Encompass Group Affiliates, Inc.(fka ECGA)

[pual]

The following is the scenario I hope for (cannot be more affirmative yet). Let's see if it does or not happen in time.

For this to become something else than a toy, considering progress made over the last year or so, I would not be surprised if, sooner than later, the company decided to implement a serious R/S so the PPS and volume of O/S reflected a more serious company being re-established.

A first step could be a 1:100 R/S (25,000,000 O/S) would make the PPS + or - $0.17. (fist half 2005)

A second step would be to generate a positive bottom line (end of 2005 or early 2006)

A third step could be a second R/S (1:10) to bring the PPS of 3,000,000 O/S in the dollars range (2006)

Finally, the stock could be taken to a real market such as AMEX as an example.(end of 2006).

Therefore (recent moves justifies trusting management) playing this stoch LONG (2 years horizon) make sense.

However trading it in and out along the way is a game that many may play making money along the way.