Author Topic: UWN - Nevada Gold  (Read 16158 times)

ragnarisapirate

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UWN - Nevada Gold
« on: October 19, 2010, 06:40:28 AM »
Nevada Gold. Here is a company that I am pretty bullish on, which seems to have a bunch of catalysts.

Having not been to any of their facilities (which, really, kinda erks me), I was curious if anyone had been to any of their operations... They have a bunch of mini-casinos in Washington State- I hear that several board members live out there and wondered what they thought of them.
 
Here are their Washington ops.
http://www.silverdollarcasinos.com/main.html
http://www.crazymoosecasinos.com/
http://www.crazymoosecasino2.com/
http://www.coyotebobsrhcasino.com/

They operate the Colorado Grand, too (which, is aptly named after it's location):
http://www.coloradogrande.com/
« Last Edit: October 21, 2010, 07:28:51 PM by Parsad »


ragnarisapirate

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Re: UWN - Nevada Gold
« Reply #1 on: October 19, 2010, 07:27:50 AM »
As a side note, if anyone has any thoughts on the security or industry, feel free to send them my way.

QLEAP

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Re: UWN - Nevada Gold
« Reply #2 on: October 19, 2010, 10:25:41 AM »
I own a tiny bit of Century Casinos (CNTY) and their Colorado operations are not doing that great. Calgary, Canada seems to be a sweet spot - the returns historically have been really good. Still, it's going to be a while before regional casino stocks move up and the CNTY management doesn't seem to be interested in buying back shares at such low prices..

ragnarisapirate

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Re: UWN - Nevada Gold
« Reply #3 on: October 20, 2010, 01:02:11 PM »
I own a tiny bit of Century Casinos (CNTY) and their Colorado operations are not doing that great. Calgary, Canada seems to be a sweet spot - the returns historically have been really good. Still, it's going to be a while before regional casino stocks move up and the CNTY management doesn't seem to be interested in buying back shares at such low prices..

It's unfortunate that CNTY is not buying back shares... It does seem that the company is REALLY attractive on a p/b level, but, is unfortunately like the rest of the industry in bad shape in generating profits without a ton of leverage. I really like all the cash they have.

I know that the Colorado gaming market seems to be pretty saturated; heck, our companies are competitors of one another in Cripple Creek! I assume that CNTY's operations were effected there when the Wildwood opened up, too. But, I suppose that like in many industries, the ultimate solution for low earnings, is low earnings. If the industry does turn around due to consumers gambling more, rather than companies closing up shop/going out of business, the levered up guys will do disproportionaly well (an obvious conclusion).

I would be surprised if the industry didn't see an uptick in earnings due to spending and QE2; when, though, I don't know. Furthermore, I think that any one expanding like UWN is trying to, will do quite well. They seem to be the Biglari of the casino world; buying things and fixing them.

Does CNTY have some sort of expansion plan on the table? Additionally, do you think that the industry is going to see an uptick in earnings and such in the near future? Why wouldn't these 2 companies merge? On the face of things, seems like they would do quite well together; admittedly though, I havn't read much on CNTY.

QLEAP

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Re: UWN - Nevada Gold
« Reply #4 on: October 21, 2010, 04:35:05 AM »
CNTY has made some smart moves the past three years - they sold their South African operations just before the crash for a good sum and acquired a auctioned casino in Calgary during the downturn very cheap ! The casino is recently renovated and this will add nicely to their income over the next few months.

The one issue is that they own 33% of Casinos Poland and they are looking to acquire the entire stake - that partly explains their cash hoard.  As far as I know, the Poland casino returns have been average and the Govt recently raised taxes - they must find something attractive that I don't.

But it is too cheap IMO and I am willing to wait another year or so to see how this one plays out.

ragnarisapirate

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Re: UWN - Nevada Gold
« Reply #5 on: October 25, 2010, 08:54:59 AM »
CNTY has made some smart moves the past three years - they sold their South African operations just before the crash for a good sum and acquired a auctioned casino in Calgary during the downturn very cheap ! The casino is recently renovated and this will add nicely to their income over the next few months.

The one issue is that they own 33% of Casinos Poland and they are looking to acquire the entire stake - that partly explains their cash hoard.  As far as I know, the Poland casino returns have been average and the Govt recently raised taxes - they must find something attractive that I don't.

But it is too cheap IMO and I am willing to wait another year or so to see how this one plays out.

Have you talked to management about the acquisition of the remaining polish shares? they recently took a hefty write down, and, it looks like they are presently giving the share a 10x earning multiple, though, we don't know exactly how they are reporting the earnings from the stake (eg, if a dividend was paid, how much were left in casinos poland bank from earnings?).

Can the rest of the operations be had for ~$5 million, as a result? furthermore, what kind of EBITDA and revenue numbers could we be looking at?

QLEAP

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Re: UWN - Nevada Gold
« Reply #6 on: October 26, 2010, 12:12:43 AM »
No, I have not talked to the management about the Polish stake. They had hired GS for M&A but that fell out when Polish Govt raised taxes and they are back to the drawing board again. Its hard to find out more about this, should be a good conf call this quarter.

I think they can make ~60m revenues and 9-10m EBITDA this year if the Calgary casino operations are in full swing.

ragnarisapirate

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Re: UWN - Nevada Gold
« Reply #7 on: December 07, 2010, 10:17:50 AM »
Does anyone have access to this full report?

http://finance.yahoo.com/news/Institutional-Investor-Ranked-twst-3620065651.html?x=0&.v=1

It's from the wall st transcript online.

Earnings are getting ready to come out too. I expect that they will earn money, provided that you take out 1 time expenses (which may still be coming as a result of the newly acquired casinos.

gfp

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Re: UWN - Nevada Gold
« Reply #8 on: April 07, 2011, 07:27:51 PM »
Thanks for posting this one -  it appears someone else has discovered this stock recently.  I like the management a lot at this place.

twacowfca

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Re: UWN - Nevada Gold
« Reply #9 on: April 07, 2011, 07:46:25 PM »
These companies are in the business of fleecing their customers.  Why should we think they will do a 180 turn in attitude in their orientation to their shareholders?