Powerful Ending of May for HeadsUp Entertainment (PINK:HDUP)

If investing in pink sheets is sometimes considered to be similar to gambling, how would one refer to investing in a pink sheets poker-oriented enterprise? This is the case of HeadsUp Entertainment(PINK:HDUP) – optimistic recent stock performance, limited information label, controversial balance sheet and great news. 

So, a 10% increase in the stock price in the last session of May, making up for more than 200% for the whole month, the last few sessions making up for the most of that increase. What is more, an all- time high in terms of volume of traded shares was reached yesterday. The session closed at $0.07, although a $0.1 psychological limit was also reached at one point during the day. The catalyst for the above trading frenzy – an announcement from yesterday about an agreement for Tropicana Las Vegas resort and casino to host the CPT during the 2011 World Series of Poker. Great news, indeed.

On the other hand, exactly one month ago another important piece of information about the company came out. It was the annual report with an end date Jan, 31st. 2011. Unaudited, as usual, but still a good source to look into. Among other figures, it includes: [BANNER]

So, these are the annual figures. One question that comes to mind – how does a company with $5 in cash operate and pay salaries? And it was not much different back at the end of Jan, 2010 when the cash available was $1,8k. Much interesting data, which however, has little impact on the stock market. The truth of the matter is that HeadsUp has been in the process of making financial information available again. The last SEC filings date back from 1998 and it was not until last year that the company started filing financial statements again.

In terms, this means two things. HDUP might be on the right road, walking the extra mile to bring confidence in investors and add value to the stock. Yet, it is a long and uncertain way to go.