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Great news, BBG! Thanks for sharing.
Thanks, no problem. I am also buying up a few at these levels. This just seems very undervalued, IMO.
I hear you and don't blame you. I think we are all ready for this to start showing some forward momentum.
Hey RD...I wouldn't be worried about this.
"Lorem ipsum" Greek copy is commonly used as filler copy while the real copy is being developed. When designing websites, print ads, etc. designers place it in to show hom much room there is for copy or just until the finished copy is ready to place in. I am in advertising and see this almost everyday.
However, it is typically just for internal use and never to be seen by the public eye...so it looks as though they mistakenly put this page up while it is still under construction...or it slipped through the proofing process.
ELRA's Macau Gaming Acquisition Results in .10 Price Target
http://www.wallstreetnewscast.com/news/2012/may/elra-3743.html
ELRA's Macau Gaming Acquisition Results in .10 Price Target
By: staff reporter, Tom Bustamante
Last Updated: May 31, 2012 - 1:35pm EST
(NEW YORK) --(NEW YORK) --Ludlow Capital, an equity research firm based out of New York City, issued a $0.05 to $0.10 price target on Elray Gaming, Inc, which is traded under the name Elray Resources, Inc (OTC:ELRA), based on the acquisition of Macau gaming company, Golden Match.
Elray Gaming announced a definative agreement that it has completed the acquisition of Macau gaming company, Golden Match. The company's principal business activity is a profit sharing agreement with a VIP Room Gaming Promoter, the terms of which they receive 80% of the profit stream from the Promoters, which currently participates in the promotion of many major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world.
The company has negotiated a profit sharing agreement with Cali Promocao de Jogos Sociedade Unipessoal Lda. (CALI), a company duly incorporated under the laws of the Special Administrative Region of Macau, and promotes Casinos in Macau SAR pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macau SAR.
Over the past 5 months, CALI generated approximately $17 million (US) in profit, after tax.
ELRA Merger Valuation
Taking that $17 million profit into consideration, a rough fiscal year net profit for CALI would be in the range around $37 million, after taxes. If given a 80% profit sharing bases, that would give Golden Match, and thus ELRA, a yearly net profit of around $29.6 million,
ELRA currently has around 700 million shares issued and outstanding, but for the sake of closing the merger, and estimating for dilution to close the deal, even at high-range of 3 billion shares issued and outstanding, that would still give ELRA an EPS estimate of around $0.01 EPS. At a 10 times multiple, that would give ELRA a speculative price range target of $0.10 per share.
NASDAQ Listing
In 8K filed May 9th, the Company announced plans to listing on the NASDAQ or AMEX exchange through a 100:1 reverse split. Although many investors hear reverse split and head for the hills, under the current deal this move may be a positive for investors at this level. Under the agreement, the Company has issued the shares for the merger, which consisted of an all preferred deal, which is good for the common shareholder. Now, if they had conducted the reverse split, and then issued the shares for the acquisition, that would have been a negative for shareholders. But under this agreement this should turn out to be a positive.
In addition, to file your application to list on the NASDAQ or AMEX, a stock needs to maintain a minimum price level of around $3.00 to $4.00 a share, thus under this plan investors should not see any filing to reverse split the stock until the price reaches a minimum of $0.03 to $0.04 per share.
But, post split, investors would then be holding shares of a large Macau gaming stock, with strong revenues and profit, that would be traded on the NASDAQ or AMEX, and would then become marginable, and could be recommended by retail brokerage firms. With all this in consideration, this move may end up being a strong positive for the individual shareholders on ELRA.
Based on the value estimates of other publicly traded Macau gaming companies, a conservative PE of 10 to 15 would still give ELRA a post merger estimate of $0.10 to $0.15 per share, or a conservative $300 million post-merger market capitalization. Thus, Ludlow Capital has issued a near-term target on ELRA in the range of $0.05 to $0.10 per share. (or $5.00 to $10.00 post-NASDAQ listing)
Cali currently has agreements in place are with MGM Grand Macao, a division of MGM Resorts International (NYSE:MGM), the Venetian, Wynn Resorts, Limited (NASDAQ:WYNN), Galaxy Entertainment Group Limited (HKG: 0027), and City of Dreams.
Yesterday's news just hit the Global Newswire...
http://www.globenewswire.com/newsroom/news.html?d=256212
Yes, I saw that. However, the stocks that I referred to also stated "no change in share structure" in their PR, then later came out with new PR that advised of a R/S. So, I was just speculating on the quickest way to uplist at the current pps range.
This is 100% speculation on my part...but it will be interesting to watch how IAHL will handle the desire to up-list and how quickly they want to do it. NASDAQ requires a minimum $4 per share to be listed (among other benchmarks). I have owned stocks in the past that have done a reverse split in order to get the PPS to qualify. So, if this runs to a $2 and they do a 2-1 reverse split, then each share will be worth $4 a share and would then qualify. However, with such a low float here, I find this highly unlikely.
Again, this is just me thinking out loud...and again, it should be interesting to see how they work toward this goal. Of course, the easiest way would be to have the stock shoot up to over $4 a share.
I know there are other exchanges they are considering, so NASDAQ may not even be on their immediate radar.
Last week's news hit GamingToday.com
http://gamingtoday.com/articles/article/36051-Elray_Resources_Inc_acquires_shares_of_Golden_Match