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Best of the Best: Today's Top Investment Ideas
Gamble on Monarch Casino (MCRI)? Print E-mail Digg It!
Tuesday, 26 August 2008

 "Monarch Casino & Resort (NASDAQ: MCRI) is the latest featured recommendation from value investor Charles Mizrahi. In his Hidden Values Alert, he looks at the Reno, Nevada operator.

"Monarch Casino & Resort owns and operates the tropically themed Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada. The resort is located approximately three miles south of downtown, in the generally more affluent and rapidly growing area of Reno, Nevada.

"The Atlantis features approximately 51,000 square feet of casino space, a hotel and a motor lodge with 969 guest rooms, nine food outlets, an 8,000-square-foot family entertainment center, and approximately 25,000 square feet of banquet, convention, and meeting room space.

"In June 2007, the company announced groundbreaking on an expansion project, with completion expected in the second quarter of 2008. New space will be added to the first-floor casino level, the second and third floors, and the basement level, totaling approximately 116,000 square feet.

"It also plans to add a pedestrian skywalk that will connect the Reno-Sparks Convention Center directly to the Atlantis. Construction of the skywalk is expected to be completed in the fourth quarter of 2008.

"The company has no long-term debt and return on equity is 15%. Net profit margins have decreased over the past year but are still strong at 11.4%. Overall, MCRI is a good company, and a price of $12.75 or less per share represents a very good value.

"If MCRI can grow earnings at 11 percent per annum and maintain a P/E of 15, the stock will handsomely reward investors in the next five years."




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