Canterbury Park Holding Corporation (CPHC), mcap=$102m, price $21.16 vs $23.54

– The operator of the horse racetrack and card casino in Minnesota.
– Gaming operations are consistently profitable with the company at 6.4x TTM EBITDA.
– Additional upside from sports betting expansion in Minnesota and development of underutilized land adjacent to the existing properties.
– Some of this land has already been sold or contracted for development.
– A strong balance sheet with a net cash position and land ownership.

Valuation: DCF model results in $118m value of current operations + $13m net cash + $30m for underutilized/development land + 6m in employee retention credits for a total of $167m or $35/share.

Exp. gain: +50% to $35/share.

Full $CPHC write-up (free guest account required):

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