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Encompass Holdings Inc. (OTCMKTS:ECMH) Is A Penny Stock On The Move

Encompass Holdings Inc. (OTCMKTS:ECMH) Is A Penny Stock On The Move
Written by
Jarrod Wesson
Published on
November 9, 2017
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Today, we need to talk about an interesting new business profile, Encompass Holdings Inc. (OTCMKTS:ECMH).This company, focused on real estate, has recently released new corporate changes that have made the share price spike. A new President and CEO was elected and a new update about its business model was released.In addition, the volume registered by the exchange was close to 600 million shares some days. In our opinion, it proves that the market interest in the stock has increased.Have a look at it before we provide more information about the company: A decade chart for ECMH 2 months chart for ECMHEncompass HoldingsECMH is a very old business structure. Created in the 90s, its stock was worth $9 before the financial crisis of 2008.Now, the company seems to be finally seducing the market again after a long time by releasing little information about its operations.What happened?On November 2, 2017, the market released the following corporate change:

"Effective on October 20, 2017, J. Scott Webber resigned as President and CEO and appointed Mark A. Miller as President." Source

A new CEO is usually perceived as a good development from companies that are trying to turn around.On the top of it, its profile seems to be promising. Read the following:

"Mark A. Miller, age 40, has been self employed by DDG Properties, LLC as the CEO for the past 8 years. Mr. Miller is the sole member of DDG Properties LLC, a real estate holdings company which was formed in 2009." Source

One day later, a press release was received by the market, wherein Mark A. Miller was presented. He noted that the company will be working to bring ECMH back to an active status in the State of Nevada, which we appreciate. We need to very alert on this name, as past due filings will be uploaded and the share price could react to it.Additionally, it was noted that the company does not plan to execute any reverse split, which is also a great news.Finally, ECMH noted that it is shifting its focus to Residential and Commercial Real Estate Holdings. The company is trying to use the expertise of the new President in this field.What type of project is the company interested in?Little information has been provided in this regard. In this press release, it was noted that "commercial and residential opportunities with the highest possible ROI and cash flow rate to benefit the corporation and its stakeholders." We appreciate this information, but we encourage the company to release more details.Share Capital StatsThis is the information that is provided by the OTC Markets about the amount of shares outstanding:Market Value1$7,921a/o Nov 03, 2017Authorized SharesNot AvailableOutstanding Shares9,901,587a/o Jun 23, 2010-RestrictedNot Available-UnrestrictedNot AvailableHeld at DTCNot AvailableFloatNot AvailableSourceThe float is not given, but we conducted some research and found out that the float is very low.This means that the share price may exhibit, in the near future, quite a bit of market volatility. Thus, be careful if you are not experienced with such type of stocks.For those readers who like adrenaline stocks showing impressive volatility, here is a new stock to play with.Short sellers have closed their positionThere is an interesting fact that we need to point out. Short sellers seem to have been disappeared. Have a look at it:DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueJul 31, 201740,666691.4811,837,1231.00NoNoJul 14, 20175,138100.0045,845,5301.00NoNoJul 15, 20140-100.005,372,9240.00NoNoJun 30, 2014198,705-51.68248,1911.00NoNoJun 13, 2014411,2050.00492,0001.00NoNoMay 30, 2014411,205100.003,496,8601.00NoNoSourceAre they closing their positions, as they expect the company to rebound?We don't really know, but there is one sure thing. When they buy back to close their short position, the share price tends to increase.ConclusionECMH needs to do quite a bit of work to regain the confidence of the market. New financial statements need to be issued and new information about its operations must be disclosed. We need to be alert, as if the new press releases are appreciated by the market, the share price could increase.To sum up, momentum players are back in ECMH.We will be updating our subscribers as soon as we know more. For the latest updates on ECMH, sign up below!Image courtesy of Buyer's Corner Realty via FlickrDisclosure: We have no position in ECMH and have not been compensated for this article.

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