I have been a visitor to the track a couple times in the last few weeks so hopefully I can add my insights to those already posted. Unfortunately we had a short racing season this fall, and I worry about a long winter through which the track has to cover some heavy depreciation now that the "construction in progress" account will start to amortize. However, at least this is a fixed, non-cash cost. I am not into OTB or simulcast racing, so I can't provide much insight there.
1) Track has a good location just off I-64 between Richmond VA (where I am) and Williamsburg VA. Good potential to draw from both the Norfolk/Newport News area as well as the Richmond area, plus anybody with access to the I95 corridor wanting to make the trip (DC area, North Carolina).
2) As an article posted said, horses are a big business here, but all the home grown talent has to go out of state to actually race. Costs the local owners a lot of $$$ for travel and board for these horses and their trainers. With a regional track opening up, that will very much incentivize the owners to keep their horses in-state. Higher quality horses will bring higher purses which will draw more horses in from out of state.
3) BEAUTIFUL building and track, and once some grass starts growing back after all the construction it will be even more spectacular. The CDWN grandstand has a red brick architecture that quite nicely blends in with some of the 18th-19th C colonial buildings that are associated with this area.
4) They put you through the wringer. $5 general admission just to get in the door, plus usual insanely high concession prices for food, and then wagering. Plenty of tent space outside for corporate / organizations to have an outing, and these seemed popular. Weekends are absolutely packed. Weekday afternoons have a good draw, too, especially with the gorgeous "autumn" of 85 degree days we are having out here. Just don't tell my boss about our weekday afternoon "department outing".
5) I grew up in Nebraska and our track there seemed mostly to draw, if you will excuse the term, "riff-raff". I did not see this at CDWN. All sorts of folks at CDWN, from suits to good ol' boys, young and old, college students, very "middle classy" and some pretty long lines at the concession stands and paramutuel windows.
6) While I share the concern of some of the earlier messages that the horseracing industry in general is on the decline, CDWN is very much a "fad" right now and a lot of folks are coming out to see what's going on. The usual race program has 9 live races at CDWN then a simulcast race from elsewhere (but of course there are simulcast races all day, but Race 10 is "highlighted"). The place empties out after the 9th. People want to see the races live. Long term, maybe the track will die out and go the way of many of the other racing facilities of the US. But all the "side attractions" that CDWN is trying to provide to promote a family atmosphere should help offset that factor.
7) Weekends - They have been having a band or some sort of event BESIDES racing to draw the crowd. This has been successful to date. Was talking to one of the parking enforcement guards at the track yesterday and he said they had like 14,000 people out for one of the concerts one weekend. He also said something about them charging $5 admission for early birds then $10 after the 5th race or something, to gouge the concert-goers a little bit.
8) Locals - If they hype the stock enough locally, you can get some regional folks who have been to the track to "buy and hold" and keep some shares away from the short-termers.
Anyway, am thinking seriously about a buy here. Technicals look good as well. I need to separate my emotions as a "customer" of the facility from my scrutiny as a potential investor before I go any further, however. |
