Am I alone in thinking that it’s odd that Fort Wayne doesn’t have a casino? Seems like growth and attracting outside money is a priority for the city, but you have to travel two hours in order to table gamble in the state (ignoring Michigan). I am fairly new to the area, but has there been no attempts to open a casino that would benefit the city’s growth?
I wanted to share with the group some due diligence and speculation I have done around Gamehost (TSX: GH). I want to start by saying that this is not a situation where you urgently need to buy this right now and ride up a wave, there will be no rocket ships on this post and I strongly encourage you to perform your own due diligence and see if you want to buy this stock. This is an extremely low volume stock and if you rush to buy it, the price will go up far past the supply of sellers. I do not intend to pump this but only to get critique. Gamehost is an owner and operator of 3 casinos located in Alberta, 2 hotels in Grande Prairie and a retail store rented to a liquor store near one of the casinos. The 3 casinos are: Boomtown Casino in Fort McMurray, The Great Northern Casino in Grande Prairie and the Deerfoot Inn and Casino in Calgary which they own 91% of currently. As you probably guessed by these locations, the casinos are cyclical and make a lot of money when oil prices are up and go through downturns when prices are low and projects stop. All 3 casinos are not destination type casinos like you would find in Las Vegas where people come from all around to visit, but are very reliant on their local communities. The Boomtown Casino is the only casino in Fort McMurray and the Great Northern Casino is the only proper casino in Grande Prairie with a much smaller limited one in town. The Deerfoot Inn and Casino is 1 of 7 (yes, 7!) casinos in the Calgary area. It primarily focuses on the Southeastern portion of the city and the surrounding suburbs and still serves a market of about 200,000 people in just that area. All 3 casinos are also very focused on live events and have become gathering points for live events and nights out for their communities. Although all 3 casinos have been affected by oil downturns all 3 communities they serve have much higher median income than the country as a whole. The casinos have remained profitable throughout the entirety of the oil downturn and despite a dividend cut in 2016 they have still paid a consistently strong dividend until the COVID-19 pandemic (more on this later). Grande Prairie’s economy is more focused on natural gas extraction which has been consistently profitable. Calgary as a major city does have a diversified economy as well which leaves just Fort McMurray to be the lone straggler in dealing with oil prices. No new casinos have been built in Alberta since 2006, which has left people still coming to the doors of the casinos regardless of the economy. All three cities have seen consistent population growth greater than 10% from 2016 according to Statistics Canada’s estimates which is far greater than the national average. People are still coming to these cities and are still making a fairly high wage compared to the average Canadian. The second thing that has likely come to your mind is why casinos when they have been shut down during the pandemic? As the vaccine is currently being implemented the orders will not last forever. When the casinos have been opened even with reduced services, they have remained profitable and the management has responded by using the pandemic as an opportunity. They have been consistently buying back thousands of shares every day and cancelling them. If you look at their SEDAR profile you can see that they have not missed a single day to cancel at least 2,000 shares per day. Since the company had 24.5 million shares issued, they have bought back about 1-2% of the float so far which has made the stock even harder to buy on the open markets due to the lack of volume. They have also been approved to expand the operations of the Deerfoot Inn and Casino which should be completed by the summer. The insiders have followed by accumulating many shares in their personal accounts over this period of weakness. In the third quarter of 2020 the company posted EPS of 12 cents per share down from 16 cents a year ago. Revenue was down to $4.9 million from $6.7 million. This is with severe restrictions and limitations on the amount of people that can come in the casino and what they can do. All live events were cancelled, table games were restricted and yet the company was still making enough money to buy back significant shares and improve their existing assets. The management has essentially channelled the dividend into making the number of shares decrease in a time of strong price weakness. There is interest in this space since the largest casino operator in the country Great Canadian Gaming was acquired recently for almost double what they were trading for in the spring. Private equity firms have been looking into casinos as a post-recovery play. Unlike companies in airlines or movie theatres, these do not have significant issues staying profitable during intense downturns, they only become less profitable with a sudden surge afterwards. I am speculatively buying this stock on the idea that as COVID-19 restrictions are gradually lifted there will be an awkward window where people will be back almost to normal within Canada and will have a strong urge to go out and do activities that they have been restricted from doing for months. At the same time they will be unable to travel internationally due to different countries having different vaccination schedules, planes still operating at reduced capacity with many airlines being in trouble and governments being reluctant to remove limitations abroad. This will significantly bring business to casinos and other live event focused businesses within Canada. I anticipate that in the 12 months past restrictions being lifted that the business will see a significant bump in EPS. They will reinstate the dividend and the share price will grow significantly. My personal price target is $12 per share but I could see it being anywhere from $10-$15 per share. This is without oil prices budging at all. In the long-term the price will be cyclical based on oil prices unless they start diversifying geographically. It is extremely difficult to get a licence to open a casino, which leaves the company with the only option of acquiring other casinos. This is a possibility down the road but something I will look more into once I see a significant bump in EPS due to increased demand. I do believe that in the current market with the price having barely recovered from the March lows, that the stock is a very good contrarian play in the 12-24 month range. Holding after that could potentially be risky depending on your own views on how the oil industry will play out and if the management has what it takes to diversify. Online gambling is an even longer term threat but since these casinos are focused on live events and have become a staple of the communities that they are in, this is not likely to be a threat for some significant time. Please let me know what you think, feel free to criticize. If you guys like my analysis I could do more on other small or mid cap companies. There have been a few I have kicked myself over missing.
Only Fort McDowell’s We-Ko-Pa Casino Resort combines big-time action and endless enjoyment in a magnificent destination that’s always worth the visit. Whether you favor the sheer thrill of spinning reels or the extraordinary action of blackjack and more, a “wow” kind of experience awaits. Discover Arizona’s greatest gaming floor, showcasing 166,000 square-feet of pure excitement ... Fort Knox Jackpot In allen 12 Casinos. Mit nur 75 Cent Spieleinsatz haben Sie im Casino die Chance auf den Jackpot.* Erleben Sie Fort Knox - die neue Spielautomaten-Sensation - in allen 12 Casinos von Casinos Austria. *) Der Fort Knox Jackpot ist mit allen 12 Casinos in Österreich vernetzt. Der aktuelle Jackpot Stand kann an den teilnehmenden ... Seminole Hard Rock Hotel And Casino. 1 Seminole Way, Fort Lauderdale, USA Ausgezeichnet 651 Bewertungen 305 US$ niedrigster Preis/Nacht. The Guitar Hotel At Seminole Hard Rock Hotel & Casino . 5711 Seminole Way Suite 200, Fort Lauderdale, USA Gut 71 Bewertungen 331 US$ niedrigster Preis/Nacht. Ocean Sky Hotel And Resort. 4060 Galt Ocean Drive, Fort Lauderdale, USA Gut 1169 Bewertungen 165 US ... Das Ruby Fortune Casino bietet genau das und vieles mehr! Mit uns können Sie Ihr Spiel auf die nächste Ebene bringen. Hier ist nur das Beste gut genug. So war es schon, als wir 2003 angefangen haben, und das können Sie auch heute erwarten. Willkommen bei der Premium Online-Casinounterhaltung. Willkommen im Ruby Fortune Casino. Casino has plenty of machines to delight everyone. High percentage of winning. Sports Bar food was tasty and filling. Room was spacious, modern and bed very comfortable. Staff friendly and helpful. Will certainly return for more fun times. Fort Knox Jackpot Gewinne. Seit 16. Mai 2019 gibt es in den zwölf Casinos von Casinos Austria insgesamt 90 Fort Knox Automaten. Fort Knox bietet spielbegeisterten Casino-Besuchern ein einzigartiges Slotgame-Erlebnis. Bisher wurde der Fort Knox Jackpot bereits in folgenden Casinos gewonnen: Casino Arizona, Talking stick, and Lone Butte are protecting their customers by making it a non smoking casino. The virus spreads through smokers and so you would think Ft. McDowell would go along with the others and care enough about their customers to also make it non smoking. Fort McDowell Adventures showcases three premier, resort-style special event venues suitable for hosting memorable corporate events, festive family reunions and chic country weddings. Plus, it serves as a hub for numerous outdoor activities. You can take a horseback trail ride through the historic landscape and cross the Verde River. If you need a little more horsepower, drive a UTV Tomcar ... Fort Casino was built as a timber reinforced blockhouse on Casino Hill. This was a small fort with earthen parapets, a crushed stone glacis and armed with light artillery pieces. This location was on a commanding hilltop along the Franklin Turnpike that lead into town. A more elaborate battery was envisioned by General Tower to surround the blockhouse but was never built. An inspection report ... Poker Information Exchange Service GmbH Impressum Datenschutz Alle Bilder und Texte sind Eigentum von Pokerfirma und dürfen ohne Genehmigung nicht auf Drittseiten verwendet werden