WMS Industries, Inc. (WMS)

1/30 in Casinos & Gaming -(62.7 @ B/A+)

I haven't been watching these stocks long, but these look the most appetizing as of right now.

just following the all-stars

Survey the machines in Indian casinos. The ones made
by WMS are the most creative, have the best bonus rounds, and have good sound effects. Konami is getting better with some new clever machines. IGT needs to get on the ball.

high tech slot machines, totally interactive, with casino growth outside of china they should be pumping out machines for years

WMS is a growing company in a flat industry. The industry leader IGT is losing marketshare to WMS. WMS is increasing the base of leased machines (which generate long term profits at the expense of short term sales) and taking the leadership role in new technology. Walk a casino and look at he games that are beining played.

break resistance. buy buy buy

STAY WITH HIT

I have been tracking IGT for a long time now, and given their announcement of sharing server based technologies with one another, you will see yet another rise in the compatibility of games to crreate more buzz in the industry for gaming execs over the next two to 4 years. I see both companies (given the rising expansion of gaming in california, macao and other places in the world) benefitting from this partnership to garner even more revenue sharing possibilities with the casinnos and racinos. I am making my pick now even though I am only dipping my toe in really buying minimal position but adding reminders at 37 and 35 respectively.

One of few stocks in the world that seem just too expensive even though it operates in an industry outside of the FIRE sector of economy (FIRE = Financial, Insurance & Real Estate).
The valuation to earnings potential going forward is not worth it, nothing going for it on the dividend end, and there would be other companies in the sector that are much more desirable.



I'd sell this company to put my money elsewhere. In fact, I'd rather use that money and pour it across residential real estate, apartment buildings, other stocks, commodities, or bonds. Even if it survives the next decade, it will lag its peers and it will likely lag S&P 500.


SELL.


bearish on pbr, cog, io, mcf, chd, prgo, zep, psa, ccl, joe, celg, sndk, wms, brk-a, alxn, mygn, otex, apol, fun, uti, swn, goog, tm, bms, stec



These picks are within this CAPs account that is market neutral - all longs are offset by a short. All long & short picks are diversified across industries & world location to limit downside exposure. This CAPS account will maintain at the very least 20 picks and at the very most 80 picks. Picks will be ended in long/short pairs to remain neutral.

slowly but surely returning to dominance.

People like to gamble. This stock seems like a fun gamble as the gambling industry continues to grow across the country.

VL

Possible that legislators in Illinois will approve multiple casinos and with WMS being local to Chicago, they are licking their chops in anticipation of this market opportunity.

Gotta put the garbage somewhere!

Unease over real estate market conditions will push home owners into staying put longer and investing in remodels/redecoration projects over the near term.

“High Stakes Higher Rewards” WMS Industries, formally known as Williams Electronics, was founded way back in the mid 40’s. It designs and markets gaming machines and video lottery terminals. The company has offices spread in various parts of the globe, however over 90% of its inflows are derived from the domestic US market. Its major revenue is derived from sale of machines to casinos that contribute around 60%, while the rest is provided by gaming operations, which include amount received by means of participation and lease rental. WMS’s licensed games include popular titles like Monopoly, Scrabble and Hollywood Squares.

The company is witnessing a great bullish phase. Over the past year the stock has risen by over 50% reaching to an all time high of $36. It’s backed by the rise of WMS’s market share from a mere 8% few years ago to a healthy current share of over 20%. However this might just be the tip of the iceberg. The Pennsylvania market provides a major scope, with opening of six new casinos and huge capacity of 61,000. This figure is significant as in the past only around 80,000 new machines were sold across the US annually. Further, the casino industry is going through a replacement cycle, where existing slots are being replaced by modern server based technology, as we are seeing in Florida based tribal casinos. Considering company’s recently released slot games under the Monopoly and Top Gun names and unique server based technology that allows casino operators to control their slot machines from control rooms, the replacement trend will be a major boosting factor in the coming years. Adding to it WMS’s growing margins, healthy market conditions and expected resumption of sales to Russia by 2007, will surely act as positive factors taking the stock even further.

IGT just got hammered on its quarterly earnings, and they are the big dog in town. WMS results for the next few quarters will be no different in this recession economy, they are in the same boat.

Stock has peaked and will move back down to $25.00

slots are hot