Pulling Profits Out of Slots

Bally Technologies (BYI), International Game Technology (IGT) and WMS Industries (WMS) pretty much dominate the market for video slot machines here in the U.S. Of the three, Bally is the only one whose shares are trading close to their old highs, closing Monday at $47.18. IGT stock peaked at $49.40 in 2008 but finished at $15.19 Monday. WMS hit $51.59 in 2010 but ended at $23.02 Monday.

All three stocks show above average volatility. Each is solidly profitable. Only WMS, though, is net debt-free, with more than double the cash on its books vs. total debt. WMS reported slightly disappointing earnings per share of $0.40 in its fiscal third quarter. For fiscal 2012 (ends June 30), the company is expected to post full-year EPS of $1.37.  Year-ahead expectations are looking for a nice rebound to about $1.60 per share....237 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.