Yesterday, the U.S. authorities made a decision that is about to revolutionize online gaming by allowing each state to legalize internet poker, as well as online betting on sporting events and contests. Later on, Elray Resources Inc (OTC:ELRA) recorded what turned out to be its best market performance for the last six months. So, are these two events interconnected?
As you might have known, the ansewer is YES. Without a shadow of a doubt. After all, ELRA defines itself as a consulting company specialized in managing, marketing and operating online casinos. That is why, any governmental step to reverse the conservative gambling policy it has stuck to for the last several decades gives companies like ELRA the green light to quickly expand its business.
Investors must have felt the same because ELRA hit a double record yesterday. On the one hand, it gained a staggering 190% in value closing trade at $0.0139 per share, ELRA’s highest market value since early-June. On the other hand, ELRA shifted a stunning 21.5 million shares, which is the highest turnover ELRA has ever made.
Trading on the OTCQB, Elray Resources Inc is a registered SEC filer. In this respect, the company has so far kept a fairly transparent financial policy. ELRA’s latest 10-Q came up in mid-November. Covering the period ended Sept. 30, 2011, the quarterly report disclosed:
- zero cash and current assets;
- negative net worth of $45 thousand;
- net quarterly loss of $13 thousand.
Whatever the company’s managers have been doing so far, they need to take it on the next level if they want to grow their business and thus maximize stockholder value. Considering the drastic change in gambling policy, this might well be the right moment for that.
