A Special Report on RIVER ROCK ENTERTAINMENT AUTHORITY.People are asking me if this Indian tribe will pay off come Nov. 1, 2011. So I put together this special report to answer that question. I have this bond issue and many of my friends as well. However, I hold very few of them because I always thought them to be speculative.
My opinion, this is a self governing organization and a bankruptcy cannot happen. I would think that they will pay off there bonds on Nov. 11, 2011 at $1,000 per bond with interest. But not on Nov. 11, 2011 like the indenture says. I think that they will have the bond holder refinance the bond issue for another several years. I think that is what the bond price is reflecting.
The bonds sells for $741.25 per bond and pays 9.75% interest. If they do not pay on time, they will pay in the future. Below is the reason why I feel this way.
Insider information about the bond issue
The bond sells so low because many people around the world do not understand that Native American Nations are self governing organizations. So they do not know how to handle this investment. If I am right about them paying on Nov. 11, 2011 and you buy the bond today for this price, in 30 days, you will make $258.75 in principal plus $8.25 in interest for a total of $266.88. That is a 36% return in 30 days. If I am right about them paying after maturity date then the investor will not get the 36% in one month. This issue is speculative at best for bond holders.
http://www.fructivore.com/2011/03/moodys-downgrades-river-rock-entertainment-authority-bonds-too-soon-to-be-concerned/
They are a Tribal governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians (the “Tribe”), a federally recognized self-governing Indian tribe. The Tribe has 1024 enrolled members and approximately 75-acre reservation in Sonoma County, California. We own and operate the River Rock Casino, a 68,000 square foot facility which is on the reservation and overlooks the scenic Alexander Valley, 75 miles north of San Francisco. River Rock Casino features 35,500 square feet of gaming space containing 1289 slot machines. They have 4 food outlets: The Center Stage Bar Grill-64 seats, bar top video poker games, The Quail Run Restaurant-buffet menu, 152 indoor seats and 96 outdoor seats, Fortune Café-24 seats, offering quick service , cook-to-order Asian themed menu, Lucky Dogz snack shop-open 24 hours, seven days a week and video poker machines, as well as a full-service restaurant. There gaming facility is the closest and most accessible gaming facility to nearly all the residents of the San Francisco bay area and Sonoma, Napa and Lake counties.
The Tribe has 1,007 enrolled members and approximately 75-acre reservation in Sonoma County, California.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTA0MDE1fENoaWxkSUQ9LTF8VHlwZT0z&t=1
RIVER ROCK ENTERTAINMENT AUTHORITY ANNOUNCES SECOND QUARTER 2011
Refinancing problems seem to be resolved according to researcher.
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