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Monarch Casino Hits The Jackpot In Q1
Monarch Casino & Resort (MCRI) are the number one stock in our intrinsic value screen, which probably reflects their future growth prospects. On the other hand, their prospective P/E is 16.55 while trailing P/E is 21.29, implying some current undervaluation. The stock closed at $19.86 today, May 18th.
MCRI had a record first quarter of 2005. Despite severe adverse weather conditions and a
one-time gaming development charge in the amount of approximately
$204,000, the Company achieved net income of $3.9 million, or $0.20 per
diluted share, for the first quarter ended March 31, 2005, a 39.7%
improvement from the record $2.8 million net income, or $0.15 per
diluted share, set during the same period a year earlier.
The first quarter 2005 earnings per diluted share is in line with consensus analysts' estimates of $0.20. Earnings per share for the 2004 first quarter has been adjusted to give consideration to a 2 for 1 common stock split effective March 31, 2005.
Record revenues across all the Company's revenue centers contributed to a new first quarter record net revenues of $31.6 million, which was 3.5% better than the previous record of $30.5 million set in 2004.
Their Atlantis Casino Resort is right next to the Reno-Sparks Convention Center, which ensures a steady stream of customers. Additionally, the population of Reno is growing quickly.
Management is strong; putting an emphasis on using free cash flow to pay down long-term debt, remains focused on cost control, and continues to aggressively pursue new as well as repeat business.
With the current revived popularity of poker, it is not hard to see them achieving their goals.
Technically, the chart is still in a longer-term uptrend, forming a consolidation pattern on declining volume. A break above 21 with an increase in volume may well signal higher prices to come, the shorter-term target being at least closure of the recent gap at around 23. In the longer term, the prospects for MCRI appear to be positive.
The first quarter 2005 earnings per diluted share is in line with consensus analysts' estimates of $0.20. Earnings per share for the 2004 first quarter has been adjusted to give consideration to a 2 for 1 common stock split effective March 31, 2005.
Record revenues across all the Company's revenue centers contributed to a new first quarter record net revenues of $31.6 million, which was 3.5% better than the previous record of $30.5 million set in 2004.
Their Atlantis Casino Resort is right next to the Reno-Sparks Convention Center, which ensures a steady stream of customers. Additionally, the population of Reno is growing quickly.
Management is strong; putting an emphasis on using free cash flow to pay down long-term debt, remains focused on cost control, and continues to aggressively pursue new as well as repeat business.
With the current revived popularity of poker, it is not hard to see them achieving their goals.
Technically, the chart is still in a longer-term uptrend, forming a consolidation pattern on declining volume. A break above 21 with an increase in volume may well signal higher prices to come, the shorter-term target being at least closure of the recent gap at around 23. In the longer term, the prospects for MCRI appear to be positive.