Somerset's losing money, but they're buying

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08/17/2009
I came across a new company today, via press release of its earnings (or lack thereof): Somerset International. Edit: Okay - they're not new. Looks like we wrote about them at the beginning of last year. Maybe I should search our site BEFORE I blog. Anyway, the rest of this still makes sense. Apparently, it's public holding company that's looking to capitalize on "the exponential growth in concern and demand for security." Haven't you noticed the exponential growth in demand for security? I certainly have. Anyway, they've purchased a number of companies in the last couple of years and the earnings statement released today says the company is still on the hunt. According to Yahoo, the company's stock is worth less than a penny, and only has 94K on hand, and is losing roughly 350K a quarter, but, regardless:
John X. Adiletta, President of Somerset, concluded, "As part of our growth strategy, we remain focused on continuing to expand our portfolio of security technology companies through additional synergistic acquisitions. Our goal remains to expand our portfolio of companies, increasing cross-selling opportunities and operating efficiencies, and ultimately achieve profitability."
I'm assuming there's another bank of investors somewhere who've committed cash to the venture. Otherwise, that makes no sense. Currently, Somerset operates: Secure System, which "provides personal alarm systems, wireless transmitters and receivers, and personal alarm locators. The company currently serves colleges and universities and medical and mental health facilities. Its products are also easily adaptable for office campuses, residential facilities, and correctional facilities. The system works by providing an individual with a wireless personal alarm locater with which they can summon help and be located by the pressing of a button." Meadowlands Electronics and Vanwell Electronics, which "specialize in the distribution, sale, installation and maintenance of fire and security equipment and systems that include fire detection, video surveillance, and burglar alarm equipment. Meadowlands and Vanwell have similar product availability from distinct manufacturers. Vanwell exclusively distributes Siemens Building Technologies, Inc. products and Meadowlands distributes other brands of fire and security equipment. This affords the opportunity to provide a wide array of specified equipment with the flexibility to offer cost effective alternates when appropriate. The products encompass complete lines of fire, CCTV (closed circuit TV), communications and PA systems; services include maintenance contracts, monitoring services and system engineering." And Fire Control Electrical Systems, which "specializes in the distribution, sale, installation, and maintenance of Honeywell Life Safety fire and security equipment and systems that include fire detection, video surveillance, sound systems, and burglar alarm equipment." I'll be putting in a call to Adiletta. Should be a company to watch.

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[...] couple days back, I sort of mocked Somerset for this line in its press release about its earnings: “the exponential growth in concern and [...]