DSKX Major Acquisition(NASDAQ: DSKX) – Research Report
Company Name: DS Healthcare Group Inc.
Stock Symbol: DSKX Company Website: www.dslaboratories.com
Trading at $1.53 Per Share (02/16/2016)
Currently DSKX has a very attractive valuation with high analyst ratings, hedge fund interest, strengthened management team and major upcoming catalyst. DSKX is trading at a 33M market cap while they are expected to close on a major acquisition which is expected to increase the company’s annual revenues to approximately $65 million and $10 million in EBITDA with the combined businesses from over 20 countries, 900 unique and diversified products, and a broad range of personal care categories. This acquisition fiercely scales up and expands DS Healthcare’s business operations, product portfolio and distribution network in one deal. With the deal in place, DSKX is trading well below 1x expected annual sales while in the recent years many of its competitors in the industry sold at approximately 5x sales. Nioxin, Chattem, Simple Health & Beauty just to name a few.
Several weeks ago, Frigate Ventures LP filed a SC 13G. In the filing, it appears Frigate Ventures LP owns 1,500,000 shares of DSKX. This shows Frigate Ventures Lp’s confidence and optimism in the future of the company and as a institutional investor with an excellent track record, its safe to assume they do their homework before buying a 7.1% stake in a company.
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