Here, we learn a little bit more about the UWN acquisition of 7, no, scratch that, 6 mini-casinos in Washington.
I think that it certainly is attests to the shrewdness of management that they were able to back out of the purchase of one of the casinos. They only allocated a dollar for the purchase of the money losing mini-casino.
It is reassuring to know that management doesn't seem to only care about growing the top line of the company. Having the foresight and ability to structure a deal in this manner are impressive; having the guts to not allocate capital after having previously committed it, is truly business like and unemotional in the best way.
I do like that the company is buying 6 casinos, rather than 7, at 3-4x EBIDTA. This will not only keep fixed costs from rising so quickly, but, will also let the company focus their efforts. Synergies are vast, considering that Nevada Gold already has a good chunk of the mini-casino market in Washington. Additionally, the final numbers (as a multiple of EBIDTA) could be better than expected, since, the 7th casino was likely bogging down results.
UPDATE: Here, we learn that there will be a conference call on this Thursday, where the company will discuss financial results. I am looking forward to this and will post some notes and thoughts on the matter. :)
Disclosure: I am long UWN. This is not investment advice. Don't do anything that I think or write about without doing a ton of thinking and research on your own.