Monarch Casino Searching For Acquisitions, Says CEO

Must read

[ad_1]

Posted on: July 20, 2023, 02:18h. 

Last updated on: July 20, 2023, 02:24h.

Monarch Casino & Resort (NASDAQ: MCRI) is considering opportunities to add to its two-property portfolio via acquisition.

Monarch stock
Monarch’s Atlantis Reno. The company is looking for acquisition opportunities. (Image: The Nevada Independent)

Co-Chairman and CEO John Farahi made comments to that effect in the company’s second-quarter earnings press release, which was published on Wednesday after the close of US markets. Reno-based Monarch currently owns the Atlantis in its home city and its eponymous venue in the fast-growing Black Hawk, Colo. market.

We continue to evaluate potential acquisition opportunities where we can employ our developmental and operational expertise in a financially prudent manner,” said Farahi in the statement.

Farahi didn’t elaborate on specific regions in which Monarch is considering entering, nor did he say whether or not the company has held talks with potential sellers.

Monarch Could Be Buyer … or Seller

Monarch Casino closed the second quarter with $35.1 million in cash on hand. That’s a decent tally for a company with a market capitalization of $1.41 billion, but one that also implies the operator would likely need to issue debt or equity to affect an acquisition.

As for the prospects of Monarch striking a deal over the near term, anything is possible. However, management is believed to be highly selective, which is to investors’ benefit, and the current high-interest rate environment doesn’t lend itself to debt-fueled mergers and acquisition activity.

“Management’s stringent requirements makes executing an acquisition tricky in the present M&A environment, though not impossible, while MCRI’s balance sheet flexibility could afford unique buying opportunities in a hypothetical downturn,” wrote Stifel analyst Jeffrey Stantial in a note to clients.

Stantial added that Monarch could be a takeover target owing to “quality assets and unclear long-term succession plans.” He rates the stock a “buy” with a $91 price target, implying upside of 30.5% from current levels.

Where Monarch Could Look for Deals

Assuming Monarch doesn’t want to add a property in the markets in which it already operates, the field of prospective regions thins and grows smaller when considering the company probably isn’t a contender for a Las Vegas Strip asset.

Management is likely to continue to “target an underinvested asset in a quality market (stable supply; reasonable tax rate; local economic growth drivers). These opportunities are more limited and barring macroeconomic headwinds evoking incremental opportunities,” observed Stantial.

In terms of favorable tax trades and growing local economies, Northern Nevada and Colorado’s three gaming markets of Black Hawk, Central City, and Cripple Creek fit the bill. Those areas also have the benefit of being in states with rising populations, a pivotal trait for regional casino operators.

Conversely, other large gaming states, such as Illinois and Louisiana, are shedding population. However, Louisiana has the benefit of neighboring Texas, which doesn’t permit casino gaming.

[ad_2]

Source link

More articles

- Advertisement -spot_img

Latest article

kemampuan spesial putaran ajaib slot mahjong ways 1 langsung cuan maksimalteknik keramat slot mahjong ways 2 auto turun scatter berlimpahslot jackpot unlimited paling di cari memberslot sugar rush 1000 mudah jackpot besartrik menangkan jackpot pakai strategi inirahasia mengalahkan mesin slot onlinertp dan volatilitas slot pragmatic gates of olympus hari inicara kerja fitur free spin pada slot gates of olympusakun vip mesin slot kakek zeus mudah dapat x500 tiap spincara menang slot sensasional hanya modal receh khusus slot olympusslot unlimited scatter tanpa batas game slot olympus 1000 terbarulink slot gacor terbaru saat inislot demo x500 mesin slot gate of gatotkaca hokiakun pro server jepang jaminan sensa slot olympus x500slot pasti menang dijamin perkalian besar pasti muncul gacor bangetslot anti kalah prediksi admin indra kenzrahasia bocoran dari ahli slot starlight princessstrategi meraih kemenangan besar sweet bonanza x100mengenal simbol penting pada slot gates of olympusfitur multiplikator dari slot gates of olympus yang harus kamu taucara jitu melipat gandakan kemenangan bermain slot onlineslot mahjong ways 2 scatter hitam membararahasia mengalahkan kunci admin mesin slot olympuspanduan lengkap cara mudah jp slot mahjong waysslot maxwin pasti jackpotpola hoki slot super mahjong ways 2 jaminan maxwin sekali spintrik ledakan bom besar x100 sweet bonanzacara mudah munculkan fitur slot scatter hitam kemenangan maksimalcara jitu mengalahkan bandar judi online dengan main slot pragmatic playsistem kemenangan besar 100 juta main slot mahjong ways banjir wild terbanyakcara menjadi sultan dalam sekejap bermain slot mahjong ways2rahasia gacor link maxwin terbaru pgsoftmain slot online dengan pola hoki dijamin maxwinslot mahjong lagi bagi bagi jackpot tanpa batas hanya butuh modal recehkunci kemenangan slot mahjong waysrahasia jam gacor gampang jackpot slot mahjong pandakumpulan slot gacor terbaru 2024sistem spin ajaib slot mahjong ways 1 gampang kasi kemenangan instantcheat gacor slot onlineslot scatter hitam menggila langsung menang 100 jutaslot rave party fever menang maxwin dengan trik bocoran ampuhpola jitu main ikan gampang menang slot koi gate habanerodaftar slot paling jitu memberikan kemenangan kepada member barubocoran pola sakti slot gates of olympuscara mendapatkan perkalian tidak wajar slot mahjong waysbocoran terbaru ahli bermain slot onlinealasan mengapa slot pragmatic gates of olympus begitu populerbocoran pola slot gates of olympus yang pasti slot hokibermain slot pragmatic gates of olympus dengan modal minimtrik main slot jackpot modal recehbocoran akurat sekali spin slot mahjong ways superbanjir kemenangan konsisten slot mahjong tanpa ampun kasi jackpotcara terbaik memaksimalkan kemenangan bermain slot mahjong ways 2admin putri bagi bagi akun sakti khusus slot pragmatic playpenemuan jam hoki slot gacorcara bermain slot gacor dengan langkah ajaib dari admin stevenulasan mendalam starlight princess x1000 menurut para ahliperbandingan slot starlight princess dengan slot lainnya di tahun 2024keistimewaan akun vip di slot online server thailandstrategi terbaik untuk menang di slot starlight princess dari pragmatic playfakta bocoran pola scatter dari negeri para princessgrebek situs pola gacor zeus untuk turunkan scatterketimpa scatter x1000 membuat bandar mahjong ways gulung tikarkumpulan naga hitam memecahkan pola gacor di mahjong wayslari bersama kakek zeus mengejar maxwin x1000mandi jackpot bareng di situs gacor anti rungkad bonanzapeluang kemudahan mencuri pola kakek merah zeusspenjual rujak memberi pola buah untuk mendapatkan jackpot di bonanzaresiko jadi admin slot dapat memecahkan pola gacor mahjong ways2seorang pria muda di temukan sukses berkat pola gacor princessnya