Shuffle Master, Inc. (SHFL)

Shuffle Master, started in the 80’s at the casino capital of the world, Las Vegas, is one the leading developer and marketer of technology based products for gaming industry. Company’s core product has been the Shufflers where they have established a near monopoly with around 90% market share. Shufflers also contribute close to 50% to the total revenues. It segregates the offering in two major segments: Utility Products and Entertainment Products. Utility Products segments mainly offers range of shufflers contributing half of the revenues, while the other half is provided by Entertainment Products, which offer proprietary table games like black jack and poker.

Shuffle’s recent acquisition of Stargames has resulted in phenomenal performance with quarterly revenue growth inching closer to the 50% mark. Now, in the near future, this trend is expected to continue mainly as around 1,500 tables and massive total of 10,000 slot machines are expected to be established at Las Vegas Sands Casinos at Cotai strip. Further, if we consider expected combined sales of around 1,000 more tables, mainly at Venetian Macau and Far Eastern Consortium in couple of years to come, it seems certain that company will see a bright future.

The company also has exciting pipeline of new products like rapid table games, casino on demand and blackjack press. However, the core product, which will take the growth forward, is the recent introduction of new i-deal shuffler. It’s a third generation shuffler which is twice as fast as the older one. The older version has a market share of close to 40%, and a wave of replacement cycle for this high end and better margin producing product will take Shuffle Master even forward. Additionally, if we consider company’s recent venture with Sona Mobile for wireless gaming, and its re-entry in the booming slots market, we can safely state that Shuffle is all set to embark on a flourishing future.

SHFL is making huge strides into "next generation" gambling technology with RFID, "smart" dealer tables and much improved customer and cash tracking. Long term play as these technologies get released, and no casino is going to want to be left behind.

Gaming is a great area to be in, especially after the recent online gambling debacle (Grrr, stupid politicians.) But SHFL is not the spot for it. Silly lawsuits, lousy financials, market saturation, growing competition despite their incorrigible patent trolling. Find a better gaming play.

Great brand with very good growth prospects. Poker seem's to still be growing strong, heck World Series champion for 2006 walked away with $12 million. In 2000, 1st prize was $1.5 million and 1990 it was $895,000. Now all you have to do is make it to the final table to walk away with that kind of moola.
With a diversifed customer base, key patients (shfl is no slacker when it comes to bringing competiters to court, sort of good/bad scenario), and a dominate market position I'm going to take a dive in (hopefully not literally). Now if I could only afford a trip to Vegas...

Gaming is a hot sector. SHFL should do better as they report the next earnings report.

Recent drop in price make shares a good value, and new gaming opportunities around the world will let this stock continue to grow.

top niche player in an expanding industry. Great profit margins and a strong track record of growth.

Wow, SHFL has been getting hit pretty hard by the market lately - I guess they didn't like the recent acquisition. Well, despite how the masses feel, I think SHFL will outperform the market over the years. While there was/is a short-term effect due to the acquisition, SHFL knows what they are doing and it will only add to the strength of the company (and more importantly, the profitability).

Faces increased competition in shufflers from Vending Data. Market potential in Macau smaller than expected due to using shufflers in the back rooms to shuffle cards rather at the tables. This requires fewer shufflers than having one at each table. Also integration of Stargames might still face substantial hurdles. Competition in electronic table games is increasing as well. Risk to thesis: Someone could acquire them e.g. to get their IP. Also, they could have more near term success in placing electronic table games, e.g. in PA.

Q2 was disappointing but great things lie ahead. Demand for SHFL products looks strong both domestically and abroad (Macau).

SHFL finanical results are suffering as they have not profitable integrated acquisition. Revenue and profits are below expectations. My guess is that it will take longer than one year for a turn-around to outpace the market.

Some of the companies products are not finding the market acceptance that was hoped. Earnings likely to disappoint.

gambling is a growing industry

This is just a good company with very nice future potential selling cheap. Tom's written up plenty so I won't babble.

Yoseloff has lost it over the last few months and the high value paid for Star Games a lowly rated Aust slot maker is going to come back and bite him. A dicey Asian exclusive distributorship assocated with the Stanley Ho clan also spell impending troubles.

I believe Shuffle Master is perfect takeover candidate for IGT, Aristocrat, WMS Gaming, or one of the Slot Printer manufactures or even a manufacturer of gaming tables.

The price is Right for a takeover or a merger.

My bet is on IGT OR EVEN Atlantic City based

A.C. Coin and Slot. WHY NOT!!!

company is finally focusing on its main strengths and is trading at its 52 week low.

This stock has been pretty beat down and theres a ton of concerns about their recent business decisions. I say buy now

Way too much debt, and making poor deals, with no new product of its own.