Author Topic: UWN - Nevada Gold  (Read 15943 times)

DTEJD1997

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Re: UWN - Nevada Gold
« Reply #20 on: July 31, 2013, 06:44:11 PM »
Hey all:

UWN reported earnings the other day of $.03/share.  They were even better than what I was expecting.  Management has done an EXCELLENT job of running the company these past few months.  In addition to the net earnings, they have paid down debt by just over $2MM.  This is a significant amount, as it is about 12.5% of outstanding debt.

Management also explained operations in a bit more detail.

They may have the undeveloped land sold, as it is under option.

They are also working on getting the debt refinanced by lowering the interest rate and extending the term.  Remember, outstanding debt is approximately 11%.  Management is working on getting it cut by HUNDREDS of basis points.  I'm thinking that might be from 11% to 8%.  If that can be accomplished, that will result in savings of at least $300k a year, which is substantial for a company this size.

Perhaps the most important thing of all is that the stock price has gone up by about 30% since my first post on it.

Any thoughts?


DTEJD1997

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Re: UWN - Nevada Gold
« Reply #21 on: January 08, 2014, 08:40:12 PM »
Hey all:

UWN released earnings the other day, and they were reasonably good.

Perhaps the most important thing is that they have refinanced their high yield debt.  The debt was just over 11%, and they refinanced it at about 6.5%.  This will yield significant savings going forward.

The refinance of the debt was one of the catalysts that I wrote about in my writeup on the soapbox. 

The stock has jumped from $1.10 to just over $1.30.  Hopefully UWN will be able to keep up the progress.  If so, the stock still has a lot of runway left.

Any thoughts?

gg

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Re: UWN - Nevada Gold
« Reply #22 on: March 18, 2014, 11:38:28 AM »
DTEJD - Any thoughts on the most recent numbers? Revenue has come down a bit, but numbers don't yet reflect the full benefit of the refinancing. The whole delaying of the conference call a day due to a number in the financials being off never inspires too much confidence...

DTEJD1997

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Re: UWN - Nevada Gold
« Reply #23 on: March 18, 2014, 10:22:06 PM »
Hey all:

It pains me to say that I've lost faith in this company.  I think my investment thesis is no longer valid.

It chafes me how they handled their latest earnings call.  Strictly "amateur hour".  If they can't get the numbers right in time, HOW ARE THEY GOING TO MAKE MONEY!!!!????  How are they going to take market share and grow shareholder equity (that is trading for a HUGE discount)?  Is this representative of how they operate the other aspects of their business?

Even more important than that...they lost money.  Revenue was down, earnings are down.  There is no more "juice" in the tank!  What will they do for an encore?  There is nothing more to be wrung out of the WA casinos.  The Dakota routes are EBIDTA negative...The debt is refinanced...What is next?  NOTHING.

To be fair to management, they are trying...but they have used all the arrows in their quiver.  This is a worse business than I thought. 

The skill of management is not sufficiently high enough to overcome the "negative" aspects of the industry.

Of course, maybe they get bought out, maybe WA allows slot machines?  Maybe one of their notes pays off in full?  Maybe, but I just don't see it.

I'm going to take my now MODEST gains and move on.

Please accept my apologies for writing this company up...I usually have better results than this.

Good luck everybody.

DTEJD1997

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Re: UWN - Nevada Gold
« Reply #24 on: March 18, 2014, 10:25:21 PM »
I almost forgot to mention!!!!!!!

MANAGEMENT/INSIDERS DID NOT BUY ANY STOCK THIS LAST QUARTER!

Why would they? 

They know better...

valuedontlie

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Re: UWN - Nevada Gold
« Reply #25 on: June 09, 2017, 08:35:10 AM »
Anyone still own/follow this name?

Stock has been working higher but fundamentals in WA deteriorating and NV casino has yet to earn what management originally guided to.

Balance sheet is in good shape and they have ~25% of market cap in cash on hand... should generate another quarter of decent cash flow too...

A couple of things worry me: WA minimum wage hike is going to hurt by $400k on top of the 30% decline in EBITDA so far this year, tax assets running out, buyback seems stupid to me as stock is illiquid and they are perfectly happy issuing shares at any price for deals, cash sitting on the B/S and no idea as to how they plan to use it...

Anyone have any thoughts here?

DTEJD1997

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Re: UWN - Nevada Gold
« Reply #26 on: June 09, 2017, 09:56:56 AM »
Anyone still own/follow this name?

Stock has been working higher but fundamentals in WA deteriorating and NV casino has yet to earn what management originally guided to.

Balance sheet is in good shape and they have ~25% of market cap in cash on hand... should generate another quarter of decent cash flow too...

A couple of things worry me: WA minimum wage hike is going to hurt by $400k on top of the 30% decline in EBITDA so far this year, tax assets running out, buyback seems stupid to me as stock is illiquid and they are perfectly happy issuing shares at any price for deals, cash sitting on the B/S and no idea as to how they plan to use it...

Anyone have any thoughts here?

I still look in on the company from time to time, but I no longer have a position, nor do I plan on initiating one...

I think your assessment is largely on target.  The company is doing kind of sort of OK....

BUT their Dakota acquisition has largely been a turkey...Nevada is kind of sort of OK...but no great shakes.  WA is having trouble, bad weather, higher minimum wage, etc.

One thing that I think has been unmentioned and that I see in my personal life is that poker is kind of on a downturn...One big problem with poker is that after a period of time (6 months, 1 year, 2 years) the local area is going to have winners & losers.  Obviously, most players are going to be losers.  The losers will play, win a little, lose a lot, and then they stop playing OR cut back by like 75%.  Poker has to have a continuous inflow of NEW MONEY, NEW PLAYERS to have a healthy ecosystem.

In the Detroit area, I see lots of "regulars" who play for a while, then they bust out and disappear.

I imagine the same thing is happening in WA.

UWN is doing OK, but nothing compelling.  Management is OK, but they aren't big enough to take on any really meaningful deals.  The company is too small, has marginal assets, so they aren't of interest to a bigger player...

End result is they are stuck in a bad spot...

valuedontlie

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Re: UWN - Nevada Gold
« Reply #27 on: June 09, 2017, 10:07:44 AM »
Agreed, I feel the best route for them might be to sell the company or go private... they generate a good amount of cash but this is not a growth story and never will be...

The card rooms in WA are a sub-par business at best... receipts have grown something like 1.5% over the last 17 years from ~$187m to $240m or so while tribal casinos eat their lunch (went from $272m in 2000 receipts to $2.3bn last year)... now throw the wage hike into the mix...

Foreign Tuffett

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Re: UWN - Nevada Gold
« Reply #28 on: September 18, 2018, 10:11:58 AM »
Sale announced today @ $2.50 per share.

https://globenewswire.com/news-release/2018/09/18/1572672/0/en/Nevada-Gold-Casinos-Announces-Sale-Merger-Agreement.html

My timing was fortuitous here, as I just bought shares last week. #betterluckythansmart

bizaro86

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Re: UWN - Nevada Gold
« Reply #29 on: September 18, 2018, 11:09:53 AM »
Congrats!  I was looking at it as a potential arbitrage play, but the "potential minor adjustments" to the purchase price scared me off given the spread is only 2%...