Short International Game Technology (IGT)
Game Technology (IGT)
The Casinos business has been under pressure for some time
now with the US
in a recession type environment and travel expenses escalating. Names such as
Las Vegas Sands (LVS), MGM Mirage (MGM) and Wynn Resorts (WYNN) are grouped
together as an industry having difficulty. MGM Mirage the weakest of the three
with both declining revenue and earnings estimates.
Game Technology is a supplier of gaming machines, systems, parts, equipment and
services. The stock has been growing as it replaces older technology with newer
cashless systems in resorts across the country. But it’s recent quarter feel a
little short and the companies chairman gave lowered guidance for the rest of
2008 and the beginning of 2009.
during their most recent conference call lowered their earnings guidance from a
range of 35-40 down to a range of 30-35. In addition to the poor guidance, the
company is expected to see revenue decline year over year for the current
quarter, the next quarter, and the current year. The company has missed two
quarters in a row, so the lowered guidance could have been anticipated.
market being very volatile at this time, wait for a day when the whole market
rallies to short the stock. Set a market stop 5% away from your purchase price
and lower the stop daily if the stock moves down.