| Small & micro cap project / Activism insight
Canterbury Park Holding Corporation: Signs of moat

Basics
M. cap: $48 million
The company hosts pari-mutuel wagering on horse races and unbanked card games at its Canterbury Park racetrack and card casino facility in Shakopee, Minnesota.
Impact of coronavirus pandemic
On March 16, 2020, the company temporarily suspended all card casino, simulcast and special events operations due to the coronavirus. This directly affects the company’s total revenue.
What we like/ Signs of moat
- Negligible debt ($1.85 million)
- Profitable company
- Class A license prevents competition to some extent: The company holds a Class “A” license, issued by the MRC, which allows the company to own and operate the racetrack. The Class A licence prevents competitors in the seven-county metropolitan area where thoroughbred and quarter horses are raced.
- Competitor: The Racing Act provides for the MRC to issue an additional Class A license within the seven-county metropolitan area, if the additional license is issued for a facility that, among other conditions, is located more than 20 miles from the racetrack, contains a track no larger than five-eighths of a mile in circumference, and is used exclusively for harness racing. In January 2005, this additional Class A license was issued to NMHI. As you can see in the link below, the race track event organized by the company is much larger than NMHI. https://www.startribune.com/canterbury-park-and-running-aces-prepping-for-big-final-weekend/560189512/
- Notable shareholder: BlackDiamond Management, which runs an ultra-concentrated fund (6 stocks), owns 4.6% of o/s stock of the company.


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