Thursday, July 29, 2010

Nevada Gold Earnings and Conference Call.

When reading the most recent press release and listening to the conference call for Nevada Gold, I was stunned by how well things are going.

It is looking like the company will be having $4-$4.5 million in EBITDA over the next year- the best part, is that they expect to be making money in the coming year, which, after today, is pretty damned obvious. They are not done doing acquisitions and will be very diligent responsible in their pursuit. There may well be a bigger acquisition, with the help of the company's predominant lender, who has voiced interest in helping the company out. They have also been looking at other funding options.

The acquisition prospects of SunCruz is all but dead.

When looking to buy more casinos in Washington, while wanting to "play in a bigger sandbox" the company wouldn't mind buying more mini-casinos at the right price, due their being "little cash cows". Presently, they want to let the dust settle operationally.

The company had a small loss for the quarter when excluding 1 time charge offs and such; the main one, was an impairment to goodwill, which doesn't really change my estimation of what the company is worth...

In the last 2 days of conference calls, I was VERY pleased with this one and less than thrilled with CTHR's (despite them doing what seems to be a good job). Overall, I am happy. Again, the results for UWN vastly exceeded my expectations and I look forward to seeing what the guys in Houston are going to be to pull with this growing company.

Disclosure: I am long UWN and have no position in any other securities mentioned. Always do a ton of your own research when doing or thinking about anything that I talk, do, or even think about!

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