Blue Line Protection Group Inc (OTCMKTS: BLPG) finds itself languishing at all-time lows after shedding more than 80% in market value over the past year. The stock has felt the full force of short sellers over the past few years, as bounce-backs have only gone to attract more short selling.
BLPG Price Analysis
Just as was the case early last year, the stock has started showing signs of bottoming out; waiting to see if the upward momentum has what it takes to push the stock up the charts. The trigger behind a recent uptick in share price and market activity has to do with a strategic partnership that the company has signed with Wright-Patt Credit Union.
The alliance has the potential to reinvigorate Blue Line Protection Group core business, something that explains why investors have pushed the stock up the charts. The announcement that the company will start providing secure logistics and security solutions is good news that continues to shore the stock’s sentiments in the market.
However, the big question remains, will the stock continue surging after the recent spike? The underperformance of the past year essentially calls for more groundbreaking catalysts, if Blue Line Protection Group is to bounce back after years of underperformance.
A string of positive updates is what is needed if the stock is to bounce back and take out the $0.01 technical level. Below the critical resistance level, the stock is unlikely to attract institutional investors. A spike above the critical resistance level should avert concerns of further slides and reinvigorate Blue Line Protection Group prospects and sentiments in the market.
About Blue Line Protection Group
Blue Line Protection Group is a company focused on providing armed protection as well as professional compliance and secure transportation services to individuals businesses and government agencies. The company also offers logistics services and armed protection to licensed cannabis businesses. Its logistics division is made up of armored transportation services, money escorts as well as shipment protection.
WPCU Strategic Partnership
A long period of subdued market activity has to do with Blue Line Protection Group failure to issue press releases or updates underlying ongoing developments.
However, In the recent past, Blue Line Protection Group has sought to change all this having issued a press release that affirms the core business. The inking of a strategic partnership with Wright-Patt Credit Union underscores the company’s push for opportunities and growth as it moves to expand its footprint into Ohio.
Under the terms of the agreement, Blue Line Protection Group is to offer logistics and security solutions to WPCU members. A partnership with a $4 billion-plus financial institution should expand the company’s geographic reach as well as market share, crucial for revenue and shareholder value generation.
Blue Line Protection Group is to make deposits on behalf of WPCU at the Federal Reserve as part of the partnership.
“WPCU is the first financial institution in the state to publicly recognize the need to provide cannabis-related businesses with access to depository services and the need to mitigate the risk to Ohio communities. The partnership helps solidify WPCU’s commitment to serving the industry in Ohio by addressing the primary risk factor facing the industry,” Blue Line Protection Group stated.
A deal with a financial institution of WPCU caliber is a big validation for Blue Line Protection, which has transported and processed more than $1 billion in client’s assets to date. In a bid to ramp up business, the company will start to provide infallible, meticulous and currency logistic services as it seeks to grow its market share in Ohio.
The company is also planning to expand into other states as part of its growth strategy.
A deal with WPCU is of great importance as it validates Blue Line Protection credentials in a highly competitive sector. The deal is sure to generate significant value for the company in terms of revenues, given the logistics and transportation service, it is poised to offer.
A partnership with a $4 billion company could open doors for other similar deals given the validation it provides the company’s services.
A spike in share price and market activity signals renewed investor sentiments and interest in the wake of the groundbreaking deal. That said Blue Line Protection is a potential bounce-back play as it eyes the $0.01 technical level.
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Disclosure: We have no position in BLPG and have not been compensated for this article.