The last one year has been great for the investors of MCRI. The stock has appreciated by 84%. A major part of the up move (~70%) has come in the last 3-4 months because the company beat the analyst estimates for earnings by a huge margin. It reported an EPS of $0.26 for the quarter, against the consensus estimate of $0.16. Even the estimates regarding the revenue were beaten. The revenue was $47.64 million compared with the consensus estimate of $46.80 million. The EPS estimate for the full year is around $0.92. The analysts have a consensus buy rating for the stock and the price target is $16.88. The performance of the company has been good over the last few years with increase in revenues and net income. In 2012, the revenue grew by 21% and the net income increased by 57% (compared to 2011). Despite the appreciation in the stock, it is trading around 24 times ttm earnings and 16 times forward earnings. The price to sales and the price to book ratios are also reasonable at 1.46 and 1.84 respectively. Debt increased substantially in the last year mainly for funding the acquisition of Black Hawk Casino in Colorado. Despite this, the leverage is better when compared with many casino giants. Further, many of the bigger companies are incurring losses since many quarters. Caesars (CZR), Penn National Gaming (PENN), MGM Resorts (MGM) and Scientific Games (SGMS) are also facing a patent infringement lawsuit filed by MGT Capital Investments (MGT) which is huge with claims expected to be around $4.5 billion. The potential of the new property in Colorado is huge. There is a lot of scope for expansion and converting the casino into a full fledged resort. The initial impact of the new property on earnings has been positive. The prospects for the stock are good if fundamentals keep pace.