Cdnx UZZ.V Thread

[Naamplao]

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.

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.

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

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.

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

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.

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.

[SNOAdmin]

All posts on UZZ.V go in this thread

[Naamplao]

Again...nothing much has changed over the week, except that we got information that this company has had a nice year with increasing revenue (always a nice sign).

The investors appear to be waiting for news on this venture into the USA. That is what is holding up the stock price. That $0.42 resistance line is HUGE...imagine what it will be like when we break it....not if...but when IMHO. To me it will be like pressured water through a leaky pipe.

Here is the Yahoo line chart



This chart does not include todays action which resulted in a slight uptick to $0.37...above the 50dayMA.

When I look at the SharpChart that I normally use the TRIX(15,9) is heading upward nicely, The Accum/Dist is also starting to head above its 20dayMA(shows people are accumulating), The RSI is positioned above 50% (lots of room for excitement) and the MACD is turning positive again too.

The volumes are growing a bit too. The BB's are not too narrow right now so I would not expect much movement til Wednesday next week unless they break news regarding this venture into the USA.

Looking good for next week....hope you are around for the ride

[Naamplao]

Here we go....we have the announcement that we were waiting for

United Protection Signs Purchase Agreement with U.S. Target - Yahoo! Canada Finance

Less than one hour into trading today (April 23) we are up 2.5 cents to a share price of $0.39....we should be making another assault on the $0.42 resistance.

Good luck all.

[Naamplao]

Well the day did not go according to script...or at least my script.{sigh}

Maybe it was the 1.5% drop in the CDNX today
Maybe the investing public was more concerned in the similar drop in the TSE
Maybe it was the fact that the "Southern USA private security company" was not named in their news release

Whatever! But the stock rose to $0.39 about 6.8% (where it has been many many times before) on a volume of 427,000 shares which is 6x normal volume.

I have no idea what investors who sold at those prices were thinking. They could have gotten those prices many times in the past month...It will be interesting how this stock will play tomorrow. I don't think the corporate buyers were involved today...probably too busy putting out fires elsewhere I suppose.

Nice result on a bad day....but I was expecting more I suppose.

[Naamplao]

This is the case of "same song...second verse".

I don't know what it takes to move this stock upward.

in the last 2 weeks or so we have

1. best ever revenue/profit for the year 2007.
2. an announcement (apparently for Canadian consumption only) of the agreement to purchase a private security company in the USA.

The private company is unnamed and perhaps that is the problem...also lack of exposure of the news in the USA may be another factor...but then not many Americans follow Canadian stocks I fear...especially stocks that are not resource based..

But I made another significant purchase at these prices as I think there is a longterm future for this company because as I see it, the company has not put a foot wrong in the last year.

The share price is oscillating between $0.35 and $0.41. Eventually it will move a move some direction and I am betting up in the long term.

With the Winter Olympics coming to Canada in 2010 there is lots of work and exposure in store for this company

[Naamplao]

Well there is not much stock activity right now but the company is certainly not standing still. The acquisition of the private security firm in British Columbia announced in January has now been finalized. Here is the announcement.

United Protection completes Tri-Force acquisition

2008-05-01 19:14 ET - News Release
Shares issued 61,040,528
UZZ Close 2008-04-30 C$ 0.36

Mr. Sig Jorstad reports

UNITED CLOSES ACQUISITION OF TRI-FORCE SECURITY

United Protection Security Group Inc. (UPSG) has closed, effective March 31, 2008, the acquisition of 100 per cent of the common shares of Tri-Force Security Services Ltd., of Vancouver, B.C., originally reported in Stockwatch news dated Jan. 7, 2008.

The total value of the transaction is $500,000, with $100,000 paid in cash on closing, $300,000 payable on or before June 30, 2008, and the remainder payable through a vendor financing arrangement which calls for equal principal payments over the 12-month period postclosing, with an option for the vendor during the month of June, 2008, to convert one-half of the original amount of the vendor takeback into common shares of the company at the 10-day average trading price when converted. The previous owner of Tri-Force Security, Allan Khan, has been appointed to a management position with United Protection Services as director of sales and marketing for the British Columbia region under a three-year employment agreement.

Don Allan, president and chief operating officer of United Protection Services, stated: "The addition of several high-profile accounts from the Tri-Force client base provides UPS with a stronger presence in the downtown Vancouver core market and adds additional critical mass to our B.C. operation. The retention of Allan Khan is a significant benefit that will aid UPS in its goal of becoming one of the largest and premier suppliers of quality and diversified security services to the B.C. marketplace. His 20 years of industry-related experience and focus on customer service contributes greatly to our already strong management team."

This transaction is subject to TSX Venture Exchange approval.

Maybe this will cause the stock price to get off the dime. All good news.

[Naamplao]

Well not much activity but the BB's are suddenly getting tighter. I expect there will be a movement soon...the TRIX and Accum/Dist are positive in spite of the lack of strong activity. We keep bouncing along the 50 dayMA....this has been a long sideways play

UZZ.V - SharpCharts from StockCharts.com

Hmmm...the more I look at this stock in the sharpChart...the more I see a flag coming to a point....or is it my imagination at work here???