DT Cloud Star Acquisition Corporation Ordinary Shares (DTSQ)

FairStock Score: 12/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I begin with business quality. DT Cloud Star Acquisition is not an operating company; it describes itself as having no significant operations and is searching for a merger, asset acquisition, or similar combination. That means there is no competitive moat to assess, no revenue, no pricing power, and no durable earnings stream. What we do have are filed figures: a net loss of $4,221 in FY2023, net income of $1.2M in FY2024, and $2.1M in FY2025. More recently, in fiscal Q3 2025, the quarter ended 2025-09-30, net income was $582,964, and in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $631,498. But in fiscal Q1 2026, the quarter ended 2026-03-31, the company lost $110,289, before earning $35,535 in fiscal Q2 2026, the quarter ended 2026-06-30. That is not a smooth record. Financial health is thin: trailing free cash flow is -$125,714, a -0.3% FCF yield. FairStock's Piotroski F-score is 1/9, though its Altman Z-score is 14.40. Valuation offers no margin of safety: at the close on 2026-10-13, the price was $11.42; the FairStock P/E is 114.20, the Graham Number is $3.21, and the margin of safety is -255.76%. The FairStock Score is 12/100 and the computed Lynch category is TURNAROUND—returned to profit after a loss within the last three years. But for a pre-merger shell, reported profit may not reflect an operating business, and I cannot underwrite a merger before the target and terms are known. I see speculation, not a bargain.

In plain English: DT Cloud Star Acquisition does not run an operating business; it is a shell company looking to merge with or acquire another company. Its filed results are tiny and uneven: it earned $2.1 million in fiscal 2025, but lost $110,289 in the quarter ended March 31, 2026, then earned $35,535 in the quarter ended June 30, 2026. At $11.42 a share, the price looks expensive relative to its very small profits and hard-to-value shell status.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer