Document Security Systems (DSS) is a developer, manufacturer and marketer of high tech plastic and paper items, along with infrared radio security, designed to prevent unauthorized scanning of magnetic stripes, counterfeiting, and related criminal activities. The company has a market capitalization of $80.66 million. It owns numerous patents to protect its technology, which is typically sold to financial institutions, large corporations, and governments. The stock has been volatile of late, and this volatility could present a great opportunity to investors. In this article, I will focus on the factors that have been causing this volatility, and how Document Security Systems could become a lucrative investment opportunity in the near future.After touching just over $5 per share in early February, the stock drifted downward unevenly through late May. The stock traded as low as $2.35 per share in late May. It then took off to over $4 per share by early June, then drifting lower again, to $3.68 per share on July 11. At the time of writing, it was up about 5% on the day, to $3.89 per share.
There has been some good fundamental news for the company recently. On June 19, it won a three year, $9 million contract from a large consumer products company. Other news in the second quarter of interest is that in mid-May, consulting group ipCapital put a present 10 year value of $245 million on the license marketing potential of Document Service System’s technology, assuming only modest market penetration.Effective marketing could easily advance that figure.To continue reading, click here.