Encompass Group Affiliates (OTC:ECGA) has been trading in the $0.0002 to $0.0004 range for quite some time now. However, about two months ago on October 1st of 2009, the penny stock peaked at $0.001 but slowly went back down with time. The real question is will this penny stock ever go back up and past the mark? Only time will tell.
Currently, the price is about $0.0003 which is pretty cheap; however, there are over 13 Biliion shares outstanding. The average daily trading volume usually varies anywhere between 10M and 50M.
The revenue posted for the third quarter earnings ending in September 2009 were about $22.97M, a slight decrease from last year's third quarter earnings of $27.49M; however, the total liabilities decreased from $60.12M to about $55.45M which shows that the company might be trying to pay off its debt.
On a good note, Gross Profit slightly increased from $5.91M to about $6.45M comparing 3rd quarter earnings ending in September 2008 & 2009 respectively. In addition, the company's equity increased from $11.59 million to about $13.85 million.
Encompass Group Affiliates is a business that specializes in reverse logistics providing services such as repairing consumer electronics and computer equipment, parts procurement, and distribution services.
Recently, Encompass Group Affiliates (ECGA) has expanded its operations into mexico with the opening of a distribution & reverse logistics facility and has also entered into Canada with a new distribution and service facility.
The company has recently acquired two new clients: ESI and Ardus Medical. Encompass Group Affiliates has announced that it will become a provider of parts for ESI in addition to providing call center support services. The company will be providing Ardus Medical with repair and engineering development services. A few months ago, Encompass Group Affiliates entered into a strategic partnership with Hyper Microsystems Inc.
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