posted
to be more specific, this is how i see it .. just a guess whats going on here.. another persons opinion.
Thats not how CD conversions work.
The 300 million shares were not bought they were registered by the CD holder on the open market,
The CD holder already bought the shares when they loaned the company money several years back. Now the company is in default on their payment to the CD holders so they are excersising their right to the shares per the agreement.
What you witnessed is the registration of the shares and the amount of the conversion is their cost bases. They haven't sold the shares they now are holders just like you and me and will want to sell them at a higher price.
This has been going on for the last 8 or nine months. The volume is not realistic because it is not true retail buyers.
Posts: 6397 | Registered: Jan 2006
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posted
I have a couple of questions and observations about recent (May 19, 2006) 1st Q report and SC 13G filing on (02/14/06).
1st - there is a big to-do about the Revenues growing by 485 percent, but are they speaking about K's or M's of $'s here?
2nd - even though the "operating losses" are declining, why does the "Profit" not offset it completely? are we speaking apples and oranges?
3rd and MOSTLY - if you do the math, with the number of common shares the CO has with the stated percent it amounts to of the total, then there is about 3.3B outstanding shares.
Just thought I'd add this to the equation to see what the recomendation is.
-------------------- Hi-ho Momo, awayyyy... Posts: 871 | From: So. Cal | Registered: May 2006
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I think you have partially hit the crux of the situation when you ask if growth is in K or M.
To answer your questions I will quote from the latest 10Q released on 5/17/06:
quote:THREE MONTHS ENDED MARCH 31, 2006 COMPARED TO THREE MONTHS ENDED MARCH 31, 2005
Revenues for the three months ended March 31, 2006 of $870,964 increased $722,089 or 485% from the three months ended March 31, 2005 (restated). DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended March 31, 2006 was $293,342 an increase of $248,640 or 556% from the three months ended March 31, 2005 (restated). The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the three months ended March 31, 2006 was 34% of total revenues.
Operating expenses increased $401,341 or 139% during the three months ended March 31, 2006 versus the three months ended March 31, 2005 (restated). This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
General and Administrative expenses for the three months ended March 31, 2006 were $618,892 compared $259,701 for the months ended March 31, 2005 (restated) for an increase of $359,191 or 138%. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Sales and Marketing expenses increased $19,474 for the three months ended March 31, 2006 from $25,332 in 2005 to 44,806 in 2006 or a 77% increase. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Research and development for the three months ended March 31, 2006 was $26,524 compared to $3,848 for the same period prior year for an increase of $22,676 or a 589% increase, which was due in part to the purchase of CGM Applied Security Technology, Inc in March 2005.
The net (loss) for DDSI increased 8% for the three months ended March 31, 2006 to $(1,897,872) from $(1,751,701) for the three months ended March 31, 2005 (restated). This was primarily due to the increase in operating expenses.
Net cash (used in) operating activities for the three months ended March 31, 2006 and the three months ended March 31, 2005 (restated) was ($195,102) and ($700,566), respectively. The increase in cash (used in) operating activities for the three months ended March 31, 2006 of $505,464. This increase was due in part to the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash provided by investing activities was $0 and ($1,500,000) for the three months ended March 31, 2006 and March 31, 2005 (restated), respectively. This increase was due in part to the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash provided by (used in) financing activities was $(0) and $(6,285) for the three months ended March 31, 2006 and the three months ended March 31, 2005, respectively. The increase in net cash provided by financing activities for the three months ended March 31, 2006 was $6,285.
If you see the reoccuring theme here
quote: This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
it isn't hard to figure out the CGM was the saving grace for this company but at the same time it has also proved a large burden financially.
My belief is that income has increased substantially but not enough to cover all the bases of previous expenditures. The CD's are holding us down...but they are also removing debt from the bottom line which is a good thing. Sucks that it is at our expense but if this company doesn't grow...that won't help us much either.
Profit IS offsetting operating expenses. But it hasn't grown "enough" to do it completely yet..especially with the back debt they owe. Once they can get over the back debt they will really begin to move forward and so shall we. (One Juicey Government Contract could completely change this company's financial picture. They are in debt but it isn't overwhelming).
As to your math...I'm not sure where you are coming from there.
Outstanding Shares as of 5/05/06 are 7,438,023,814 per the website.
Could you show me your math as I am not getting anywhere near your result.
The company has a future and our investment has a future, but there is work to be done. They have gotten a second chance at life with the purchase of CGM and they have stated that they are increasing their focus in sales and marketing which is exactly what they need to do to bring themselves into the black.
The big homerun is likely a ways off yet but I would not be surprised to see mini runs happening with every release this company puts out. Get your shares, sell on the runs until you have a free share position you are comfortable with, and sit tight.
We all know this company is worth more than where it is sitting. They just need to prove to the community that they aren't giong to let their past debt drag them down. Once that is accomplished...This will be a prime stock to own.
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
Hi BigFoot, Sorry I should have gone to the website, I'm sure that their numbers are right. I was going off these numbers that I found on this Document:
SC 13G/A An amendment to the SC 13G filing 02/14/06 (Page 2)(the stock class is common stock per p.1)
9. Aggregate Amount Beneficially Owned by Each Reporting Person 157,346,680 -------------------------------------------------------------------------------- 10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) [_] -------------------------------------------------------------------------------- 11. Percent of Class Represented by Amount in Row (9) 4.815% -------------------------------------------------------------------------------- 12. Type of Reporting Person (See Instructions) CO
-------------------- Hi-ho Momo, awayyyy... Posts: 871 | From: So. Cal | Registered: May 2006
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-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
I do like to come here to read some positives to what is happening even though the issue is being minippulated to death!
I cannot see how the whole float has traded several times and there must be many holder's that bought in at .0004-.0005 and there shall need to be a fewe high days of buying with the CDer's\Shorters out for this to make it up over .0006 .
I have to wonder when it will happen. Like all these issues down here they run when the MM's and the Bigger Players wish them to.They leave a cycle that goes on and on I guess from what I gather.
This issue sounded better thsn most I have ever looked at down here so I ttook a chance. I really hope it works out for all longs.
I do not know much about Fundermentals and wish I had ,as I did not know about these CDer's.
Very frusstrating to watch and not know what might happen now.
Posts: 180 | From: Maine | Registered: Apr 2006
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posted
maybe we can hope for a miracle and this affects ddsi.. i would love to know what companies he has in mind here.. hmmmm
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.
Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn't be immediately determined whether any company has received a waiver under this provision.
posted
well, I think talking growth in the K or M is not necessary at this point. What we ARE talking about is signifcant revenue growth in a sub-penny company. Find another pink that has that right now? Anyone? Please? Whether it came from the acquisition is also irrelevant IMO. CGM is now apart of DDSI - c'est tout. The fact is people have been converting to get shares in this company, at this point in time, I believe, for a reason. Those cd's could have been held for some time before conversion, yet almost all of them (it has to end soon as we should be approaching the A/S count I believe) have been converted in the last little bit. Something is up at DDSI IMO - and I hope we get to find out what it is soon.
Posts: 960 | Registered: Sep 2005
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posted
I will be holding as I'd like to see the results of the Police Security Expo in Atlantic City. IMO - This could be a significant event for DDSI, both in securing contracts and networking with future clients. The event is scheduled for June 20 & 21 and DDSI will be located in booth 721.
posted
I agree Gator that conversions are happening now for a reason. It will be very interesting to wade through the next financial release and see how the numbers have changed.
Their executive compensation package seems a little generous for the size of the company but it certainly isn't overboard. (Top two are making around 175,000 a year/ 100,000 a year)
The cost of revenue and sales and marketing will continue to look high until more revenue is brought in to complete the picture but it is what they need to be doing.
I like that they are still putting money into research. That could prove very beneficial in the long run. A lot of companies find one or two unique items and then surround those with generic stuff and leave it at that. Continuing research and expanding research says this company wants to stay on the cutting edge.
I am basing my belief that the runs will come on releases...but this is in a wierd market spot right now so I wouldn't be surprised for unexpected things to happen.
GLTA!
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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quote:Originally posted by The Bigfoot: I agree Gator that conversions are happening now for a reason. It will be very interesting to wade through the next financial release and see how the numbers have changed.
Their executive compensation package seems a little generous for the size of the company but it certainly isn't overboard. (Top two are making around 175,000 a year/ 100,000 a year)
The cost of revenue and sales and marketing will continue to look high until more revenue is brought in to complete the picture but it is what they need to be doing.
I like that they are still putting money into research. That could prove very beneficial in the long run. A lot of companies find one or two unique items and then surround those with generic stuff and leave it at that. Continuing research and expanding research says this company wants to stay on the cutting edge.
I am basing my belief that the runs will come on releases...but this is in a wierd market spot right now so I wouldn't be surprised for unexpected things to happen.
GLTA!
The Bigfoot
soooo i get chewed out, and blamed to be a paid pumper, then i explain the whole cd thing and im left in the dust.. thanks guys.. im gonna go cry in a corner.. lol
drink another... good thing i own xkem.. makes owning ddsi sooo much easier
Posts: 6397 | Registered: Jan 2006
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posted
I agree with cactus...this is just another scam pinkie that dilutes and holds the price down. The only thing you can really ever hope for with these stinkies is that they might hit .001 someday.
Don't swim with the carp. Feed with the sharks at the top.
-------------------- *I'm not a financial expert or advisor, everything stated is my opinion* Posts: 1680 | From: NC | Registered: Jan 2006
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posted
wow, sniper taking my side.... i guess time does heal all wounds.. lol.. thanks sniper.. i guess, heh
Posts: 6397 | Registered: Jan 2006
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posted
Ive always been on the same side...you've finally woken up...most of these stinkie pinkies behave the same way and the longer you stick around, if your money lasts that long, is that all these crappers dilute. BKMP, QBID, PAIM, DDSI, PYCT etc etc
-------------------- *I'm not a financial expert or advisor, everything stated is my opinion* Posts: 1680 | From: NC | Registered: Jan 2006
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posted
DDSI has fully audited financials, they ALWAYS file with the SEC, and they have strong growing revenue. How is that like any other pink you guys know?
What kind of crack pipe have you guys been smokin'? I mean seriously!?!? At least if you are gonna bash, make sure you are on a stock/board that what you say makes sense. Otherwise you look even more ridiculous than you sound.
Sniper is on Ignore.
Posts: 960 | Registered: Sep 2005
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posted
I'll agree with ya Sniper, these are stinkies! I had a couple of hundred to throw in this as I thought it might have a decent chance to move...might still yet.
Either way, I won't fret as I've made out nicely in a few others...namely JAVO.
Best to ya, man.
Posts: 199 | From: Tennessee | Registered: Apr 2006
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posted
bellwetherreport.com: The Bellwether Report Issues a Morning Alert for Digital Descriptor Systems, Inc
Jun 05, 2006 (M2 PRESSWIRE via COMTEX) -- Digital Descriptor Systems, Inc (OTCPK:DDSI), is a company that our research team will be tracking over the ensuing weeks. They recently came out with a significant corporate development, causing a market stir. The BWR Research Team will continue to bring its subscribers cutting edge research tools, and second to none customer service. Digital Descriptor Systems, Inc an industry leader in the development of Homeland Security-related products, announced quarterly results for the three months ended March 31, 2006.
Revenues for the three months ended March 31, 2006 of $870,964 increased $722,089 or 485% from the three months ended March 31, 2005 (restated). DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended March 31, 2006 was $293,342 an increase of $248,640 or 556% from the three months ended March 31, 2005 (restated). The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the three months ended March 31, 2006 was 34% of total revenues.
Operating expenses increased $401,341 or 139% during the three months ended March 31, 2006 versus the three months ended March 31, 2005 (restated). This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Research and development for the three months ended March 31, 2006 was $26,524 compared to $3,848 for the same period prior year for an increase of $22,676 or a 589% increase, which was due in part to the purchase of CGM Applied Security Technology, Inc in March 2005.
The net (loss) for DDSI increased 8% for the three months ended March 31, 2006 to $(1,897,872) from $(1,751,701) for the three months ended March 31, 2005 (restated). This was primarily due to the increase in operating expenses.
Net cash provided by investing activities was $0 and ($1,500,000) for the three months ended March 31, 2006 and March 31, 2005 (restated), respectively. This increase was due in part to the purchase of CGM Applied Security Technology, Inc. in March 2005.
The Company plans to spend the majority of it's time and efforts on increasing the revenue and marketplace of its wholly owned subsidiary, CGM Applied Security Technologies, as it feels that there is a much greater potential for growth of the product line of CGM. In order to accomplish this, the Company has hired additional sales people and is increasing its marketing budget in order to expand the awareness of CGM's product line. In addition, the Company has begun a complete revamping of the company's infrastructure in order to make it better able to respond to the need of its customers and to give management the reporting it needs on a timely basis.
To continue to expand the sale and acceptance of its core solutions by offering new and synergistic biometric (a measurable, physical characteristic or personal behavioral trait used to recognize the identity, or verify the claimed identity, of an individual) (i.e. FMS) security products to its installed base in the criminal justice market. DDSI's objective is to expand with these, and additional products, into much larger commercial and federal markets.
Shares of Digital Descriptor Systems, Inc traded up significantly as this company continues to deliver innovative and exciting products. Currently this company is trading at $0.0003, up 50.0% on volume of nearly 50 million shares.
This company is heavily traded by day traders making it extremely volatile, but if they continue to experience growth like they have in the past I feel that this company could really have a bright future. The BWR Research Team will continue to follow the market sentiment on this company and numerous others.
To review research on small cap companies like Digital Descriptor Systems, Inc, as well as many more exciting articles we encourage you to visit www.bellwetherreport.com. You can find these reports under the "Today's Articles" section. No credit Card Needed!! The Bellwether Report will continue to research the small cap markets to bring you exciting opportunities!! If you are interested in receiving more information on these small cap opportunities and other features of our site, feel free to sign up for a complimentary subscription to the #1 online investment tool www.bellwetherreport.com.
All material herein was prepared by the Bellwetherreport.com, (Bellwether) based upon information believed to be reliable. The information contained herein is not guaranteed by Bellwether to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Bellwether is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter.
Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. Bellwether may receive compensation in cash or shares from independent third parties or from the companies mentioned.
Bellwether's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value.
Bellwether will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission.
You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Bellwether undertakes no obligation to update such statements.
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info*m2.com.
Posts: 801 | Registered: Nov 2005
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“Bellwether may receive compensation in cash or shares from independent third parties or from the companies mentioned. Bellwether's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value."
"Bellwether will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.”
For newbies: When a company is being pumped it should be a red flag not to get too greedy.
Companies like Bellwether may help the PPS rise through the pump but they are often responsible for its decline as well. This typically happens when they unload all the shares they bought on the cheap, when you least expect it, driving the PPS down. In addition they will have you believe the company is doing very well, so well, in fact, that you believe the PPS will keep going up when in fact the opposite is true. You will not hear the negatives from companies like Bellweather. They leave it up to you to discover that truth.
As always, Newbie, do you own DD.
Fortunately for you DDSI is a reporting company. Reading the filings will help you with your personal exit strategy, should DDSI ever begin to run.
Posts: 13 | Registered: May 2006
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posted
I JUST heard from a reliable source that DDSI has some news coming this week, if not today. I'm adding...
Posts: 871 | From: New York, NY | Registered: May 2005
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posted
Has anyone been able to get in at .0002? I've had mine since the morning...im guessing the mm's are the only ones getting filled at this pps.
Posts: 30 | From: Va | Registered: Apr 2006
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posted
I'm skeptical about your source mb. These guys are not known for PR's and it is much to early for the next set of financials.
Hope you are right though.
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
Haven't tried to fill at 2 personally but I'd guess you will want to do a GTC order and let it sit for a couple days. If the shares are really out there it should get filled eventually. Let us know.
BF
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
How do you have L2's for this stock? I have apex with ameritrade but this stock does not come up with L2.
Posts: 30 | From: Va | Registered: Apr 2006
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posted
Looks to me that the CD's are over. That also explains why people are having a hard time getting shares at 0.0002. Almost everyone bought at 0.0002 or higher, so who would sell even or at a loss? That's why the volume is so low.
This could be a very critical moment... if good news comes out soon, this thing will fly (i.e. 0.0030+) easily. This might be the best time to get in and take advantage of any news, rumor, or speculation because just a little nudge at this point and DDSI skyrockets. About the possible news: Could it be that CD's have ended? Perhaps a contract? Perhaps continued revenue and profit improvement this quarter? I think it could be any combination of the three or even all of them at once. It's all imminent.
The ONLY thing that was keeping this down was CD's... that's it. This company is already way undervalued and better than 99+% of the pinks out there. Heck, it's even better than most OTCBB's.
If any momentum is started here this will have nothing holding it back.
GLTA.
GO DDSI!
Posts: 54 | From: Canada | Registered: May 2006
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posted
I for one would sure like to see something out of this thing I have no choice but to stay long. I didn't do the proper DD and bought in at .0004. Live and learn. Thanks guys for all the DD that you do. I am currently in Iraq and don't have many resources to do my own DD. I know this will move sometime?
-------------------- GETTING BY Posts: 101 | From: marion, il | Registered: Mar 2006
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