4/18/2010

Noteworthy Week ending 04/17/10

Turn around candidate Nevada Gold & Casinos (UWN)

Okay this idea is a stretch but may interest many investors betting on a turnaround.

Industry = Resort and Casinos
Price = .86
Book Value Per share = 2.70

EV per share = 1.12
GP per share = .53

Market Cap = 10.78 million
Enterprise Value = 14.258 million


Pros
New Acquisitions, 04/15/10 Announces Agreement to Purchase Seven Mini-Casinos in Washington

Turn around candidate committed by an industry experienced new management team.

Management believes they are in a buyers' market and there are a number of additional interesting prospects that they are actively reviewing.

Mean reversion candidate, It can’t get worse with 5 year return -42.90%, 3 year return -28.30%, 1 year return = 3.80%, 3 month return -2.70%

Rapidly improving results as demonstrated by the recent quarterly results.Net revenues increased to $5.2 million compared to $1.4 million in the third quarter ended January 31, 2009.

UWN recently signed management and technical services contracts for the development and management of a hotel and casino adjacent to the Las Vegas Motor Speedway in North Las Vegas.

270 acres of Black Hawk, Colorado land for sale

Knowledgeable acquisition aggressive management in a buyer’s market.

Value institutions holding shares such as KENNEDY CAPITAL MANAGEMENT, WYNNEFIELD PARTNERS SMALL CAP VALUE LP, RENAISANCE TECHNOLOGIES

Cons=
Corporate expenses out of control but company defends current management structure due to expansion plans. This should hopefully improve due to current and future acquisitions.

Not profitable
Some insider buys for the week ending 04/16/10

AMPH, GLF,SONC,DVAX,CHMP,ZBB

Please Click to review additional information

2 comments:

Anonymous said...

Hi
How do we know that UWN management have commitment to reach profitability?
I tried to search the net but couldnt find and info.
they didn't show operational profit in the last few years or any attempt to cut costs.
The good Long term trend is the Reduction of the long term Debt year to year that is a very good sign.
I think this is a classical case with great potential good price increase market share (That is very important for Casino) but lack of knowledge about the management team.

ShadowStock said...

Hi, i listend to the most recent conference call, coupled with the very recent acquisitions, and strong managment team.

Thanks for the response
John