Encompass Holdings (ECMH)

[Sparks100]

You cannot change the facts, PD.

1) ECMH directors exchanged their Common Stock for Preferred.
2) About 2 months after the exchange, a R/S was conducted on the
Common Stock.
3) The R/S did not affect the Preferred Stock.

There is no way you can whitewash this action, PD.

Control of the company was not the issue, but just more whitewash. The directors insulated themselves from the effect of the Reverse Split. It is that simple.

The rate of the conversion of the Preferred to Common was not changed along with the R/S, so the directors at ECMH gave themselves a 30 to 1 increase in their conversion potential of common stock. This cannot be excused and it cannot be explained away either. Any investor who looks at those events can only come up with one conclusion: ECMH put it to the Common Stockholders. There is no twisting this around to make it look innocent. There is no twisting this around to make it look like it was in the Common Stock holders best interest. The Directors knew what they were doing and put it to ECMH's shareholders.

What is really disturbing is that even after this, ECMH was still being hyped as a good investment. Those who hyped the stock should have known better, unless they had some ulterior motive to support the company while knowing the company was taking from the shareholders.