Ds Healthcare Group Inc (DSKX) research, news, and more from GeoInvesting

Company description

Wed, 13 May 2015 04:00:00 GMT

DS Healthcare Group, Inc., doing business as DS Laboratories, develops and markets hair care, skin care, and personal care products in North America and internationally. Its hair care products include Revita and Revita LT shampoos, and Revita.Cor conditioner for hair growth stimulation; Dandrene, an antifungal shampoo to treat itchy scalp and dandruff; and Spectral line of products comprising Spectral.DNC spray formula, Spectral.DNC-L lotion, and Spectral DNC-N to re-grow hair through various pathways, as well as Spectral.RS, a topical treatment for men and women with advanced androgenic alopecia. The company’s skin care products comprise Hydroviton, a skin cleanser for oily and acne prone skin; Keramene, which is used to suppress hair growth and soften remaining hair strands; Oligo.DX, a cream to enhance the appearance of cellulite from women’s thighs, hips, and buttocks; and Trioxil, an acne cream. Its personal care products consist of Nirena, an intimate feminine care cleanser; and Spectral Lash, a product based on advanced bio-peptides that are designed to grow and enhance the length and girth of eyelash hair. DS Healthcare Group, Inc. markets and sells its products under the DS Laboratories, Polaris Labs, and Sigma Skin brands through salons, spas, department stores, specialty retailers, and distributors. The company was formerly known as Divine Skin, Inc. and changed its name to DS Healthcare Group, Inc. in November 2012. DS Healthcare Group, Inc. is headquartered in Pompano Beach, Florida.

Research

Wed, 13 May 2015 04:00:00 GMT

We have begun to track $DSKX. We issued a premium tweet at 12:14pm today that we were buying DSKX shares. To be clear this is not a valuation play and is based on momentum and technical breakout.

Reported strong Q4 financial results on April 15, 2015
- Net revenues were $ 3,706,761 up 21% over Q4 2013
- Non-GAAP EPS of $0.06 vs a loss of $0.06, marking the first profitable quarter since Q4 2012

While quarterly revenues have not broke out of a recent historical range, the company just launched a new hair care product line (Continuum) that may help drive sales and earnings in the near term. So we think momentum investors may gravitate towards this story.

Quotes from management on Continuum product line:

“Continuum is a three-step treatment that includes Ro-Maxx Quantum Creator, Ro-Zen Quantum Optimizer, and Ro-Topia Fractal Energizer. This treatment was developed due to the tremendous demand for professional services designed to protect one's hair during bleaching and coloring, which represents a multi-billion dollar services industry. A chemical reaction which occurs during bleaching or coloring opens the cuticle and oxidizes melanin to help remove pigment, but can also leave hair structurally damaged. Continuum is a completely new innovation assembled with the use of proprietary technology developed by DS Healthcare, which instantly repairs hair strands and restores hair to its optimal state within minutes.

Watching Continuum in action is like seeing magic performed before your very eyes. Whether demonstrating on microscope slides or on live volunteers, hair transforms instantly. This is the single most impressive technology we have ever developed and is something that every hair care professional can utilize. Considering that 75% of all women, including a growing number of men, color their hair and make a serious investment into hair color, Continuum is an indispensable tool for a salon professional. Additionally, we are also very excited in our ability to manufacture this product with a higher profit margin than any other product in DS Healthcare's history which subsequently allows us to offer higher margins to our distributors, so it's a win-win for everyone" stated DS Healthcare President and CEO Daniel Khesin.

The demand for this product combined with very high margins means continued profitability and growth in addition to what we already demonstrated at the close of 2014" concluded Khesin.

Expanding distribution network. The company recently announced it will soon begin selling to Farmacias Benavides, Mexico’s third largest pharmacy chain recently acquired by Alliance Boots GmbH, the European pharmacy retailer and wholesaler owned in part by Walgreens

Reasons For Tracking

Wed, 13 May 2015 04:00:00 GMT

We have begun to track $DSKX. We issued a premium tweet at 12:14pm today that we were buying DSKX shares. To be clear this is not a valuation play and is based on momentum and technical breakout.

Reported strong Q4 financial results on April 15, 2015
- Net revenues were $ 3,706,761 up 21% over Q4 2013
- Non-GAAP EPS of $0.06 vs a loss of $0.06, marking the first profitable quarter since Q4 2012

While quarterly revenues have not broke out of a recent historical range, the company just launched a new hair care product line (Continuum) that may help drive sales and earnings in the near term. So we think momentum investors may gravitate towards this story.

Quotes from management on Continuum product line:

“Continuum is a three-step treatment that includes Ro-Maxx Quantum Creator, Ro-Zen Quantum Optimizer, and Ro-Topia Fractal Energizer. This treatment was developed due to the tremendous demand for professional services designed to protect one's hair during bleaching and coloring, which represents a multi-billion dollar services industry. A chemical reaction which occurs during bleaching or coloring opens the cuticle and oxidizes melanin to help remove pigment, but can also leave hair structurally damaged. Continuum is a completely new innovation assembled with the use of proprietary technology developed by DS Healthcare, which instantly repairs hair strands and restores hair to its optimal state within minutes.

Watching Continuum in action is like seeing magic performed before your very eyes. Whether demonstrating on microscope slides or on live volunteers, hair transforms instantly. This is the single most impressive technology we have ever developed and is something that every hair care professional can utilize. Considering that 75% of all women, including a growing number of men, color their hair and make a serious investment into hair color, Continuum is an indispensable tool for a salon professional. Additionally, we are also very excited in our ability to manufacture this product with a higher profit margin than any other product in DS Healthcare's history which subsequently allows us to offer higher margins to our distributors, so it's a win-win for everyone" stated DS Healthcare President and CEO Daniel Khesin.

The demand for this product combined with very high margins means continued profitability and growth in addition to what we already demonstrated at the close of 2014" concluded Khesin.

Expanding distribution network. The company recently announced it will soon begin selling to Farmacias Benavides, Mexico’s third largest pharmacy chain recently acquired by Alliance Boots GmbH, the European pharmacy retailer and wholesaler owned in part by Walgreens