Monarch Casinos: This Small-Cap Operator Has Validated Our Bull Case Since 2016

Summary

  • On Nov.22, 2016, we guided higher on Reno-based Monarch as a solid bet on an excellent management with a clear vision of steady growth.
  • We liked its approach to maximizing existing assets before moving on to a market expansion beyond its home state.
  • Our bull case was sustained. MCRI now trades at $81.30. We're raising guidance now to $95 by 2Q23.
  • Looking for option income ideas that focus on capital preservation? I offer this and much more at my exclusive investing ideas service, The House Edge. Learn More »
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Readers of this space know that in valuing gaming companies, we always look at the numbers in terms of how investors should view management's successes and failures. Because of my career background as a c-suite gaming executive, I have observed up close how

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This article was written by

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Howard Jay Klein has 30 years of experience as an executive and consultant in major casino operations. His background includes: Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace in Las Vegas. He is a value investor first, using management quality to inform his investment ideas. Howard is the leader of the investing group The House Edge where he shares actionable research for investing in the casino, online betting and entertainment industries. His intelligence network is extensive throughout the US gambling and entertainment sectors from customer facing employees, to mid-management to csuite senior managers and boards.

His model portfolio is reviewed monthly.

Features of include: actionable analysis on gaming companies, news and interpretation for the latest trends in gaming, a regular newsletter, buy-sell-hold or accumulate recommendations, chat. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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