Ethos Media Network Inc (OTCMKTS:EOMN), now Reliance Global Group, has turned bullish after coming under immense pressure in the first half of the year. The stock is already up by more than 1000%, as the upward momentum shows no signs of exhaustion.
Catalysts Driving Upward Momentum
The spike has not come on speculation but on investors taking note of the company’s improving growth prospects. The company has embarked on an aggressive restructuring drive supported by an aggressive acquisition campaign.
The company has already completed a number of acquisitions, as it continues to strengthen its prospects in the insurance sector. Investor’s sentiments in the stock have since inched high depicted by high turnover in traded shares in recent weeks.
Ethos Media is fresh from announcing a strategic partnership with The Referral Deport. It has also confirmed the acquisition of 100% of Employee Benefits Solutions and U.S Benefits Alliance. In addition, the company has confirmed it is in the process of acquiring a niche insurance agency with operations in New Jersey, New York, and Pennsylvania.
The stock has since resorted to trading in a steep uptrend as investors react to a string of positive developments. The upward momentum also appears to have gained pace on the stock breaching a key psychological level at the $0.1 mark.
A closer look at the chart above, it is clear the stock faces immediate support at the $0.1 mark on any pullbacks, after the recent swing higher. Above the $0.1 mark, Ethos Media Network remains bullish’ and should continue climbing high.
About Ethos Media Global
Ethos Media Network owns and operates numerous companies spanning various industries after a recent rebranding to Reliance Global Holdings. The company’s core business revolves around the real estate and insurance sector. Before rebranding, the company engaged in the acquisition production and distribution of multimedia programming content in the U.S
Michigan Insurance Agencies Acquisition
Ethos Media Network has taken a flight in the market on investors taking note of the company’s push for growth in the insurance sector. The company has carried a string of acquisitions as it continues to strengthen its streams of revenues.
In October, the company confirmed its first acquisition on acquiring a 100% stake in Employee Benefits Solutions (EBS) as well as the U.S benefits Alliance. Acquisition of the two-Michigan based insurance agencies is a significant development as it goes a long way in strengthening the company’s operations on the sale of health insurance products.
The acquisition of agencies also appears to have caught investor’s interest in the fact that such entities do not bear too much insurance risks compared to insurance carriers. The two agencies generated revenues of about $914,000, last year from commissions on insurance premiums.
”We are delighted with EOMN’s first acquisitions in the insurance agency business, and we intend to continue to acquire companies in this sector and real estate. We have significant experience in both sectors, and, at the appropriate time, we intend to become an SEC-reporting company again,” said CEO Ezra Beyman.
In addition, Beyman, Ethos Media Network has confirmed the signing of Letter of Interest for the acquisition of 100% inserts in a niche industry agency. The agency up for acquisition boasts of operations in New Jersey, New York, Pennsylvania, and Maryland.
The proposed agency generated revenues of $510,000 last year, on placing insurance premiums of $5.7 million. The company looks set to generate revenues of $600,000 in the current financial year.
Ethos Media Reliance has also entered into an exclusive six-month agreement with The Referral Depot (TRD). Under the agreement, the company is to assume full management control of TRD. The agreement allows Ethos Media to leverage TRD’s one of a kind software referral program designed for the insurance sector.
The software at the center of the partnership seeks to make it simple for insurance professionals to refer business to other insurance professionals for a commission. Reliance has the right to purchase TRD outright, at the end of the six-month agreement. Ethos is also entitled to own all revenues and commissions earned from TRD software in perpetuity even on the expiry of the agreement.
Ethos Media Meteoric rise to record highs comes on strengthening growth metrics in the insurance sector. The company has completed the acquisition of two key insurance agencies poised to strengthen its streams of revenues. In addition, the company is on course to complete two other acquisitions as it continues to expand its footprint in the insurance sector.
The stock looks set to continue climbing high on investors taking note of the company’s growth prospects and ability to generate shareholder value. That said any pullback, close to the $0.100, should act as a buying opportunity as the stock is poised to continue climbing high.
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Disclosure: We have no position in EOMN and have not been compensated for this article.