Consumer Products Services Group, Inc. (OTC:CPSV) has gotten back to silent mode after a one day showdown on announcement of changes in management structure. Any continuation of this action seems unlikely because no significant change took place.
The stock price went up nearly 30% on Monday as the company declared that Rick Hamilton was appointed as President. Mr. Hamilton previously served as Vice President of Sales and Marketing. Since the event doesn’t have any direct material effect on the company’s financial condition, the stock price will likely deflate over time. [BANNER]
The current market cap of over $22 million hardly fits the business with very little liquid capital, heavily leveraged balance sheet and constant losses from operations. The company can’t even generate gross profit and holds slightly negative margin. On top of that, sales continue to decrease.
On top of the light trading, that usually surrounds Consumer Products Services stock, the company is also throwing in the risk of dilution by constantly relying on funding though equity sales.
The stock price is mainly holding up because CPSV has sustainable revenues. Other than that the business is doing poorly and management needs strong and quick decisions to salvage the remaining value.
