and its route business<\/a>. That unit services gaming devices found in non-gaming venues, such as bars, grocery stores, restaurants, and more.<\/p>\nWith a market capitalization of $670.37 million, Golden is classified as a small-cap equity. But it’s a potentially potent name, as highlighted by a six-month gain of 88.55 percent. The Russell 2000 Index, a widely followed basket of small stocks, is up 48.24 percent over the same period.<\/p>\n
Compelling Case(s) for Golden Stock<\/h2>\n
Bain says the total amount of land being sold by LVS for $6.25 billion is roughly 100 acres, whereas the Strat and Golden’s unused Strip property combines for approximately 37 acres.<\/p>\n
Based on that, the analyst notes the $6.25 billion Sands sale equals $62.5 million an acre, implying Golden’s Strip land is worth $2.3 billion in a high case scenario.<\/strong><\/p>\nIn a mid-range example, Golden’s Las Vegas real estate assets could be worth $1.48 billion, according to Bain. That’s still more than double the operator’s current market value.<\/p>\n
The analyst’s low case is still bright for Golden stock<\/a>. Assuming 15 percent return on investments made at Strat, that property could generate $65 million in earnings before interest, taxes, depreciation and amortization (EBITDA). At a multiple of 12.8x, that values the venue at $832 million, a sum that doesn’t include the operator’s 17 acres of undeveloped land.<\/p>\n","protected":false},"excerpt":{"rendered":"Wednesday’s news that Las Vegas Sands (NYSE:LVS) is selling the Venetian and Sands Expo and Convention Center for $6.25 billion is obviously a plus for that company. But that deal is potentially beneficial to other Sin City operators, including a surprising name in Golden Entertainment (NASDAQ:GDEN). Roth Capital analyst David Bain says LVS’s decision to […]<\/p>\n","protected":false},"author":46,"featured_media":166263,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Golden Stock Could Soar as Investors Realize Value of Vegas Land<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n