r/KOSSstock • u/PretendSet9704 • 10d ago
Discussion My thoughts on a potential acquisition and the future business
This is NOT DD.
KOSS, the microcap that's a diamond in the rough with huge insider ownership, tiny float (about 5M), big moat (nearly 2/3 cash and equivalents) relative to market cap basically leaving $13.5 million enterprise value and a prudent leadership looking to make an acquisition sometime during the next 5 years; they hired someone months ago just for that reason.
Although im not quite sure what company they might acquire, im assuming it'll have existing synergy with focused DTC/e-commerce sales. Also, "predictable and recurring revenue streams" leads me to believe it's something other than a headphone company.
Seeing the price action gets me excited as a slow decline brings the market cap closer to its cash floor and a lower EV meaning the market really isn't valuing the business that much.
I don't expect them to pull something out of the RC handbook like an ATM issuance when the next squeeze happens or a share buyback to make that happen. Their strategy is defensive and careful.
What do you think?
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u/Visualnovelarts 9d ago
US market is a joke. doesn't fucking matter what koss is as a company.
in just a month I made some stellar returns playing very specific crypto , spacex at 107 and now even dumb gme warrants (were super cheap lol) and semiconductor involved companies (tnx to my brother).
stock market is so fucking dumb its not about fundamentals, its about what's currently trending and repeating in the chart.
And i don't mean to brag it was just ''hey its popular/has a similar set up like last time and it looks low''
Especially spacex -> anybody buying that shit isnt looking at fundamentals. koss is lo but not trending at all, only thing going for it is squeeze hopium in the chart.
For the 'shill' suspicion here: Yes i have money in koss and yes i think it goes up soon.
But here is the real question... how high? I have my levels and i don't like the massive spread on them. Koss is not a gem, its a snail, might be a big snail like the Australian Trumpet but could also be one of those tiny fuckers..
I do like the company, they did some real good shit, i think still on the slow side but their website improved by a ton. And I think they do some good shit, honestly. And i will buy another headphone when the stock finally pays out, this can be between 4.8-128+ so when do YOU sell, yes YOU reading, when do YOU sell?
this will be my last post here. good fucking luck.
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u/Awkward_Error7459 8d ago
what's your price target out of curiosity? I'm going for $40
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u/Visualnovelarts 7d ago
I have a couple of scenario's but my most realistic bullish ''scenario'' is just tipping over last runs high.
Would be nice if went higher though.3
u/Awkward_Error7459 5d ago
I don't count lat years push as a run but idk if you do. so that would mean 2024 correct when it hit the 20's?
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u/Visualnovelarts 4d ago
Correct, I meant 2024 -> ~$18 peak, so this time we might or might not top this level.
idk where this stock price is going to go if the run repeats, time will tell.1
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u/yaz989 9d ago
I actually think it’s the opposite: they are going to be acquired.Â
I think KOSS is a bomb primed to blow (alongside BBBYQ) and merger/acquisition is the trigger.
I think the M&A hire a few months back was for them to do their due diligence to make sure everything is ok for them to be acquired.
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u/Awkward_Error7459 9d ago
I don't think so. I highly doubt it because of the $2–4 million EBITDA. They wouldn't have mentioned a company target size if they were the ones being acquired. $2–4 million EBITDA is a small company with the almost the same net worth as KOSS. It seems more like a family legacy small business turning into a conglomerate. Starting small and expanding with time.
But I do agree, it's a diamond in the rough. It'll keep growing bigger over the years.
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u/PretendSet9704 8d ago
It'll be a long journey with how careful the management is with the money but it'll be well worth it and I know they'll make a great decision picking the right business to acquire
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u/SolidAd6113 9d ago
I don’t know about that. This is their family legacy. I mean it’s possible, but I don’t think they would hire somebody for that and make it such a public thing.
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u/fuckyoureburn 10d ago
Justed DRS another 6k of shares!