There were very few news about the development of Elray Resources, Inc. (OTCMKTS:ELRA
, ELRA message board
) in the past months, but things quickly changed in the end of October as the company decided it was time to create some hype before their latest quarterly report.
Things, however, aren't as rosy as they want you to believe and this is shown by their financial filing for Q3 of this year, which just added to the inconsistent movement of the company stock, which was falling since May this year.
- cash: $55
- current assets: $36 thousand
- total assets: $44 thousand
- total liabilities: $4.6 million
- revenues since inception: $0
- quarterly net loss: $1.1 million
This doesn't seem like a profitable company does it? Investors around forums don't think so either. While there are still people touting the company stock, because they have already bought in, there are those that consider ELRA to be a scam with its switch from being an exploration company to online casinos and bitcoin gambling.
What bothers us the most is the fact that they announced the launch of their Golden Galaxy Online Casino way back in June and we still don't see any generated revenues. If they are making any money, where are they going to? We certainly don't see them in their financial filing.
This is the particular reason for ELRA's erratic movement in the charts. For no apparent reason ELRA started the week with a 186.5% gain in price, over the course of Monday's and Tuesday's sessions, with a massive 7.6 million shares traded on Tuesday, that generated $955 thousand in dollar volume.
Yesterday's session, however, went worse and the stock lost 31% of its value, while a total of 3.1 million shares switched hands registering a small $246 thousand dollar volume. Again, this happened with no press releases and no other signs that could suggest a drop.
By now, it seems that the only online betting service that the company is providing is with their stock, which isn't stable, as the chances of predicting where it will go are probably worse than playing slots. If taken literally, the slogan in their logo actually says it all - "You can bet on us."
This is the exact reason for which we would advise you to do a lot of due diligence and weigh out the risks if you have any thoughts of investing in this stock. On the other hand, if you are looking for some gambling adrenaline, ELRA might be the perfect fit for you.
Fresh Healthy Vending International, Inc. (OTCBB:VEND) also crashed hard yesterday after a very decent climb, as it lost 29% of its value. Alkaline Water Company, Inc. (OTCBB:WTER) managed to recover the previous day's loss and climbed 35% up in price.