Well I will continue discussing United Protection Security Group Inc in this new format. For those of you that are unfamiliar with this company here is a short introduction.
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United Protection Security Group Inc. is an established security protection company; focused on high impact, high visibility, and high risk security situations, coupled with one of the broadest ranges of traditional private security services in the industry.
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This is a basic statement. I believe they are out of Edmonton, Alberta, Canada the capital city of the province. Initially they focused on Oil and Gas plant security which was a niche market for them. In the last year under new management they have expanded their operations in Alberta, have purchased a security company in British Columbia and have a joint venture in BC with a native Indian band
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This joint venture agreement will allow UPSG to explore new business opportunities involving the provision for security officer training, deployment, housing of security personnel and other business opportunities that may arise in the period of time preceding, during, and following the 2010 B.C. Winter Olympics. The agreement, establishes the roles of UPSG, the Lil'wat Training and Employment, Recruitment and Training Service and their lead negotiator and addresses responsibilities and the equal distribution of equal revenues and profits.
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This sets them up very well for the future with respect to the 2010 Olympic Games....I do like their preparation in this respect.
Finally they are in negotiation for expansion into the USA
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EDMONTON, Jan. 29 /CNW/ - S. Jorstad, Chairman, President and CEO of United Protection Security Group Inc. (UPSG or the Company), a Canadian based company, trading on the TSX-Venture Exchange, under the symbol (TSX-V: UZZ - News) announces that it has entered into a non-binding term sheet with respect to the purchase of a major U.S. based Security Services provider.
Final details of the proposed acquisition will be determined on completion of the formal agreement. Annual sales of the target company were just under $100,000,000.US in 2007. The purchase price, for a controlling interest, is proposed to involve cash, shares and a vendor take-back. Cash to close is intended to be raised through a share offering led by a major investment banking firm and other investment firms by way of prospectus.
Mr. Jorstad states that this acquisition, which provides both man guard and electronic video surveillance services with multi branch offices in the US, will provide United Protection Security Group Inc. with the link it has been looking for in the US market, as well as greatly expand its video surveillance and monitoring operations. Closing of the transaction is targeted for March 31, 2008.
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NOTE: the target date has come and gone with no announcement....only rumour that the negotiations have gone reasonably well but the documents have not been finished....
This is understandable as business negotiations are rarely linear...but this news is holding up the advancing share price in the last few months.
If you look at recent news (ie yesterday) they announced their financials for the year with a nice increase in revenue. This is a profitable company which is growing slowly in the past and looking forward
I like the growth of this company.
TA analysis
Here is the only SharpChart I can show you....it isn't the real one I use unfortunately since I don't use CandleSticks
UZZ.V - SharpCharts from StockCharts.com
On my SharpChart I see a share price close straddling the 50dayMA, TRIX(9,15) that is turning positive, Accum/Dist holding steady (even with volumes today, April 18, that are 2.5 times daily normal), the RSI is neutral at about 50%...nice looking chart
The P&F chart is very interesting
Note how strong this resistance line is at $0.42! It goes right across the page. Break this line and we will see a rapid rise to the next resistance point at $0.52...then beyond that...Oh boy
(rubbing hands)
On the down side we do have a support level at $0.35...this is also quite strong...if we break this significantly and stay there....Well...that would not be good news in the short term.
I am in this for the long term. It is a stock I feel has a future.