[IMG] First of all I want to clarify that I am not a fundamental...

First of all I want to clarify that I am not a fundamental analysis professional. I am an amateur who enjoys looking for shares of companies at a good price, doing a micro and macro economic analysis and sharing them. Obviously some more educated person can correct and say that the analysis is full of errors.

Silver Heritage is a hotel and casino operator. Two of them located in Nepal, the rest in Vietnam.

The most important asset of Silver Heritage is the new "Tiger Palace Resort" casino located in Bhairahawa, Nepal, a few kilometers from the border with the populous Indian province of Uttar Pradesh.

It is a mystery how much this new asset can generate income, but it is an intelligent bet: legalized game next to a province with more than 200 million inhabitants, where bets are forbidden. Let's not forget that India's GDP grows at more than 7% per year. In relation to the construction cost of the Tiger Palace casino hotel, Silver Heritage seems to quote at a very low price.

The Revenue generated in the second quarter of 2018 and the level of occupancy guarantee the business model for this new asset. The casinos of Kathmandu and Vietnam set new revenue records.

Several factors to consider:

- RENEWAL OF THE GAUTAM BUDDHA INTERNATIONAL AIRPORT



Since 2015, the airport has been undergoing renovations to update it internationally, which is only 12 km away from the Tiger Casino. It is estimated that between 15,000 and 25,000 passengers a day will pass through that airport. The impact on Tiger will be enormous, since this airport is currently reached from Kathmandu or from Gorakhpur Airport, India, located 100 km away.

http://english.onlinekhabar.com/gau...uction-by-2019-june-first-flight-in-sept.html


- FOR THE LONG TERM: TRANS HIMALAYAN RAIL.



China is India’s largest trading partner as the bilateral trade reached historic 85 billion dollars in 2017.  Nepal is in the middle of these two giants. On a recent visit to China, President Nepali, Oli, said: “The two sides agreed to intensify implementation of the Memorandum of Understanding on Cooperation under the Belt and Road Initiative (BRI) to enhance connectivity, encompassing such vital components as ports, roads, railways, aviation and communications within the overarching framework.” China is already providing technical assistance to Nepal’s Department of Railways to assist with feasibility studies for nine lines within the country totalling 945 route-km. These include a 287 km east-west trunk route linking Kathmandu with Pokhara via Galchhi and a second line diverging from this route at Muglin to serve Chormara, Nawalparasi, Bardhaghat, Lumbini and Butwal, close to the Indian border. Este nuevo tren terminaría su recorrido En Nepal cerca del Tiger Hotel Casino.

http://echoofindia.com/kolkata-nepal-be-bridge-cooperation-between-india-china-says-oli-139738


- THE GROWTH OF INDIA AND UTTAR PRADESH



The economic situation of Uttar Pradesh will affect the income of the Tiger Hotel. India grows at 7% per year and the largest Samsung factory in the world opens in the neighboring province ...

http://www.dnaindia.com/business/re...bile-factory-in-india-s-uttar-pradesh-2634764

- THE COMMENTS IN TRIPADVISOR.
In 20 days in July, 40 comments were written, almost all of them awarding 5 stars and describing the hotel as very good at the infrastructure, attention and food level. Also in booking the 23 comments are very positive in general lines. Remember that the complex has been open for less than a year.





https://www.tripadvisor.com.ar/Hote...agar_Lumbini_Zone_Western_Region.html#REVIEWS

https://www.booking.com/hotel/np/tiger-palace-resort-amp-casino.es-ar.html?activeTab=htReviews

- 2Q TRADING UPDATE. RAMP UP TO PROFITABILITY







The numbers presented in the notes of July 19 in relation to the second quarter show the continuity of a growth of the group's renevue, supported by the new Tiger Hotel.

- CASH.
In the presentation of the 2q, the group's revenue record is reported, but the costs and the loss, that would have been reduced by 50% from 1Q18 to 2Q18, are not reported.

As of December 31, 2017: 11,231 million usd.
As of March 31, 2018: 7.974 million usd.
As of June 30, 2018: 6,570 million usd.

- LOOKING FOR A SAFETY MARGIN.
It is difficult to find a book value per share in a company that is in time to start to reap the rewards of a long investment. How much is Tiger Palace worth before and after the reforms of the Gautam Buddha Airport? And when it is positioned as the main gaming destination for the inhabitants of Uttar Pradesh? At the current price Silver Heritage quotes at 0.4 P / B, we clarify that the land and properties are valued at cost, less depreciation.
The high volatility and low volume of the stock means that until last week the P / B is 0.8.

CONCLUSION: if Silver Heritage be profitable, the stock price wouldnot be the current. I think that it can be an action to multiply by 3 or by 4 taking into account positively all the mentioned factors. It is a very interesting bet for risk lovers.