{"id":5073,"date":"2014-11-04T14:12:36","date_gmt":"2014-11-04T14:12:36","guid":{"rendered":"\/?p=5073"},"modified":"2014-11-04T14:12:43","modified_gmt":"2014-11-04T14:12:43","slug":"elray-resources-inc-otcmktselras-volatile-swings-continue","status":"publish","type":"post","link":"\/articles\/elray-resources-inc-otcmktselras-volatile-swings-continue\/","title":{"rendered":"Elray Resources Inc (OTCMKTS:ELRA)&#8217;s Volatile Swings Continue"},"content":{"rendered":"\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: right;\" src=\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/88\/88427\/elra_6m_450x350.png\" border=\"0\" width=\"400\" height=\"311\" \/>Elray Resources Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a>) should publish their Q3 report within the next couple of weeks and we&#8217;re pretty sure that plenty of people are rather eager to get their hands on it. We, for one, are also willing to take a look at the 10-Q because it should answer quite a lot of questions.<\/p>\n<p>It should tell us, for example, whether <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a><\/strong> have finally changed the location of their corporate headquarters. The current one is in Las Vegas and once you do some research, you&#8217;ll see that it&#8217;s a virtual office which appears to be used by many other OTC companies like Global Resource Energy Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GBEN\">GBEN<\/a>), Rimrock Gold Corp (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=RMRK\">RMRK<\/a>), Patriot Gold Corp. (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PGOL\">PGOL<\/a>), American Graphite Technologies Inc (OTCBB:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=AGIN\">AGIN<\/a>), Glow Holdings, Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GLOH\">GLOH<\/a>), and Alkame Holdings Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ALKM\">ALKM<\/a>). <\/p>\n<p><strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a><\/strong>&#8216;s next 10-Q should also tell us whether the management team has somehow managed to strengthen the balance sheet a little bit. As you probably know, the company&#8217;s financials weren&#8217;t too encouraging at the end of the second quarter. Here&#8217;s a summary of the figures in case you haven&#8217;t seen them already:<\/p>\n<ul>\n<li>cash: $99 thousand<\/li>\n<li>current assets: $193 thousand<\/li>\n<li>current liabilities: $9.7 million<\/li>\n<li>quarterly revenues: $45 thousand<\/li>\n<li>quarterly net loss: $1.5 million<\/li>\n<\/ul>\n<p>Recent press releases tell us that things around <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a><\/strong> and its newest acquisitions are going well. They said last week, for example, that wagering in one of their live dealer casino facilities has exceeded $10 million for the month of October which sounds good enough, but only the balance sheet can tell us if the huge growth in revenues can be turned into a positive bottom line.<\/p>\n<p>The most burning questions that the 10-Q can answer, however, are related to the share structure and the absolutely catastrophic dilution that is taking place at the moment.<\/p>\n<p>As we mentioned in our previous articles, the number of issued and outstanding shares shortly after the last reverse split stood at <strong>just over 5.6 million<\/strong>. That was <strong>in May<\/strong>, but<strong> by August<\/strong>, the O\/S Count had grown to <strong>nearly 140 million<\/strong>. A Schedule 13 form from <strong>October 3<\/strong> tells us that at the beginning of last month, it was hovering <strong>around 490 million<\/strong> and a more recent statement of ownership informs us that it&#8217;s bordering on the <strong>590 million mark<\/strong>. An 8-K from October 30 tells us that a further <strong>248 million shares<\/strong> will be issued to various entities as a conversion of <strong>$755 thousand worth of notes<\/strong>. Plenty of people are speculating on the O\/S count at the moment, but the truth is that we won&#8217;t be able to say for sure what it actually is until we see the Q3 report.<\/p>\n<p>All in all, there&#8217;s a lot of uncertainty around<strong> <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a> <\/strong>at the moment and there&#8217;s not much investors can do but hope that the next 10-Q can clear most of the doubts. But does this mean that you should stay away from the stock until we see the report?<\/p>\n<p>That, of course, is up to you to decide. Just make sure you bear in mind the ticker&#8217;s extreme volatility before you jump in. Last week, for example, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ELRA\">ELRA<\/a><\/strong> smashed through the $0.001 barrier and in a matter of a single day, it managed to surge to $0.0035 per share. During the very next session, however, it incinerated a whopping 57% of its value and it once again dropped to just $0.0015. Friday saw it recover around 35% which means that it&#8217;s starting the new week at just under $0.002, but we doubt that, with the volatile swings in mind, someone is willing to run the risk of predicting what its next move will be. That&#8217;s why, carefully thinking through every single move is absolutely crucial.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elray Resources Inc (OTCMKTS:ELRA) should publish their Q3 report within the next couple of weeks and we&#8217;re pretty sure that plenty of people are rather eager to get their hands on it. We, for&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[50,1384,1134,24,976,977,1501],"class_list":["post-5073","post","type-post","status-publish","format-standard","hentry","category-news","tag-agin","tag-alkm","tag-elra","tag-gben","tag-gloh","tag-pgol","tag-rmrk"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=5073"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5073\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=5073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=5073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=5073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}