Trader’s Corner

U.S. Internet Gaming and Betting Changes (CRYP, GME, ELRA, CHDN, PENN)

Posted on January 2, 2012 by Jennifer Romano

Revising a Free Market Policy Could Generate New Tax Revenues…

This week online gaming stocks like CryptoLogic Limited (NASDAQ:CRYP), GameStop Corp. (NYSE:GME), and Elray Resources Inc (OTC:ELRA) (now Elray Gaming) and para-mutal online horse betting plays like Churchill Downs, Inc. (NASDAQ:CHDN) and Penn National Gaming, Inc (NASDAQ:PENN)were all given in a gift in the form of a policy change of the Justice Department’s longstanding position that all forms of online gaming are illegal in the U.S.

Yesterday the Dept of Justice said it was easing up on its ban of internet gamingand I think that’s due to Federal-to-State “Stimulus Dollars” being spent, there might be a large pool of “State Tax Revenues” to be gained via online gaming.

The DOJ released a legal opinion noting that federal law doesn’t cover online betting that’s not related to sporting events. The 2006 law was brought about by President Bush essentially stopping banks from processing money based in online wagering.

It’s now theoretically a “States Rights” issue; and this from a Democratic DOJ and White House. States can move quickly to tax; and the “Wire Act” reversal may even one day lead to a further policy revision that now stops at betting on sports related events as opposed to poker for example. The DOJ interpretations will no doubt follow as online lotteries breed.

Games of chance just got a huge break in my opinion and big caps, mid caps, and small caps all have the opportunity to prosper whether hardware manufacturers, software makers, marketing plays, or actual web sites.

Each of the stocks mentioned above, of varying price ranges and market caps, stand to benefit (which requires a lot of extra due diligence) and of course gaming shares, even brick and mortar establishments, have all seen share valuations rise.

It’s also my opinion that with the reversal will come a lot of new players into the online betting field and some interesting partnerships and coalitions are bound to develop.

This article written by Dennis Askew:

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.

Dennis Askew is a paid contributor of the SmallCap Network. Dennis Askew’s personal holdings should be disclosed above. You can also view SmallCap Network’s complete disclaimer and disclosure.

Elray Gaming (ELRA)

Posted on December 27, 2011 by Jennifer Romano

ELRA Chart Elray Resources OTCQB: ELRA

Current Price: .0139

Elray gaming was formed in 2011 when a group of well established and successful Online Casino marketing specialists identified an opportunity: the market need for legally compliant, professional and qualified consultants to effectively manage, market and operate Online Casinos, Financial Products, Bingo Rooms, Social and Fantasy Games.

Research ELRA
www.elraygaming.com

ELRA gaming operations are based in Sydney, Australia. The company is managed by its online gaming founder, Brian Goodman, and gaming operations are carried out by a multi-lingual team of gaming professionals.

ELRA has offices in the USA, London, South Africa and Mauritius and has support facilities in Israel, Curacao and the Philippines.

ELRA is a developer of turnkey gaming products, and is currently developing a host of social networking and mobile applications for the investor community.

ELRA is in the process of launching a Joint Venture product with one of the world’s largest global financial service providers and will provide a financial trading platform offering real money financial service trading facilities (non USA) as well as a Fantasy Trading / Social Networking products in Stock, Options and currency markets.

ELRA will offer both web and mobile-based FOREX trading platforms to take advantage of the increased interest in currency trading from around the world. The Company will look to develop these platforms to comply with both local and international regulations.

ELRA will launch a suite of products aimed at capitalizing on the rapidly growing Social Network and Fantasy Markets. All products will be accessible via the web as well as smart phones, and will allow a network of active investor community. These products will provide Elray Gaming an additional growth component in its online gaming portfolio, and develop an active network of customers interested in the financial markets.

ELRA currently manages a comprehensive range of online gambling products including branded Online Casino’s and a Bingo room. Internet casinos and Bingo rooms are online versions of the traditional land-based casinos. Online casinos allow gamblers to play and wager on traditional casino games as well as play Bingo via the Internet.

According to Global Betting and Gaming Consultants (“GBGC”), the global gaming market, excluding the U.S., is expected to grow to approximately $13.9 billion per year by 2012.

Internet gambling revenues for offshore companies was estimated to be $5.9 billion in 2008 from players in the United States and $21.0 billion from players worldwide, according to H2 Gambling Capital.

The Unlawful Internet Gambling Enforcement Act of 2006 (“UIGEA”) became U.S. law in late 2006 and effectively curtailed legal participation by U.S. players in online gambling.

As a result of the passing of the UIGEA, many online gaming companies had to shift their business models to prevent U.S. player participation. Complying with online gambling law requires sophisticated Internet and financial compliance techniques and many companies were unwilling or unable to comply.

A number of companies have been unable to overcome the technical and financial challenges caused by the passing of the UIGEA with the result that they have been unable to replace lost revenues to the extent necessary to be viable operators.

As a result, opportunities exist for acquisitions and joint ventures by the compaies such as ELRAY GAMING that are scalable and set to comply with U.S. online gaming laws.

For smaller operators, the passing of the UIGEA effectively curtailed many operations as they were unable to make the transition to an off-shore dominated clientele. Elray Gaming believes that this has created opportunities for growth by acquisition and joint ventures.

The activity of these sites could easily be absorbed into the operations of ELRAY GAMING without a significant proportional increase in costs. Additionally opportunities exist in acquiring operators currently using ELRA for management of their gaming operations.

ELRA Managed Brands

ELRA

Based on our research and the company’s recent increase in revenue projections, The Stock Wizards believes ELRA could be a dominating force in the Online Casino space and we encourage our subscribers to keep ELRA on their radar! Read the rest of this entry »

#1 Reason People Fail Trading Penny Stocks

Posted on July 14, 2010 by Dana Salvo

How do you know when a penny stock is undervalued or overvalued? If you are new to penny stock trading this is very important. The difference in your timing of getting into a penny stock can be either huge gains or huge losses. Thestockwizards.net prefers the huge gains.

What we are going to do today is look at a few examples so you understand when you should be getting in a stock or getting out of a stock. We are talking about penny stocks not big board stocks in these examples just to make that clear.

Let’s use some examples of penny stocks that made huge gains in 2009. This was a year of biotech, medical equipment and pharmaceuticals in the penny stock arena. So the stocks we will use are from these sectors.

The first stock that we will talk about is the one that could’ve made us all rich and well-off, if we just had 20-20 hindsight.

VRMLQ: This is a stock that was a life changer for a few traders in the penny stock world. The stock went from .05 to as high as $23, that’s right $23. Now you are wondering what made the stock go so high Read the rest of this entry »

Small Cap Traders & Investors Beware of the Rat Pack Market Makers: Possible Short Squeeze in KATX

Posted on May 30, 2010 by Dana Salvo

In The Fall of 2009 when Bio-Tech Penny Stocks were dominating the market, The Stock Wizards had noticed a certain group of market makers working together to bring down certain OTCBB stocks. This Group of market makers is as follows: CHDN SSGI NOBL PUMA and STXG.

We have labeled this group of market makers as the RAT PACK. We’ll use another term for these market makers “Gang Bangers”. They look for Penny Stocks that have very high Market Caps. TSW noticed this week that the RAT PACK has an interest in a penny stock called KAT Exploration – KATX on the pink sheets. (See level 2 Example).

Read the rest of this entry »

Information Is The Most Valuable Commodity When Trading Stocks

Posted on May 4, 2010 by Dana Salvo

So you want to get into the game of day trading stocks? Whether you’re a rookie or veteran of the stock market, The Stock Wizards encourages traders and investors to look for stocks with forward-looking events. What is a forward-looking event? A forward-looking event is when a company announces publicly through a press release that there will be some kind material event that will affect the company in the future. Another way of looking at it is using the term Catalyst.

How do we find such companies? We gather as much information about a company as we can before investing our hard earned money. Information is the key word here. Remember Michael Douglas’s famous quote from the movie Wall Street? “The most valuable commodity I know of is information, wouldn’t you agree?” And let’s not forget the high tech society we live in today. Information is right at our fingertips so there are no excuses for not doing the research. A little research goes a long way when searching for companies with forward-looking events. Read the rest of this entry »

The Stock Wizards Launches Its New Trader Tool Bar!!

Posted on April 15, 2010 by Dana Salvo

The Stock Wizards.net Introduces the New Trader Toolbar.

Some of the Features Include:

*** Free Level II At Your Fingertips

*** Bloomberg Live TV

*** Get Real-Time Trade Alerts and Updates right through your Browser during Market Hours.

*** Radio Player Built Right into the Browser. Really Hot!!

*** One of Our Favorite Features is the E-Mail Notifier.

Set up and control all your e-mail accounts through this future.

There is much much more.

Download the Toolbar and start enjoying all the features that it has to offer.

http://bit.ly/TBTSWP

Where To Invest $1,000 Dollars: Options, Futures Or Penny Stocks?

Posted on April 4, 2010 by Dana Salvo

I have $1,000 to invest. Where do I put it? Where can I make the most money in a short period of time?

Getting started in the business of day trading can sometimes be tough due to limited capital. However, most people can usually scrape up $1,000 to get started. The big question becomes where do I invest that $1,000 and how can I maximize my gains. You have several options. Let’s talk about where you could potentially invest your $1,000 and make it grow over a time frame of 12 to 18 months.

Consider the most common highly leveraged trading vehicles that are in the financial market place today. Read the rest of this entry »

Penny Stock Bounce Plays: Your best Friend or Worst Enemy? WAMUQ

Posted on March 10, 2010 by Dana Salvo

In this article TheStockWizards.net will cover one of the best money making strategies when day-trading penny stocks. This trading technique is used mostly by full-time penny stock professional traders that are able to sit in front of a screen all day long. When played correctly the bounce play can be one of the fastest, easiest ways to make quick money in the professional field of trading penny stocks.

Warning!! A bounce play played incorrectly can totally wipe out your account if you do not know what you are doing. This takes a lot of experience to attempt this kind of strategy. The timing of a bounce play is very critical in nature. There are many factors that need to line up to attempt a successful bounce play.

If your personality as a trader or investor is very aggressive, this strategy will come very natural to you. Think of a bounce play as a rubber band. From for a moment pretend that you have a rubber band in your hand and take the rubber band with both hands and stretch it as wide as you can. The farther you stretch the rubber band the greater the force will be when you let go of one side. There is great force and velocity behind that. This is what you’re looking for when playing a Penny Stock bounce play. Read the rest of this entry »

The Art of Trading Penny Stocks Psychological Support and Resistance

Posted on March 9, 2010 by Dana Salvo

If you’re new to trading Penny Stocks this article will help you greatly improve your chances of becoming a better penny stock trader. We are going to focus on what professional traders call psychological support and resistance. What does this mean?

When trading penny stocks there are certain support and resistance levels that are known to professional traders as psychological levels. This has nothing to do with normal support and resistance levels that chart technicians use on a daily basis when looking for obvious support and resistance.

The psychological levels can be revealed on your level II trading screen. A level II trading screen shows you supply and demand for each individual stock. We will not go into a full in-depth review of level II in this article; it is something that all penny stock traders should look into. It is a very helpful tool. Read the rest of this entry »

Stop, If you don’t read this it will cost you Thousands of Dollars when Trading Penny Stocks: Trendlines

Posted on March 5, 2010 by Dana Salvo

When trading stocks there is a saying that goes like this “A Picture is worth 1,000 words.” in this article we will identify positive and negative trends when trading penny stocks. Using technical analysis helps you get an idea what traders and investors are thinking about in any particular stock. All you have to do is pull up a monthly weekly or daily chart and you can get a quick idea if you have a positive or negative trend.

TheStockWizards.net uses some very basic technical analysis 101 to help you understand how simple it is to identify a trend. So if you’re new to trading to technical analysis this will give you a great education and a good start. Read the rest of this entry »