Disclaimer: The below assessment is provided for informational purposes only and is not meant as a solicitation to buy or sell any securities related to the subject of this paper. All views and interpretations prescribed in this assessment are those of the author without communication or review of the company in question. This is a personal interpretation of the information provided by Custom Protection Services. This is not a recommendation to buy or sell securities related to ticker CSPS.
Any analytical assessment begins with the validation of baseline information. Usually this is done by dual independent source validation. Two pieces of collaborating information that did not come from the same source. In the OTC market, this is not always possible. Most often, data is repeated, regurgitated, or reused over and over again, causing it to lose its value. The above serves as a secondary disclaimer for this assessment.
Custom Protection Services, Inc.
Before we get into the analysis below, it is essential to note that this is a new company with no history. Custom Protection Services, Inc has been in operation less than 120 days; because of this, there are significant gaps in the information available that may be answered given enough time.
Information scope is limited to the company website (https://www.customprotectionservice.com), Texas Online Private Security website, and CSPS OTC page (https://www.otcmarkets.com/stock/CSPS/disclosure)
About Custom Protection Services Inc (CSPS), according to the company website.
Custom Protection Services Inc (CSPS) is a public company with head offices located in Conroe, Texas. It offers a comprehensive portfolio of security and protection services which can be tailored to meet a client’s specific needs. Management has 100+ combined years of experience conducting security and protection operations.
Analyst comment: The website is one level deep consisting of the main home page with investor and news pages pointing to the OTC page. The company makes several claims on its main page that, at this time, can not be verified. Claims include over 100 years of combined experience within security and protection, service provided by the company, and consulting connection.
The 1st point I’d like to address is the services provided by the company. Although not all of these services require a license, all of them require some level of experience. Ed experience level that, at this time, cannot be validated. Usually, experiences are validated through endorsements on LinkedIn; being unable to find the management profiles on LinkedIn, it is challenging to assess competency within these services. At this time, the only validation for these experiences comes from an Internally released PR from the company. The information provided by the company is compelling; however, without independent verification, we can not assess the validity of their claims. Based on research conducted on Texas online protection services registration website, only two services provided by this company can be positively validated. Those services include private investigation and security guard. Texas Online Private Security Class C license: Private Investigation and Security Contractor Company License. Expirers on 31Aug 2020.
This takes us to our 2nd point the 100 plus years of experience. Once again, it is difficult to verify these claims because there is no independent verification of experience or endorsement from second or third-party sources.
Moving on to the 3rd claim of consulting connection. This is unverifiable; however, in this case, it is to be expected. Given the organization those consultants come from, information on them should be limited for their personnel protection.
Market Assessment: At the moment CSPS market is relatively small and limited to the state of Texas, this is assessed by a single state license. Each state has its licensing process and credentials. Since these licenses do not carry across state lines, look for announcements of additional licenses to single potential expansion.
Advertisement Assessment: Although a substantial initial investment into advertising will be necessary to penetrate the market, once this is done, additional financing may not be needed. Generally speaking, the marketing model for protection services focuses on word of mouth and referral networking. The ability to grow and maintain this network will allow for progressive expansion into a new market area.
Contact Assessment: expects contracts for services to be understated due to security, at least in regards to long term operations. The need to protect client information and the need to secure CSPS information overlap in this regard. This protection will take many forms, from digital systems to physical structures. A lapse in security on the CSPS side of a contract due to break in or cyber attack will have a significant adverse effect and could show an inability to provide for themselves what the claim they can provide for others.
Final Analysis: As stated at the beginning of this article, this is a very young company. As a new company, significant amounts of information may not be available as of yet. At this time, there is not enough information about CSPS publicly released to form a positive assessment. It is believed that by addressing the information gaps above in regards to website claims that a more transparent company image may create.
This concludes the analysis of Custom Protection Services, Inc (OTC: CSPS).
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