A Look At Nevada Gold & Casinos (NYSEAMEX:UWN)

Throughout the ‘recession’ we’ve all been a part of over the past few years, how many companies have you looked at, big or small, that have actually stood the test of time? I say this not to shed a negative light on certain companies, I’m just actually looking at this from a pure nuts and bolts viewpoint.

We watched many companies take a small dip, only to rebound to levels higher than what they were before, but yet if you look at their books, they were a part of the same misery many companies faced throughout these trying times we have seen in the U.S. economy.

So why the ‘rebound’ for certain companies that showed us all quarterly losses, while some companies, like Nevada Gold & Casinos (NYSEAMEX:UWN) showed everyone positive quarterly growth throughout this entire fiasco?

When you look further at Nevada Gold & Casinos (UWN), you’ll notice that not only did they continue to show positive quarterly growth, but they also have positive cash flow, levered free cash flow, and yet, they still trade under their book value.

The answer in my opinion is the same thing we noticed time and time again, perception. Most of the time this has nothing to do with anything other than what masses ‘believe’ to be true, so it then becomes true.

Nevada Gold & Casinos, Inc. engages in the ownership, management, and development of casinos and gaming facilities in the United States. The Company owns and operates 11 gaming facilities in Colorado and Washington and has recently signed a stock purchase agreement to acquire gaming assets in South Dakota.

Over the last 5 years, the management team of Nevada Gold has taken numerous steps to restructure the Company and prepare it for future growth.

Significant reduction in operating expenses - Operating expenses cut from $7.5M in 2006 to $4.3M in 2011.

Repaired balance sheet - Eliminated $47M in debt.

Refinanced significant portion of current debt - Refinanced $11.0M of the Company’s existing debt.

Disposed of non‐core assets  and acquired properties at attractive valuations - Sold‐off mining assets, Tribal gaming assets, and real estate holdings and acquired

10 new casinos in the last two and a half years that have generated over $50M in

combined combined revenue revenue for for the the LTM LTM ending ending August August 3131, 2011 2011.

To further all of the efforts the company has been making in recent times, UWN’s Corporate Management Team is second to none!

Nevada Gold’s CEO, Robert Sturges, has had previous success managing gaming and entertainment companies.

Robert Sturges ‐ Chief Executive Officer

– Former President of the Gaming Division of Carnival Corporation (NYSE:CCL) with a market cap. of $24.9 billion, where he was responsible for the development and management of several new casino properties globally, including:

• Casino Rouge Riverboat (Baton Rouge, Louisiana), a 30,000 sq. ft. dockside riverboat casino with 1,000 slots and 30 table games.

Mr. Sturges was allso responsible for overseeing the development off a 25,000 sq. ft. terminal building for the Riverboat with a restaurant and entertainment facilities.

• Casino Rama Resort & Casino (Toronto, Canada), a 300 room resort that at the time generated over $1.0M in revenue per day, and has a 90,000 sq. ft. casino with 2,500 slots, 110 table games, 6 restaurants, and a 5,000 seat entertainment center.

• Crystal Palace Resort (Nassau, Bahamas), an 800 room resort with a 30,000 sq. ft. casino.

• Responsible for the management of other casinos and resorts, including the casinos located on 15 ships operating in Europe and the Caribbean, the Condado Beach Trio (San Juan, Puerto Rico), the Pelican Resort and Casino (Philipsburg, St. Maarten), the San Sandd

Castles Resort (Puerto Plata, Dominican Republic), and the Golden Rainbow Resort (Puerto la Cruz, Venezuela).

– Served as Director of the New Jersey Division of Gaming Enforcement from 1982‐1983.

– Has served as a board member to the following companies:

• AmeriCredit Corp. (NYSE:ACF), a Fortune 1,000 automobile finance company acquired in July 2010 by General Motors in an all‐cash transaction valued at approximately $3.5 billion.

• Benihana, Inc. (NASDAQ:BNHN) withh a market cap. off $142.9M, an operator off Asian stylle restaurants in thhe U.S.

– Graduate of Dartmouth College and a cum laude graduate of Rutgers School of Law.

– Limited partner of the Miami Heat NBA franchise.

Nobody can say for certain what’s in store for UWN, but I believe that when you couple all of their strengths together, you have a winning formula. It may not be the next Google, or Apple, but it’s certainly under appreciated at these current levels.

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