million. Divide this by about 7 million DSSI shares outstanding (the company bought back about 200K), and you get $3.43 per share.
DSSI will usually trade at a discount to these holdings, unless it states that it will give these shares as a dividend (I mean a press release with a rough time table, and not George telling private investors on private phone calls because we can't take such statements to the bank, especially when they're coming from him).
Just for the record, DSSI has other assets so it trades at a huge discount, below are a couple of examples:
DSSI owns 78% of DSI which trades on the TASE, which has a market cap of about $6 million. That means another $4.5 million to DSSI NAV, or about $0.65 per share.
To these public holdings one should add its VAR subsidiary, which has revenues of about $20 million and is profitable. And we haven't even said one word about Comverge which is the wild card.
That's why I think that with a decent management team, the stock would move quite quickly, as we currently suffer from the "Morgenstern discount".
At these levels DSSI is quite attractive, and we could see somebody trying to throw George out and take care of business. With so many unhappy shareholders, all it takes is a small and focused group which will take a small stake and convince the others to support the move.
If such a group steps up to the plate (and as long as they have good intentions that will benefit shareholders), I'll definitely support them. We might not have to wait too long... I heard of investors who are already checking things out. Maybe someone will make a move.
I guess we'll have to wait and see.
BTW, I'm not surprised that many are looking into such a move, as the company's assets are most compelling. Even an average CEO (George is far from being average) can make something out of this company, and get the stock to much higher levels.
OT: With regards to FLSHF, that new DiscOnChip is targeted to a big market (Internet Access Devices), with many applications, such as cable set-top boxes, web-phones, car-PC's, thin clients and NetPC's, smart cell phones, new generations of palm-tops and other Win CE applications (where the DOC Millenium is a plug-n-play solution).
Omer |
