CPHC - Canterbury Park Holding Corporation Is A Hold For Now

2024-04-27 03:14:45 ET

Summary

• Canterbury Park Holding Corporation is currently overvalued from a liquidation and discounted cash flow standpoint.
• Legislative exclusions in Minnesota restrict CPHC's future cash flow growth, but lifting these restrictions could lead to a dramatic increase in the company's share price.
• It's not currently certain how much of an impact CPHC's property development ventures will have on the company's future revenue growth.

I am giving Canterbury Park Holding Corporation ( CPHC ) a HOLD rating because I think that the stock is currently overvalued from a liquidation as well as from a discounted cash flow standpoint. Currently CPHC is not allowed to have slot machines in their casino as they have been exclusively licensed to Minnesota's Native American Tribes. Legislation has also been introduced to allow sports betting in Minnesota however, as the bill is written it would exclude any casinos except for ones owned by the Native American Tribal communities. Both of these legislative exclusions severely restrict CPHC from future cash flow growth but, if any of these restrictions to how CPHC runs its casino were to be lifted the share price of this company would likely see a large increase as their future casino revenues would almost certainly rise dramatically. ...

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