WA•M WAX ASSET MANAGEMENT May 2 nd, 2018 WAM Clients, I wanted to send out an update on Command Security (ticker: MOC) given the negative news they announced this morning and the market reaction today. As long-time clients know, we have held a position in Command Security since 2012. Having started buying our position at prices around $1.30 a share. At the time MOC was a sleepy New York based physical security company trading below liquidation value and going through a radical management change. The new CEO at Command Security had an impressive background in the industry and laid out a long-term plan for how he was going to grow the company and compete with the national players in the security industry (i.e. G4S, Securitas, Allied Universal). His plan included moving the company to Washington D.C. to go after federal business, as well as pursuing large contracts with fortune 500 companies that were unhappy with the service they were getting from the bigger security companies. While I was aware of the challenges in the security industry; Low margins, high competition, and high employee turnover, I was also attracted to the long-term demand drivers in the industry given the growing need for security in every area of life. There will always be a need for security, and the need grows every year. Moreover, the industry was, and is undergoing continued consolidation. This set up MOC well for an eventual sale to a bigger player. Most importantly, we were buying a profitable company at below book value. Over time as we got more comfortable with Command Security and their management team we continued to build our position, even at higher stock prices. Our thesis and belief in the company was reinforced by their continuing to win large awards from tier one customers. These wins included the U.S. Postal Service, the U.S. State Department, Delta, the TSA and Amazon. Management had laid out a plan and was executing. Over the past six years as the compa