Andrew Racz
Director of Research
300 East 54 Street, Suite 26C
New York, NY 10022
Phone: (212) 319-6949
Fax: (212) 753-1944

Monarch Casino & Resort, Inc.

Posted on Feb 1st 2012


Price   $11
52 week price range   $12.34 - $8.26
Shares Outstanding   $16,100,000
Market Cap   $170,000,000
Book Value per Share   $8.03
Long Term Debt   $16.0M

Historical Figures $

Period Ending    12/31/2010    12/31/2009    12/31/2008
Total Revenue   142,030   133,732   141,369
Cost of Revenue   66,420   62,856   65,631
Gross Profit   75,810   70,875   75,738
Net Income Applicable to
Common Shareholders
  $8,236   $4,841   $9,541

The Birth of a New Era in Entertainment

The Monarch Casino and Resort “post January 2012” is the creation of a new era in online gambling and in fact in social media. Social networking, is likely to revolutionize online gaming – and in fact the world’s gaming industry.

The years 2011, 2010 have been characterized by the tremendous growth of what’s called personal communication companies, or as they are called Social Networking. The social networking giants already compete with:

Apple Computer

and are changing our way of living. Communication through Social Networking may match in significant to Albert Einstein’s theory of relativity. Speaker Newt Gingrich relies on Social Networking in raising campaign money. Who needs Joe Kennedy?

Price   $9.09
Shares Outstanding   700M
Market Cap   $7.0B
Est.Rev. 2012   $10.0B
Est.Rev.2016   20.0B
Twitter   Private
Facebook   Private

These companies have multi billion dollars in market capital, tremendous growth rate and current and eventual profitability. They have already made a mark in the world we live in today.

Little attention has been paid that companies like Zynga and Facebook basically not only connect people at various parts of the world but provide individual services to a tremendous client base.

The Surprising Potential Winners of Online Gaming … Online gaming has been taking slow but steady steps to asserting its market possibilities. A Justice Department decision opened the door for online poker and lotteries online recently, and a number of bills to regulate poke are in a drawer somewhere on Capitol Hill.

Everyone seems to be angling for a piece of what could be a massive market. Facebook has explored real-money gambling in the U.K. and recently gave a presentation to the lottery industry on how they could use Facebook to connect with players. Zynga (Nasdaq: ZNGA) introduced a poker game before moving to Farmville and may also be interested in the revenue a real-money game could provide.

Table maker Shuffle Master (Nasdaq: SHFL) recently launched an interactive division to offer the company’s proprietary games online with a free version available for U.S. players.

Written in a financial paper it may sound out of place, but conceptually it is true that dating services are contributing to a social function and by interconnecting people they provide a service more popular by the day.

In January 2012 the US Congress had passed the long awaited Gaming Legislation. It sets the potential rules and tax structures for individual states. In any case, Congress passed the bill that would regulate gaming on a federal level. This decision is a milestone in online gambling or in fact gambling and is preceded by the statewide revision of the federal law. It seems that the law would apply for each state separately and most of the permits will be localized. However, larger companies with interconnections like MGM, BWIN.Party, Boyd Gaming, will take the lion’s share of the business because of the interconnecting lines they have to various states and the financial power that they command. In any case, they are the best known names in poker like the World Cities of Poker and they are able very quickly to build the critical mass of players from a massive data base of previous visitors.

Pressure is mounting on Congress to legalize and regulate online gaming in the very near future. But the pressure isn’t coming from gaming companies or poker players. If Congress does act soon, it will be pressure from states that are working to regulate and tax online gaming themselves that forces it to act.

State vs. Feds: Fight now states like Nevada, New Jersey, Iowa, and others are getting ready to pass legislation to legalize and regulate online poker and lotteries. With 51 (including Washington, DC) potential sets of rules and tax structures, the pressure is on Congress to pass a bill that would regulate gaming n a federal level.

A Washington money grab: If the Feds end up regulating online gaming in some way nationwide, there’s no question that the advantage goes to large gaming companies with the brand recognition and infrastructure to expand quickly into the new market. The partnership between MGM (NYSE: MGM), Bwin.Party, and Boyd Gaming (NYSE: BYD) will take a lion’s share of the play. The two gaming sites would be able to offer the best-known names in poker like the World Series of Poker, the Bellagio, and Caesar’s Palace. They would also have the ability to quickly build a critical mass of players form a massive database of previous visitors.

Las Vegas giants Wynn Resorts (Nasdaq: WYNN) and Las Vegas Sands (NYSE: LVS) would be players as well but the impact won’t be as big as companies with more casino offerings.

Monarch Casino is a well run, well financed small company which is circled around a single casino, Atlantis Casino Resort, with various related facilities.

Business Summary: Monarch Casino & Resort, Inc. through its subsidiary Golden Road Motor Inn, Inc. owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada. Its Atlantis Casino Resort Spa features approximately 61,000 square feet of casino space, a hotel with 824 guest rooms, 10 food outlets, an enclosed year-round pool with waterfall, an outdoor pool, a health space, 2 retail outlets offering clothing and resort gift shop merchandise, a full service salon for me and women, an 8,000 square foot family entertainment center, and approximately 52,000 square feet of banquet, convention, and meeting room space. The company also operates approximately 1,450 slot and video poker machines, approximately 38 table games, including blackjack, craps, roulette, and others, a race and sports book, and Keno and poker room. Monarch Casino & Resort, Inc. was founded in 1972 and is based in Reno, Nevada.

The company is well capitalized and statistical figures are a solid base for expansion.

The leverage factor in Monarch and this report is not dedicated to the analysis of Atlantis Saloon is the total picture when it is put together with some artistic futuristic ideas.

The company has 16 million shares outstanding, at the current price of 11 the market cap is about $170 million.

The book value is $8. The stock has a range of $12.34 at the high of the last 52 weeks and $8.28 at the lowest level. Half of the company stock is owned by insiders who are the original stockholders.

MCRI Key Executives:

Mr. John Farahi, 64

  • Co-Chairman, Chief Exec. Officer
  • Member of 1993 Directors Stock Option Plan Committee
  • Member of Operations Committee
  • Member of Strategic Planning Committee
  • Co-Chairman of Golden Road Motor Inn Inc.
  • Chief Exec. Office of Golden Road Motor Inn Inc. and
  • Chief Operating Officer of Golden Road Motor Inn, Inc.

 Mr. Bob Farahi, 61

  •  Co-Chairman, President, Secretary
  • Member of Strategic Planning Committee
  • Member of 1993 Directors Stock Option Plan Committee
  • Co-Chairman of Golden Road and
  • President of Golden Road

Below is an analysis of Monarch Casino and Resort, Inc. after January 2012. It is our vision and analysis.

  1. A market cap of $170 million is accounted at the moment by the Atlantis Hotel and its related operation. The company’s revenue base is solid revenue bar around $150 million level with a steady net income of over $8 million. Also in the past boom of Las Vegas and Reno gambling it hit $25 million. 
  2. The company has about $20 million cash and solid borrowing capability for expansion.
  3. In the last few years, there were several steps for corporate expansion.

Now Monarch is in Reno, Nevada is likely to be one the biggest volume of online traders.

Its chief competitor in size is Boyd Gaming whose statistical description and operational description is listed below.

Boyd Gaming


Price   $9.00M
Shares Outstanding   90M
Market Cap   $810M
Own   15 Casinos

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2009, the company owned and operated 15 casino entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana, Indiana, and New Jersey. It owned approximately 812,500 square feet of casino space, containing approximately 21,400 slot machines, 425 table games, and 7,550 hotel rooms. The company also owns and operates a pari-mutual jai-alai facility located in Dania Beach, Florida, as well as engages in travel agency business. In addition, Boyd Gaming Corporation holds a 50% interest in a limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. The company was founded in 1988 and is headquartered in Las Vegas, Nevada.

Monarch set up a team to work with a number of larger American or overseas gambling companies to set up rapidly growing online gaming business. There are many British companies including Windmill 888, Ledbrooke; Windmill who has already gone to Nevada to buy three companies and they are trying to expand by finding partners in the United States. England has the wherewithal, capabilities and the history and America has the population.

The market is not only the population which one would expect in Nevada for online gaming, but we have to take into account the Social Netowrking companies who could multiply 2, 3, 4-fold the potential players.

If therefore we envisage that the online gaming business in a year’s time, for instance, could be anywhere between $25 to $50 million and if we assume that the company doesn’t have to issue new shares, the net earnings power of the company will change dramatically.

And this is where the story unfolds. 

  1. We have a stable casino company – Monarch Casino
  2. We have a stable management and capital structure and cash reserve.
  3. We are domiciled in Nevada; one of the best areas for online gaming.
  4. We are capable of creating a business in online gaming and Social Networking whose income could equal or double the current net income of the company.

The net result is likely to be a very positive effect on the price of the stock and the capitalization. Subsequently, the company could have access to an additional $50 to $100 million and become an international entertainment conglomerate.

Incidentally, that is where we can start with a comparison to an English casino such as Windmill. Windmill is international, Windmill is diversified and has a market cap of $2.5 billion. Monarch today has a market cap of $175 million and is situated at the absolute heart of the future of the online gaming and gambling business.

This is why the company is interesting.

Monarch Casino and Resort
    2012   Dec. 2013 Projection
Atlantis Revenue   140M   150M
Online Gaming   15   35
Joint Ventures   5   15
    160   200
Market Value   $200-225M   $300M
Equity Borrowing Capability       $100M



Information contained herein is based on data obtained from recognized statistical services, issuers reports or communications or other sources believed to be reliable. However, such information has not been verified by us and we do not make any representation to its accuracy or completeness. Any statement non-factual in nature constitutes only current opinions which are subject to change. BERAL INC. or their officers, directors, analysts or employees may have positions in the securities or commodities referred to herein, and may as principal or agent buy and sell such securities or commodities. An employee, analyst, officer or a director of BERAL INC. may serve as a director for companies mentioned in this report. Neither the information nor any comment expressed shall constitute an offer to sell or a solicitation of an offer to buy any securities or commodities mentioned herein. There may be instances when fundamental, technical and competitive opinions may not be in concert. This firm may from time to time perform investment banking or other services for or which investment banking or other businesses from any company mentioned in this report.



Bunker Hunt Article
Posted October 27, 2014

Lamb Realty.
Posted October 15, 2014

Chiquita Brands International
Posted August 20, 2014

Emerson Radio
Posted August 24, 2014

Evercore Partners Inc.
Posted August 5, 2014

Moelis & Co.
Posted July 22, 2014

Torchlight Energy Resources, Inc.
Posted May 21, 2014

Andrew Racz
Posted May 19, 2014

Royal Nickel Corporation
Posted May 02, 2014

Recorded Interview Robert Schermer, CEO
Posted March 15, 2014

Cowen Group, Inc.
Posted March 5, 2014

Pacific Booker Minerals Inc.
Posted February 4, 2014

Sandstorm Gold Ltd
Posted January 24, 2014

Global X Gold Explorer ETF
Posted January 16, 2014

Bring Back Mr. Giuliani
Posted December 24, 2013

Gold Reserve Inc.
Posted October 15, 2013

Premier Diagnostics Health Services Inc.
Posted September 25, 2013

Almaden Minerals
Posted September 3, 2013

Electric Cars In New York City
Posted August 27, 2013

The World Without Gold
Posted July 2, 2013

Remembering Mr. Churchill
Posted June 10, 2013

Financial Transactions in the Digital Age
Posted May 15, 2013

Senator Chester Crandell ( R ) Arizona
Posted May 7, 2013

Explor Resources Exs V
Posted April 14, 2013

The Gathering Storm
Posted April 9, 2013

Vietnam - West of Hong Kong
Posted March 11, 2013

Vietnam – In Peace!
Posted February 26, 2013

Wisdomtree Investments Inc
Posted January 28, 2013

Explor Resources Inc.
Posted November 28, 2012

Oremex Silver Inc.
Posted September 18, 2012

Alphamin Resources Corp.
Posted July 26, 2012

Harvest Natural Resources
Posted July 20, 2012

The Man Who Was Created by Gold
Posted July 06, 2012

Recorded Interview With Zach Erdem, President
Posted June 20, 2012

Nortec Minerals Corp.
Posted May 01, 2012

The Fundamentals of Chesapeake Gold Corporation
Posted April 16, 2012

Jourdan Resources Inc. (JOR.V)
Posted March 20, 2012

Posted February 27, 2012

Gold Index Bonds - To Avoid the Money Traps
Posted February 2, 2012

Monarch Casino & Resort, Inc.
Posted February 01, 2012

QMC Quantum Minerals
Posted january 19, 2012

African Metals Corp.
Posted December 21, 2011

The Crisis That Almost Wasn’t
Posted December 7, 2011

Posted November 18, 2011

The Crisis That Almost Wasn't
Posted November 15, 2011

Ocean Power Technologies, Inc
Posted October 19, 2011

The Mongolian Economic Miracle
Posted October 12, 2011

H. Hunt
The Son of Bunker Hunt
Posted August 24,2011

Sandstorm Gold
Posted August 15, 2011

"Silver At $200
Posted July 29, 2011

"First Majestic Silver Corp
 Posted July 26, 2011

"Interview with Brian Kirwin,
American Bonanza Gold Corp"

Posted July 21, 2011

"Interview with Ian Foreman
Yale Resources Ltd."

Posted June 16,2011

"Interview with Brandon Mckee
Callinan Mines
By Andrew Racz "

Posted June 1, 2011

"Andrew Thompson Interview Soltoro Ltd."
Posted May 15, 2011

"Great Panther Silver Limited"
Posted March 29, 2011

"The 21st Century's Marshall Plan"
Posted March 17, 2011

"Interview With
Houston Hunt"

Posted February 23, 2011

"Esperanza Resources Corp."
Posted February 23, 2011 

"Douglas Lake Minerals"
Posted January 11, 2011 

"Do not bet against Casablanca"
Posted December 10, 2010 

Posted December 8, 2010 

"Full Circle"
Posted November 19, 2010 

Posted November 8, 2010 

SilverCrest Mines, Inc.
Posted October 26, 2010

Cache Exploration, Inc.
Posted October 22, 2010 

Silvore Fox Minerals Corp.
Posted September 29, 2010 

Almaden Minerals, Ltd.
Posted August 16, 2010 

"The Path Of A Hungarian Immigrant"
Posted August 12, 2010 

"Interview With
Mark Hazout -
Silver Dragon Resources

Posted June 24, 2010

"Who Owns Whom At The Final Tally"
Posted June 15, 2010 

"The World Needs
Bunker Hunt.

Posted May 24, 2010 

"Arafura Resources "
Posted April 15, 2010 

"MF Holdings LTD"
Posted April 7, 2010 

"Quest Uranium Corporation"
Posted April 5, 2010 

"Lynas Corporation, LTD"
Posted March 19, 2010 

"Rare Element Resources LTD"
Posted February 9, 2010 

"Mexco Energy Corporation"
Posted January 4, 2010 

"Claude Resources"
Posted December 16, 2009

"The Silver Spirit"
Posted November 25, 2009 

"... from Casablanca to Monte Carlo."
Posted November 20, 2009 

"Sutter Gold Mining, Inc."
Posted November 16, 2009 

"Whose Friends Are They Anyway?"
Posted November 4, 2009

"U.S. Energy Corporation"
Posted October 28, 2009 

"Harris & Harris"
Posted October 13, 2009

"They Made A Difference"
Posted September 30, 2009 

"Bridge Bancorp, Inc"
Posted September 22, 2009 

"Entree Gold - September 2009"
Posted September 3, 2009 

"Who Lost Mongolia"
Posted August 16, 2009 

"Mongolian Prime Minister Sanj Bayar -
A politician of the 21st century"

Posted July 16, 2009 

"Romios Gold"
Posted July 7, 2009 

"The Grand Alliance"
Posted July 6, 2009 

"Sandstorm Resources, Inc."
Posted June 22, 2009 

"Ireland, Inc."
Posted June 16, 2009 

"The Brave New World! - Gold at $1000"
Posted June 5, 2009 

"Claude Resources, Inc."
Posted May 28, 2009 

"Bullion Management Group"
Posted May 11, 2009

"Golden Hope Mines, Inc. - Retraction"
Posted May 4, 2009 

"Silvercrest Mines, Inc."
Posted April 1, 2009 

"Silver Dragon Resources"
Posted February 27, 2009

"In Gold We Trust"
Posted February 26, 2009

"Entree Gold: An Unusual Asset Accumulation"
Posted February 20, 2009 

"The Ultimate Colorful Fate of Edmond Safra, Bernie Madoff, and Governor Bill Richardson"
Posted January 12, 2009

"Silvermex Resources, LTD"
Posted December 13, 2008 

"Prime Minister of Mongolia"
Posted December 11, 2008 

"US Gold Corporation"
Posted December 1, 2008 

"Rubicon Minerals"
Posted November 5, 2008 

"Gold Coins & The Money Game"
Posted October 29, 2008 

"Gold and the Chinese Millennium"
Posted October 20, 2008

"JNR Resources, Inc."
Posted September 30, 2008

"Three Immigrants In Front Of The Court"
Posted September 24, 2008 

Walter J. Hickel Interview"

Posted September 11, 2008

"The Alaskan Queen"
Posted September 9, 2008 

"Evercore Partners, Inc."
Posted September 3, 2008 

"Stalin In The
White House"

Posted September 2, 2008 

"Cal-Maine Foods Inc."
Posted August 4, 2008 

"The Mongolian Revolution"
Posted July 10, 2008 

"Mongolian Newsletter, First Edition"
Posted July 2, 2008 

"Goldsource Mines, Inc."
Posted July 1, 2008

"The Douglas Lake Story In The Age Of Fear"
Posted June 25, 2008 

"Mongolia: The 10th Richest Country in the World"
Posted June 10, 2008 

"North American Gem, Inc."
Posted June 5, 2008 

"The Emergence of Tanzania"
Posted June 4, 2008

"Tanzania - An Up & Coming Mineral & Agricultural Producer In Africa"
Posted June 2, 2008

"Western Potash Corp.

Posted May 12, 2008 

"Judy Garland &
The Subprime Crisis"

Posted April 29, 2008 

"Altek Power Corp."
Posted April 27, 2008 

"Letter to Prime Minister of Mongolia"
Posted April 24, 2008 

"The Mongolian Manifesto"
Posted April 4, 2008 

"Prime Minister Sanj Bayar of Mongolia Receives The Nobel Peace Prize"
Posted March 17, 2008 

"Olympus Pacific Minerals, Inc."
Posted February 28, 2008 

"Tanzania Gold - Douglas Lake Minerals - Harp Sangha"
Posted February 21, 2008

"Warren Buffett Receives A Call From Franklin Roosevelt"
Posted February 19, 2008

"Gold At 2000!!"
Posted February 14, 2008

"Entrée Gold, Inc"
Posted February 11, 2008

"The Unexpected
Mongolian Dilemma"

Posted February 2, 2008 

"Mongolian Gold"
Posted January 8, 2008

"Sir, Do Not Abdicate"
Posted December 27, 2007

"No More Munich -
The Mongolian Version of 1938"

Posted December 11, 2007

"Watergate Saved Nixon's Life"
Posted November 28, 2007

"The Mongolian Wakeup Call"
Posted November 16, 2007 

"Sanj Bayar -
The Prime Minister of Mongolia"

Posted November 15, 2007 

"Stalin & Chavez"
Posted November 9, 2007 

"Tagish Lake Gold Corp."
Posted November 1, 2007 

"Gold Indexed Bonds"
Posted October 11, 2007

"Jasper Mining Corporation"
Posted September 27, 2007

"Ghengis Kahn Returns"
Posted September 27, 2007

"Interview with Professor William Pfaffenberger - Torch River Resources"
Posted September 22, 2007 

"Interview with
Jim Davis - President of Leeward Capital Corporation"

Posted September 4, 2007 

"Interview with
David Hjerpe - Newmac Resources, Inc."

Posted August 27, 2007 

"The Age of Special "Corporate" Relationships"
Posted August 23, 2007

"Entrée Gold Inc."
Follow Up Report #1

Posted July 24, 2007

"Aldershot Resources Ltd."
Posted July 16, 2007 

"Portal Resources"
Posted June 12, 2007 

"Ghengis Kahn Was Hungarian"
Posted May 31, 2007

"Bayswater Uranium Corp."
Posted May 30, 2007 

"Brilliant Mining Corp."
Posted May 22, 2007

"Golden Valley Mines, Ltd"
Posted April 21, 2007

"Warren Buffett - Franklin Roosevelt"
Posted March 15, 2007

"Rubicon Minerals Corp."
Posted March 1, 2007

"Robert Friedland -
The Man of The Year"

Posted February 21, 2007

"Lexam Exploration, Inc."
Posted February 11, 2007

"My Father Died In Auschwitz"
Posted January 19, 2007

"WisdomTree Investments, Inc."
Posted December 26, 2006

"Entrée Gold Inc."
Posted December 13, 2006

"Aero Mechanical Services, Ltd"
Posted November 17, 2006

"This Year I"m Voting For Dick Nixon"
Posted November 7, 2006

"Global Options
Group, Inc."

Posted November 1, 2006

"The Arrival of the
Nickel Billionaires"

Posted October 18, 2006

"The Kennedy-Nixon debate revisited"
Posted October 4, 2006

"Brilliant Mining Corp."
Posted September 17, 2006

"A Matter of Reasonable Doubt"
Ken Lay - Enron

Posted August 30, 2006

"Silver Wheaton - SLW"
Posted August 28, 2006 

"Silver In The
Twenty-First Century"

Posted August 16, 2006

"The Age of Mediocrity"
Posted July 19, 2006

"Let There Be Sunshine"
Kirk Kerkorian

Posted July 12, 2006

"Oil & Gas
Energy Crisis Solution"

Posted July 3, 2006

"I Am An Immigrant!"
Posted June 7, 2006

"Northern Star
Mining Corp."

Posted May 19, 2006 

"Gateway Gold:
It"s A Gold Story"

Posted May 15, 2006

"Ken Lay's Legacy"
Posted May 8, 2006

"The Principal Guest Was Missing"
Posted April 25, 2006

"J.P. Morgan Offers Advice To Ken Lay"
Posted April 11, 2006

"Pocketful Of

Posted April 8, 2006 

"Midway Gold
Posted March 23, 2006 

"Harvest Gold"
Posted March 2, 2006 
"Sparton Resources"
Posted March 1, 2006 

"Interview with
Robert McEwen-
U.S. Gold Corporation
Posted February 22, 2006 

"A Tribute to
Rudy Giuliani
Posted February 15, 2006
"Your Money Is Not Yours"
-Enron & Martin Siegel, Esq.

Posted February 9, 2006

"Other People"s Money -Enron & Martin Siegel, Esq."
Posted January 28, 2006

"Northern Star Mining"
Posted January 16, 2006 
"Sonesta International Hotels Corporation"
Posted December 29, 2005 

"The Currency of Mass Destruction"
Posted December 5, 2005
"Bunker Hunt-Silver-China"
Posted November 28, 2005

"50 Relatives Worse Than Yours"
Posted November 14, 2005

"Then And Now"
Posted November 9, 2005 

"The Business of Hungary is Business!"
Posted October 31, 2005

"Mr. Prime Minister"
Posted October 13, 2005
"U.S. Gold Corp."
Posted September 29, 2005

Posted September 23, 2005

"Mr Clarke -
Call In The Boys"

Posted September 12, 2005
"A Letter To
President Bush"

Posted September 8, 2005

"Mr. Smith Goes To Hungary"
Posted September 1, 2005
"Orko Gold"
Posted August 18, 2005

 "Near Hit"
Posted August 16, 2005

"An African Queen"
Posted August 11, 2005

"1848 and Beyond"
Posted August 4, 2005



Andrew Racz. 300 East 54 Street, Suite 26C, New York, NY 10022
Phone: (212) 319-6949 Fax: (212) 753-1944. E-mail:

Copyright © 2011 Andrew Racz. All Rights Reserved.