Mike Arnold
Long only, small-cap, tech, growth at reasonable price

No Gambling Necessary When Investing In Lakes Entertainment

Lakes Entertainment (LACO) ("Lakes" or "the company") is a developer, financier and manager of gaming and casino properties throughout the United States, and is currently presenting investors with a compelling low-risk, high-reward opportunity as a result of recently collecting a large outstanding note receivable. In that light, Lakes' $107 million market capitalization is now made up of about $72.5 million in net cash, or ~67% of the entire market capitalization.

For about $35 million, investors get Lakes' remaining assets for a compelling discount.

The Investment Thesis

The investment thesis is that investors are not correctly assessing Lakes' collection of assets on a sum-of-the-parts ("SOTP") basis, the first of which, net cash, is the largest and the easiest to value.

Net...

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