PSRU stock is the talk among penny stocks after running 697% on September 30th. Shares are still cheap, however, after the company announced a share option agreement to acquire majority control of the American Basketball Association (ABA). We believe this sets up the company to be acquired either by the NBA or by one or more of its multi-millionaire players, just like The Rock acquired the XFL. In this article, we wake a look at the bull case for PSRU stock and why there looks to be a lot more gas in the tank to run.
First up, here’s a little background info for those not familiar with PSRU stock. Valiant Eagle, Inc. (OTC PINK: PSRU) is a publicly-traded corporation focused on the energizing of celebrity entertainment, social media, and TV communications. VE aims to achieve an unparalleled advancement towards media through music, sports, and, with respect to the millennial generation, through technology.
American Basketball Association
The original ABA was established in 1967 and merged with the NBA in 1976. The New Jersey Nets, San Antonio Spurs, Indiana Pacers, and Denver Nuggets were teams merged into the NBA from the ABA. Some of the ABA notable players were: Julius Erving (Dr. J), George Gervin (The Iceman), Rick Barry, Moses Malone, and many others that went on to great careers in the NBA.
In 1999, the ABA was re-launched by Joe Newman and Richard P. Tinkham, a co-founder of the original ABA and Indiana Pacers. The ABA established a relationship with the NBA and has been operating in harmony for the past 20 years.
Today, the ABA is the largest professional sports league in the US with over 175 teams playing in most major US cities including, but not limited to, NYC, Detroit, Chicago, Atlanta, Miami, Charlotte, Houston, Dallas, Phoenix, LA, San Diego, San Francisco, and Kansas City. It is also the most diversified professional sports league ever with over 75% of its teams owned by African-Americans, Hispanics, Asians, and women.
PSRU Stock and The ABA
PSRU stock has a share option agreement to acquire majority control of the American Basketball Association (ABA). The agreement includes ownership in all ABA subsidiaries, including, but not limited to, WABA, ABA Australia, ABA Mexico, ABA Sports Realty Group, SeatBiz, ABA TV Network, ABA Store, and ABA STAR.
The reason for the deal is that a problem that the ABA has faced in the past has been getting adequate exposure on television. Valiant Eagle is the solution to this problem and will focus on entertainment and television as a major part of the newly developed ABA TV Network that will bring the ABA to millions of people worldwide.
Valiant Eagle’s CEO, Xavier Mitchell previously owned the ABA’s Phoenix Fury and gained considerable experience that will help guide him on the journey of operating the ABA.
The Rock and the XFL
All former athletes dream of either owning a professional sports team or in The Rock’s case, an entire league.
With my trail blazing partner @DanyGarciaCo & Red Bird Capital, we have acquired the XFL.
With gratitude & passion I’ve built a career with my own two hands and will apply these callouses to our @xfl2020 brand.
Excited to create something special for the fans! #XFL #fullcircle pic.twitter.com/LprJ6HjglD
— Dwayne Johnson (@TheRock) August 3, 2020
The XFL was relaunched by WWE CEO Vince McMahon in 2020 following an unsuccessful one-season existence back in 2001 but was forced to file for bankruptcy after the coronavirus pandemic forced the cancellation of its season.
The purchase price for the XFL was $15 million and they were bankrupt. What would the purchase price of the ABA be, which is not in bankruptcy? Our bet is a lot more than $15 million, especially if PSRU stock CEO Xavier Mitchell gets a TV contract.
Currently trading with a market cap of just $6 million, PSRU stock is an exciting story among penny stocks. The best part is that the company has already told us that more updates and PRs are coming. These are the types of catalysts that drive penny stocks. With the ABA now in its pocket, PSRU stock can also become an NBA play if CEO Xavier Mitchell starts making deals. Stay tuned and buckle up. It’s going to be an interesting ride.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in OTCMKTS:PSRU, or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.