River Rock Entertainment Authority

As I told you before, if the word “Authority” is in the name, chances are, things are pretty screwed up. However, like I told you before, it is hard for an authority to go into bankruptcy. If it does, it will take a government or two along with it. This authority is rated “B2” by Moody’s and “B-“ by Standards and Poor’s. At least they are not rated “C” to “CCC” so it is not ready for insolvency yet, according to the rating agencies. I also own the bonds of this authority.

Let’s say that you would buy this bond on May 1, 2011 and kept it to maturity on Nov. 1, 2011.

You would make the following from each bond purchased.

1. In appreciation, you would make $63.75.
2. In interest, you would make $48.75.
3. Total return would be $112.50 on an investment of $936.25 in 6 months.

That is an annualized return of 24.032%.

River Rock Entertainment Authority operates as a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians of California, a federally recognized Indian tribe. The company owns and operates the River Rock Casino, a gaming and entertainment facility located in Sonoma County, California. It offers slot and video poker gaming machines, house banked table games, poker, food and beverage offerings, and goods for sale in vending machines.

As of December 31, 2009, the company operated 1,212 slot and video poker gaming machines, 18 table games featuring Blackjack, Three Card Poker, Mini Baccarat, and Pai Gow Poker, and 6 tables featuring Texas Hold’em Poker. River Rock Entertainment Authority was founded in 2003 and is based in Geyserville, California.

If you want to know more about the company visit their website.
http://www.riverrockcasino.com/

Here is a report from Bloomsburg Business Week

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=9682060