Gex Management Inc (OTCMKTS: GXXM) Hits A Bottom, Bounce Due

Gex Management Inc (OTCMKTS: GXXM) appears to have reached a bottom if consolidation at all-time lows is anything to go by. The stock has resorted to trading in a tight trading range after succumbing to short selling pressure over the past year.GXXM Share Price AnalysisAfter shedding more than 80% in market value, the stock could as well bounce back on reduced activity in the downside. As it stands, short sellers appear to be no longer interested, in pushing the stock lower as was the case the better part of last year.Reduced market activity means that any positive news could go a long way in reinvigorating the company‘s sentiments, consequently trigger a bounce-back of the stock. The announcement that the company has inked a strategic partnership with an Ohio based healthcare group is a development that could help trigger a bounce back.A deal with healthcare facility for staffing services perfectly aligns with the company’s growth strategy. A strong third quarter financial results is another development that signals GEX Management is not bad off, as depicted by implosion in share price. GXXM Daily ChartGiven that the stock did succumb to short selling pressure last year, it first needs to rally and take out the $0.01 mark, to emerge as an exciting bounce back play. Above the $0.01 technical level, the stock’s next stop would be the $0.04 mark, a crucial resistance level.A rally followed by a close above the $0.04 mark, should reaffirm the emerging uptrend setting the stage for the stock to complete a comeback from all-time lows.What Does GEX Management Do?GEX Management is a business management company that provides payroll processing, human resources, and staffing services. The company provides strategy consulting as well as comprehensive back office services to businesses in various sectors.Ohio DealAfter a long period of inactivity, GEX Management has shone back to light on the confirmation of a strategic partnership with an Ohio-based healthcare group. Under the terms of the agreement, the company is to provide staffing as well as HR Management and payroll processing services for Meritra Health.The company is tasked with the responsibility of managing the healthcare group’s growing staffing services needs as it moves to meet healthcare needs across Ohio

“Meritra has a proven model of providing transformational inpatient care through its healthcare service centers in Ohio. GEX is excited to partner with Meritra in helping create staffing and service synergies to support their model aimed at providing the best quality patient care at affordable costs,” said Mr. Sri Vanamali, GEX Executive Director.

The company’s chief executive officer expects the deal to open the door for more similar deals and help support the GEX Management growth strategy.Revenue and Earnings GrowthThe strategic partnerships come on the heels of GEX Management confirming a robust third quarter that saw it execute a strategic partnership with long term factoring partner. In the quarter, the company registered a 23% increase in revenue leading to a 384% increase in net profitsThe company delivered revenue and earnings growth even experiencing a number of challenges in the quarter.

“Despite the capital constraints typically faced by minority businesses in the highly competitive professional staffing and services ecosystem, GEX has once again proved very strong resilience by executing solid results for the quarter,” said Mr. Vanamali.

Amidst a string of challenges, the company continues to build a robust organic and inorganic pipeline in the staffing and professional service space. Solid commitments from business partners all but point to a bright future as the company continues to build a name for itself in the staffing business. Going forward the company intends to partner minority and women-owned businesses as part of its growth strategy.Bottom lineGEX Management finds itself in a tight spot after taking a significant hit in 2018. With the stock languishing at all-time lows, it needs groundbreaking catalysts to boost its market sentiments key to enjoying a higher valuation in the market.As it stands, it is highly unlikely that the stock will continue to edge lower given that it appears to have hit a bottom. Positive news, as well as developments, should go a long way in shoring the stock’s sentiments; consequently, fueling a bounce from current lows.We will be updating our subscribers as soon as we know more. For the latest updates on GXXM, sign up below!Disclosure: We have no position in GXXM and have not been compensated for this article.