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United Protection Security Group Inc V.UZZ



TSXV:UZZ - Post by User

Comment by Orwellon Jul 21, 2008 9:31pm
590 Views
Post# 15315053

RE: Just heard from CFO

RE: Just heard from CFOPersonally, I don't care about the acquisition necessarily unless the seller is in some distressed position and wishes to sell out at a low valuation.  Any big acquisition will require issuance of more shares, so unless the due diligence is bang on, it could be just as much dilutive to earnings as it might be accretive.  Look at recent press coverage regarding Garda World who overpaid on an acquisition based on alleged misrepresentations, and is now in court trying to get their money back.  I'm sure this has spurred UZZ management to be very careful, so perhaps if the acquisition is a go, we can be sure it is a good one.

Having said that, don't forget that UZZ is a micro-cap.  It has only gone down because it is not a liquid stock.  I could have probably bought every share sold in the last couple of weeks, i.e. the dollar volume is basically nothing, it is just that the market cannot absorb any selling unless alot of us investors out there keep alot of bids in.  The market needs more awareness of UZZ, and UZZ needs to keep delivering on the numbers, and continue to grow.  A good business model guarantees growth.  If UZZ grows 10-15% a year, then the stock price will have to reflect that no matter what.  UZZ has good management and directors, so UZZ has as good a chance as any other company at growing.  Management also holds most of the shares.  This may be a negative in terms of a near term takeover, but it is positive in terms of incentive to grow the company.  I'm sure there would be buyers out there for UZZ, but I'm also sure that management would not want to sell the company at this stage, I'm sure in their minds that they don't see selling out the company until it is $1, $2, $5?  Alarmforce is also majority owned by management, when AF was $1, management said they were looking to grow it to $10.  It is around $5.75 now.

Also, remember that Sprott asset management bought into UZZ.
The best adivce for anyone on this board is that, hey, you know about this company while thousands of other investors still haven't heard of it--so you get to buy in at the 2008 gift price of $0.20 to $0.25.

O.



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