Envoy Group Corp (OTCMKTS:ENVV)
Shares of Envoy Group Corp (OTCMKTS:ENVV) are down over 60% after the OTC markets designated trading in the shares as “Caveat Emptor” – buyer beware. Volume for ENVV shares is larger than normal Over 4 million shares traded hands by lunch in a stock that has an average daily volume of barely more than 600,000.
The “Caveat Emptor” designation is typically assigned to a stock when there may be reason to exercise additional care and perform thorough due diligence before making an investment decision in that security. A review of Envoy Group Corp (OTCMKTS:ENVV) publicly available information reveals that care may indeed be warranted.
According to the OTC Markets website, Envoy Group Corp (OTCMKTS:ENVV) has over 92 million shares outstanding with a market cap of over $77 million. The float on the stock (the number of shares actually available for trading) was 23.7 million shares. The company last filed a form 10-Q with the U.S. Securities and Exchange Commission on July 11, 2017 for the period ending July 31, 2016. Interestingly, the company self-reported its industry sector as “Nursing and Personal Care Facilities”. Even more interesting is that a quick glance at the balance sheet reveals the company reporting assets, and revenues, of $0.00 – zero.
The website that visitors are directed to from the OTC Markets Company Profile page is that of BitReturn. BitReturn is presented to the public as a subsidiary of Envoy Group Corp (OTCMKTS:ENVV) dealing in bitcoin. No mention of nursing or healthcare is found on any website attributed to Envoy Group Corp.
It appears that Envoy Group Corp (OTCMKTS:ENVV) may have been capitalizing on the bitcoin frenzy as investors tried to search out low-cost stocks in an effort to leverage the growth of the burgeoning industry.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.