Yesterday, Elray Resources, Inc. (OTC:ELRA)
put on one of its best recent market performances fueled by a classic mix of news and paid advertising
Closing trade at $0.0085, ELRA edged up almost 40% in value on a volume of more than 1.6 million, or two times higher than the average trading volume for the company. Thus, ELRA registered its highest percentage gain for the last two months or so.
ELRA's spectacular market run came hard on the heels of a brand-new press release. The latter served to inform investors about 'a binding Letter of Intent' with an offshore company with regard to the prospective acquisition of a gaming company based in Macao, China, whose primary business involves promoting a number of luxurious gaming facilities in what is considered the world's 'largest gaming market'.
In an effort to capitalize on the news, a third party approached TheStockWizards to raise awareness about ELRA stock during yesterday's session. TheStockWizards reported to have received 10 million shares of 144 restricted stock as compensation for the advertising campaign.
As a result, ELRA stock went up considerably. Yet, the stock is still going sideways as far as its chart movement is concerned, which makes it fairly difficult to predict if ELRA will head for a definitive trend in the immediate future.
ELRA closed the third quarter of 2011 with zero current assets and a working capital gap of $85 thousand. What is more, the company has not generated a single cent in revenue, hence the net quarterly loss of $13 thousand. Considering that the company has not disclosed how exactly it will finance the prospective acquisition mentioned above, it will hardly involve any real cash. However, if everything goes according to plan, ELRA might finally start generating the long-awaited revenue.