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.
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