Sunday, November 9, 2014

Elray Resources, Inc. ELRA - What Stands Out

I own shares and recommend buying ELRA stock, and here is a summary of why it stands out from other penny stock plays.

Real revenue - a rarity among penny stocks.  For Elray Resources, it has real revenue per its most recent 10-Q statement for the quarter ending June 30, 2014.  It generated $45,000 of revenue in this quarter due to a 12 month consulting contract to manage a casino's back-office operations.  This is a 12 month contract for $250,000 per the 10-Q and not only does it bring revenue, but it puts ELRA out there and adds to its expertise.

In addition to that, a promising announcement was made for Elray Resources for the month of October.  A joint venture it is involved in, a gaming casino in Manila, generated $10,000,000 of wagers during October.  The expected yield per Elray's press release is 2.5%, which equates to $250,000 of revenue.  With that, the revenue for Elray Resources is based on its JV ownership percentage.

Furthermore, the company acquired for preferred shares, and that will generate immediate revenue for Elray as well per the company.  Also, was acquired with the same type of deal, and should have further revenue to add to ELRA.

This information shows that Elray Resources has real revenue and with earnings due out this coming week, we should learn more about what has come in so far and to what it expected.  Also, we will learn more about how to annualize these growing revenue streams.

As stated, I rate this stock as a buy and in full disclosure, am long ELRA.

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