UWN (Nevada Gold & Casinos ) will published their 2nd quarter for 2012 next week on the 15th and this could really well be the beginning of a quarterly net profit era.
Based upons results from Q1 2012 and last year Q2 results, the following items should reflects improvement
- interest expenses should have decreased based upon new loan agreement with Wells Fargo
- Total revenues should have increase because of the first complete quarter of Red Dragon
So, even if gross revenues from other properties were to stay flat compare to last year, overall revenues should have increased by a 5-10%, interest expenses should have decrease significantly and adjusted EBITDA should be in the 800K$ to 950K$ range and net profit in the 0,01 to 0,02 cent per share .
Then if you calculate the actual net value per share, even by removing completely the good will value, UWN is still valued at 14M$ with on hand cash (including restricted cash) over 7,5M$ for a 1,03$ value per share and a 2,26$ value per share if we include the good will value.
I still believe that we could be in for results that would beat my expectations and therefore providing a good share value increase. Do not forget also that the slot machine run deal that will close in Q3 2012 will add great profit and if Washington was to allow slot machines in their state in a near future, UWN could be set to sky rocket rapidly as they would be well positionned to be licensed for a 1250 machine and a 85M$ in revenues increase (based upon their last presentation). Now imagine how the net profit would look like ! UWN share value increase that would arise from a decision like this one could be similar to the one experimented by MPEL due to revenues increase in Macau.
As usual never invest more than you can afford to lose.
Based upons results from Q1 2012 and last year Q2 results, the following items should reflects improvement
- interest expenses should have decreased based upon new loan agreement with Wells Fargo
- Total revenues should have increase because of the first complete quarter of Red Dragon
So, even if gross revenues from other properties were to stay flat compare to last year, overall revenues should have increased by a 5-10%, interest expenses should have decrease significantly and adjusted EBITDA should be in the 800K$ to 950K$ range and net profit in the 0,01 to 0,02 cent per share .
Then if you calculate the actual net value per share, even by removing completely the good will value, UWN is still valued at 14M$ with on hand cash (including restricted cash) over 7,5M$ for a 1,03$ value per share and a 2,26$ value per share if we include the good will value.
I still believe that we could be in for results that would beat my expectations and therefore providing a good share value increase. Do not forget also that the slot machine run deal that will close in Q3 2012 will add great profit and if Washington was to allow slot machines in their state in a near future, UWN could be set to sky rocket rapidly as they would be well positionned to be licensed for a 1250 machine and a 85M$ in revenues increase (based upon their last presentation). Now imagine how the net profit would look like ! UWN share value increase that would arise from a decision like this one could be similar to the one experimented by MPEL due to revenues increase in Macau.
As usual never invest more than you can afford to lose.
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