International Game Technology (IGT)

Times are likely to be tight in Vegas (and other gambling destinations) for 2008 as disposable income gets squeezed, and that's likely to filter down from the casino owners/operators down to the suppliers, like IGT, with 70%+ market share in the slot machine business. But we're roughly 12 months away from the start of the next replacement cycle of gaming equipment in most casinos, which even if slightly stunted by some casinos' desire to cut spending, is still going to be a boom revenue/earnings period for IGT. As an added catalyst, IGT is in the process of installing their first server-based machines in Las Vegas -- a huge value-add concept for an industry that is masterful in their ability to constantly monitor and manage what's going on on their gambling floors in real time -- which could have a revolutionary impact on the electronic gambling machine business. If interest in this technology takes off like it's expected to once the first system is up and running, it could mean 2009 and 2010 are far beyond analyst expectations for IGT. Again, 2008 could well be a slow year, but an Outperform call for the 2-4 year time frame seems like a good bet (pun intended) to me.

This is ahype pick. Article in Marketwatch about future of slot machines. Looks like this outfit has a great vision. It also helps that they are making $$$.
PE is high but this company has higher margins than peers. "I'm all in"

International Game Technology is the leading slot machine maker in the gaming industry. While investing in casinos themselves can be overly risky due to the preponderance of huge debt financing in the industry, slot machines are the number one money makers on casino floors and the industry is such that player demand requires casinos to constantly change the machines on the floor. IGT has made many key acquisitions to move from simply slot-maker to complete IT services for casino floors including table management, RFID chips, and slot loyalty programs. Besides benefitting from expansion in the casino industry, many states are legalizing slots-only gaming at horse racing tracks.

P/E is getting lofty but in the cyclical gaming world slot coin in is up and poker and other table games are cooling off. This is good news for those in the business of making slot machines.

the are leader in slots and casinos continue to grow and grow, plus the addition of several indian casinos.

Take advantage of Asian gaming.

IGT is positioned to dominate the next-gen gaming technologies. By and hold two years.

International growth.

good industry growth, industry leader

The deal with Microsoft on the Surface platform added unrealized value.

Those baby boomers are going to be hitting the casinos soon...instead of buying an individual casion buy IGT, the dominant game machine supplier to these casinos

Losing the plot. Dominance ebbing with WMS and Aristocrat rising strongly in the market. They are lucky Bally has yet to get their plot together having created a luckless looking senior management team that has little or no gaming expertise. (shades of Loveman but without the clout..ouch)

While 2008 may be slow due to the tough economy, casinos are just starting to enter a replacement phase for slot machines and IGT is the biggest player in this business -- and has a wide moat. On top of that, server based slots is a new concept on the horizon for casinos. I have seen it referred to as like the difference in colored TV vs. watching in black and white. If this is true, that large of a revolutionary concept in slots doesn't appear to be priced into IGT's pricing -- and it is one of the leaders in server based slots. What does this all mean? The stock is beat up and near its 52 week low due to tough economy. Stock should go up as replacement cycle kicks in, probably in 20098. If server based slots takes off as some are predicting, this stock will zoom up. In my mind, the upside is much greater than downside.

Industry leader in the design and manufacture of gambling machines will ride product replacement cycle of growing gaming industry

Gaming continues to grow rapidly both here and abroad and they will continue to grow as well!

Great long term play. Recently beaten down .... currently at an excellent buy in price of $34.21. I expect this puppy to hit $50 by this time next year.

Gaming is only growing and expanding both domestically and internationally and IGT will benefit. Think about it, the only gaming news you ever hear about is how more and more states are opening casinos and allowing gaming. Never have I read a news story about casinos closing or a state banning gaming. Gaming is a great revenue machine for states in terms of taxes. Also an excellent way to play the Chinese market without being directly invested there.

Slots are beginning to switch to a server/client model which allows for casinos to improve margins. IGT has tremendous R&D in this area and is at the forefront of this transformation.

In the past month I have added to my position several times (buying on weakness) to the point where approx 20% of my entire portfolio is in IGT.

STRONG BUY recommendation here

Casinos will need to keep buying slots in a challenging area. Plus, with more horse tracks adding them, the market opens up.

A SURVIVOR, ILIKE THIS ONE AND I WILL BUY MORE.

Great slot machines and lots of folks playing them. Casinos will continue to grow outside of Vegas and IGT has a good business plan.