WMS Industries, Inc. (WMS)

“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.

slowly but surely returning to dominance.

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

These guysare stealing slot machine market all over the place from IGT. This is big business. New casinos, more slots constantly, plus all old ones need upgrades.

WMS makes the best slot games by far.

I went to the gaming convention in vegas 06 to check out new games. All the big boys were there...but the place everyone hung out was over at WMS. The games they were pitching were plain and simple - cool. Me I'm a table games guy...but these slot machines pulled me right in. They were one of the first ones to put an aditional lcd screen over the slot machine for additional fun. It seemed like everyone else was fighting over the scraps of the same old games mixed up into one big bowl of soup. But this company seemed like they wanted to make some waves.

They have shown growth as a company, but for me...I liked what I saw first hand. If I walked into a casino I can tell you I would play one of those games.

VL

williams has inovated aggressively and taken floor space at almost every casino the last two years.

THIS STOK IS NOT A GAMBLE.......

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

Gotta put the garbage somewhere!

Company unable to compete with IGT, Aristocrat and Bally except to maintain the market share. No growth in site.

Strong dividend payer

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

Like the idea

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.

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.

Maybe the one company managed well enough to withstand this economy in the market it is in. We shall see.

just following the all-stars

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.