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Nevada Gold & Casinos Inc. Message Board

  • kidonthebeach kidonthebeach Jun 3, 2013 12:42 PM Flag


    Hello everyone
    Its been a quiet board for awhile now so I thought I would post. Its early, but I am looking at UWN having potential in the future resulting in an increase in PPS. Here’s why
    1. Move to new headquarters in Vegas is now complete. This will now save the company 750,000 annually. This comes to over 4 and a half cents a share (if there are 16mil shares) in decreased spending on rent etc – this will help UWN pay down debt and increases the likelihood of profit.
    2. Economy has been doing well, watch for UWN to continue its winning streak in Washington card rooms this quarter. Last quarter during winter months (November, December, January) there was 1.6M adjusted EBITA and 1 cent a share profit.
    3. South Dakota—last year they had 173 K in EBITA from the slot operation. This was as they were installing their rewards card programs onto machines and also prior to them having the Midnight Star (Kevin Costner’s casino) contract. With the midnight star and the rewards program now installed—there is potential for even a better quarter numbers.
    4. The company will have now a full year with the SD slot operation and Washington gold together on its SEC filings—this will give everyone their annual revenue, ebita, adjusted ebita etc. Analysts will take note of the much improved enterprise value/adjusted ebita.
    5. There is potential future cost savings on horizon with rate reduction of their interest. Right now interest is 9.75 on loan with wells fargo. As Nevada gold has improved their balance sheet, and has had a growing rapport with Wells Fargo in the past year plus—they are likely to refinance and get a lower interest rate on their loan sometime in the future. A 1 % interest rate reduction of their 20m debt (approx.) will result in 200K in savings. This is 1.25 cents a share a year savings for shareholders. And a 1% interest rate reduction is possible as their balance sheet has improved.

    Thoughts? Good luck everyone

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    • ghickey Jun 24, 2013 9:48 PM Flag

      I just happened to look at a chart of UWN today while scanning my gold stocks charts. (I don't know how it got in the gold stocks)
      I was struck by what appears to be accumulation going on since about late Jan. Heavier volume on the rallys and low volume on the pullbacks like on this pullback.
      I wonder what we don't know???

    • I don't think UWN has 20MM in debt. Yahoo! is reporting it at about $15MM, with 6MM in offsetting cash.
      The average interest rate on the debt is about 11%. Paying it down is one of the company's top priorities. I think they could pay down some of it and then get it refinanced. This will certainly lead to savings.

      UWN also has some assets that they can sell or utilize. This might result in a few million dollars, put this towards debt paydown, and you are making real progress.

      If UWN can do the following:

      A). Improve cash flow slightly
      B). Use 70% of cash flow to pay down debt
      C). Sell the vacant land or collect on one of the notes
      D). Refinance debt @ 8.5% interest

      I think UWN could be making $.15/share in a year or so.

      If THAT HAPPENS, I don't think UWN will be trading for $1/share.

      We'll see.

      Sentiment: Strong Buy

    • Last year they released the year end results (apr. 30) on July 27th, so we may have another 6 weeks before any news here.
      Early july last year was the press release about the loan from wells fargo to pay the per machine fee to South Dakota. I'm guessing they will do the same thing this year?


    • thanks for the insights kidonthebeach. Which beach by the way? I use CNTY and UWN as my gambling portion of my stock holdings. I would rather invest 1000 in uwn shares, than put 1000 through their slots in deadwood (though I have put a few dollars in the slots in South Dakota).

      Sentiment: Buy

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