MCRI - Monarch Casino: Brilliant Execution Has Rewarded Longtime Holders But What's Next?
2024-04-30 12:26:49 ET
Summary
- Monarch Casino & Resort, Inc. has successfully expanded its presence in the casino market, with properties in Reno and Black Hawk, targeting markets with population growth and lifestyles.
- The company has a strong balance sheet and a focus on providing superior customer service, rewarding long-time shareholders with genuine increases in yield.
- Monarch's expansion strategy may include adding room towers to its existing properties or seeking acquisitions with similar profiles, such as Full House Resorts. The stock has the potential to break through its current range and move above $70.
Above: Metro Denver, a major feeder market.
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- We've tracked this winner since 2016 as an example of how disciplined management and a strong customer service ethos reward shareholders. Its strategy is simple: Thrive in markets with population growth, plus lifestyles. Its Reno and Black Hawk properties are blueprints for a third market presence that may be closer than it would appear.
- The company began life as a motel operation in Reno during the seventies. It was owned by the Farahi family armed with a singular strategy: Establish a good operating structure, superior customer service and move ahead without heavy borrowings. A pristine balance sheet since has validated that operating philosophy.
- The next logical step brought them into the casino business. They saw the potential in that market's population growth-now over 500,000 in the metro Reno-Sparks areas.