Canadian Listed Casino & Gaming Companies

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BVal77
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Canadian Listed Casino & Gaming Companies

Post by BVal77 »

Hello Everyone, I haven't posted on here in a while and I was wondering if I could get some opinions on a sector and a specific stock in that sector. The sector I am talking about is casino & gaming, which surprisingly is very small and less than 10 stocks exists here on the Canadian markets (TSX, Venture, CSE). Recently two gaming companies were taken over and one was profitable, the other one was not. So there seems to be a demand for stocks in this sector and I created a listed below of all them with some minor information.

Symbol – Common Shares – Last Price – Last Quarter Profit/(Loss) – EPS(last Quarter)

GC.T – 60.8M - $34.09 - $26.7 Mil CAD Profit - $0.43c

GH.T – 27.7M - $9.94 - $4.2 Mil CAD Profit - $0.16c

ITX.T – 19.5M - $11.73 – ($210 Mil CAD Loss) – No Earnings

NYX.V – 108M - $1.13 – ($21 Mil CAD Loss) – Currently Being Taken Over

IGG.T – 20M - $2.49 - $266K USD Profit – Just Finished Being Taken Over

LOTO.C – 63.5M - $0.375 – ($6.9 Mil CAD Loss) – No Earnings

JP.V – 337M - $0.05 – ($804K CAD Loss) – No Earnings

TNA.V – 124.7M - $0.13 - $1.05 Mil USD Profit – $0.01c eps when converted to CAD

PYD.V – 35M – $0.30 - ($1.38 Mil USD Loss) – No Earnings

CNS.V – 81.9M – $0.02 - ($187K CAD Loss) – No Earnings

- Numbers Are Based On Most Recent Quarters Announced
- Filter From Stockwatch Was Used
- Financial Numbers Taken From Sedar

My question is about TNA.V which is probably the least traded and most unknown of all the stocks. This company earned over $10 million USD in profits over the last 5 years and the stock has gone only from $0.01 to $0.13 and I don't understand why. The dilution seems high, but insiders own 77.51% of all the shares.

Do you think this is a good buy at current prices given their financials and earnings, as well as the high demand for these casino and gaming stocks? Large caps that are already at 52 week highs seem rich and the other small caps couldn't turn a profit to save their lives. So really it comes down to TNA.

Some information below from their most recent financial results that I got from Sedar. I know we aren't allowed to post links on here so I made it easy for everyone.


Financials

ASSETS - USD
Cash: $4,499,410
Restricted Cash: $2,283,216
Other Assets: $176,317
Accounts Receivable: $116,259
Inventory: $176,643
Deposits: $10,551
Game License: $63,267
Trademarks: $1,185,000
Goodwill: $6,435,481
Property & Equipment: $10,549,240
TOTAL ASSETS: $25,495,384

LIABILITIES – USD
Notes Payable(Mortgages): $6,673,081
Trade Payables: $4,616,249
Notes Payable: $389,357
Deferred Tax: $348,000
TOTAL LIABILITIES: $12,026,687

Asset/Debt Ratio: 2.12:1

Note: Pending Sale of Tukwila Casino For $2 million USD

Quarterly Sales Results

Year - Sales - Net Income – EPS (Earnings Per Share)
2014 - $30,555,757 - $2,720,669 - $0.02c EPS - Not converted into CAD yet
2015 - $33,338,543 - $3,933,883 - $0.03c EPS - Not converted into CAD yet
2016 - $33,326,624 - $1,909,408 - $0.015c EPS - Not converted into CAD yet
2017(Q1) - $8,229,974 - $337,347 - $0.003c EPS – Not converted into CAD yet
2017(Q2) - $8,513,288 - $1,047,878 - $0.008c EPS – Not converted into CAD yet
steves
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Re: Canadian Listed Casino & Gaming Companies

Post by steves »

Drug smuggling, money laundering.... what's not to like?
Live Rich, Die Broke (but not too soon).
BVal77
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Re: Canadian Listed Casino & Gaming Companies

Post by BVal77 »

https://simplywall.st/news/2017/10/29/e ... ap-stocks/

Evergreen Gaming Corporation (TSXV:TNA)

Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is run by CEO Dawn Mangano. With the company’s market capitalisation at CAD CA$17.95M, we can put it in the small-cap group

TNA’s shares are currently trading at -22% beneath its true level of $0.17, at a price tag of $0.14, based on my discounted cash flow model. This mismatch signals an opportunity to buy TNA shares at a discount. In addition to this, TNA’s PE ratio stands at 7.2x compared to its hotels, restaurants and leisure peer level of 19.4x, indicating that relative to its comparable company group, we can invest in TNA at a lower price. TNA is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 52% has been diminishing for the past few years demonstrating TNA’s ability to pay down its debt.
BVal77
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Re: Canadian Listed Casino & Gaming Companies

Post by BVal77 »

TNA.V released their earnings a couple weeks early. $630,000 US profit and just over $2 million US profit over 9 months. For a small cap it sure has some great numbers. Balance sheet is good with asset/debt ratio better than 2:1 now and insiders still own 78% of the stock, total of 124 million shares. Trading at a major discount compared to it's peers.
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deaddog
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Re: Canadian Listed Casino & Gaming Companies

Post by deaddog »

Well it is a Casino Company so it is a gamble.

Firstly it is a penny stock. It trades with a 2 cent spread; you can easily make 13% a day if you can buy at the bid and sell at the ask. But you probably can't.

It owns 4 casinos in Washington State; well sort of; There are no slot machines, That's how you make money with a casino, let the machines do the work; no labor cost; no supervision; no employee theft or cheating to worry about; no attitude problems. Oops maybe only 3 casinos?? Looks like they might have closed one in Feb 2017.

If you have to own a Casino then I'd take Gamehost; Owns 4 Casinos in Alberta and pays a 6% dividend.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
BVal77
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Re: Canadian Listed Casino & Gaming Companies

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Hello all, long time no see. Looks like TNA.V has doubled since I last posted and given their back to back earnings, stock is still quite undervalued. Those that understand earnings per share valuations, check below and let me know.

TNA Earns $1.5 Million USD In Q1 2018

TNA.V Q1 2018 Results (Ending March 31st 2018)
All Numbers Are In US Dollars. Information from SEDAR

Price: $0.22
Common Shares: 124,716,865
Insider/Institutional Holdings: 95,967,855 or 77.51%

Financials

ASSETS (USD)
Property & Equipment: $8,916,932
Goodwill: $6,435,481
Trademarks: $1,185,000
Game License: $55,467
Deposits: $36,678
Inventories: $170,905
Receivable: $19,963
Other Assets: $93,404
Restricted Cash: $3,326,656
Cash: $8,431,973
Total Assets: $28,672,459

LIABILITIES (USD)
Deferred Tax: $279,000
Notes Payable: $5,504,185
Trade Payable: $6,013,996
Current Note Payable: $275,647
Total Liabilities: $12,072,828

Q1 2018 Performance
Sales: $10,174,943
Net Income: $1,482,979

Earnings per share in Q1: $1,482,979 * 1.30(CAD) / 124,716,865 = $0.0155c EPS
Prior Quarters - Revenue Breakdown per quarter

Date – Sales – Net Income
2014 - $30,555,757 - $2,720,669 USD
2015 - $33,338,543 - $3,933,883 USD
2016 - $33,187,853 - $1,909,408 USD
2017 - $35,609,459 - $3,032,901 USD
2018 - $10,174,943 - $1,482,979 USD

Management Discussion Highlights

Net revenues for the quarter ended March 31, 2018 were $10,174,943, an increase of $1,944,969 compared to the same period in the prior year. Table games revenue increased by approximately $1,381,000 as a result of gaming dollars dropped being 21.1% higher than the same period last year, and the hold percentage was up slightly by .1%. Poker revenue increased by approximately $456,000 as a result of making the Palace Lakewood all poker tables effective February 1, 2018. Operating expenses were $8,245,859 in the quarter ended March 31, 2018 compared to $7,620,589 in the prior year quarter. Labor and benefits expenses decreased slightly by approximately $11,000. This decrease was primarily due to the closure of the Palace Tukwila that took place on February 4, 2017. The decrease was offset by the increase in the minimum wage that went from $11.00 to $11.50 effective January 1, 2018. Marketing and administrative increased approximately $356,000 which was primarily due to marketing expenses increasing approximately $420,000 offset by a decrease in management fees of $75,000. The increase in marketing expenses consisted of $207,000 at the Palace Lakewood and $213,000 at the other locations. The Palace Lakewood increase was the result of promoting the location as an all poker facility. The management expenses decreased as the result of terminating the management agreement with Michels Management Services effective December 31, 2017. Gaming taxes and license expenses increased approximately $215,000 as a result of the increased gaming revenue.

The Company’s cash at March 31, 2018 was $11,758,629, compared to $10,043,965 at December 31, 2017. These amounts include “Restricted Cash” balances of $3,326,656 and $2,975,946 respectively. “Restricted Cash” balances are jackpot funds held for prizes being offered at the casinos. Cash provided by operating activities for the quarter ended March 31, 2018 was $1,838,039 compared to $1,250,501 for the quarter ended March 31, 2017.

The Company’s assets at March 31, 2018 totaled $28,672,459 compared to total liabilities of $12,072,828. At December 31, 2017, total assets were $27,062,630 compared to total liabilities of $11,945,978.

Net revenue increased to $10,174,943 in the quarter ending March 31, 2017 compared to $9,413,335 in the quarter ending December 31, 2017. Gaming dollars dropped increased 3.4% in the current quarter and the hold percentage increased 0.7% compared to the quarter ending December 31, 2017. Operating expenses in the quarter ending March 31, 2018 were $8,245,859 compared to $8,394,959 in the prior quarter. Labor and benefits expense decreased approximately $112,000 in the quarter ending March 31, 2018 compared to the prior quarter. This decrease was primarily due to labor and benefits expense at Palace Lakewood decreasing approximately $154,000 as a result of converting the location to all poker on February 1, 2018.
BVal77
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Re: Canadian Listed Casino & Gaming Companies

Post by BVal77 »

Hello Y'all! been a while since I posted. Hope everyone is doing ok after covid.

Wanted to give an update on TNA.V as this casino company was on fire until Covid began, then took a hit. But somehow they got to keep their $6 million government loan and got bought out for $0.70. Even from my last post 4 years ago it still returned a 318% gain or 81% a year. Can't complain about that. Posted the news below.

Evergreen to be acquired by Maverick for $68M (U.S.)
2022-09-08 15:18 ET - News Release

Mr. Steve Michels reports

EVERGREEN GAMING CORPORATION ENTERS INTO DEFINITIVE ARRANGEMENT AGREEMENT TO BE ACQUIRED BY MAVERICK GAMING LLC

Evergreen Gaming Corp. has entered into an arrangement agreement with Maverick Gaming LLC and its subsidiary Maverick Acquisition Canada ULC, which contemplates a plan of arrangement under the Business Corporations Act (British Columbia). Pursuant to the arrangement agreement and the accompanying initial purchase agreement, defined hereafter, Maverick will acquire all of the outstanding common shares of Evergreen.

Under the transactions contemplated in the arrangement agreement and the initial purchase agreement, Maverick would acquire 100 per cent of the outstanding common shares of Evergreen for cash consideration of 55 U.S. cents per Evergreen share, subject to adjustment as referred to hereafter. The transaction was unanimously approved at a meeting of the Evergreen board of directors, and the Evergreen board of directors unanimously recommends that Evergreen shareholders vote in favour of the transaction. The transaction provides total consideration, subject to potential adjustment, of approximately $68-million (U.S.).
Excessive cut and paste removed and replaced by article link -- Administrator
Last edited by Administrator on 26 Sep 2022 11:46, edited 1 time in total.
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