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IGT - International Game Tech.Week Ended: 3/17/01
Price 50.71 P/E Ratio 25.44 52 Week High 57.25
Last Week + 1.81 Earnings Date 04/19/01 52 Week Low 17.44
Picked At 53.52 Date Picked 2/20/01 Sector Services
Current 50.71 Open 52.00 Change -1.78
Low 50.59 High 52.12 Volume 338,200

Company Description

International Game Technology is an operator and manufacturer of computerized casino gaming products and proprietary gaming systems. For the 3 months ended 12/30/00revenues rose 46% to $301.7M. Net income increased 14% to $48.2M. Revenues reflect increased domestic product sales due to the popularity of IGT%s video reel offerings. Net income was partially offset by increased incentives related to higher sales volumes.

Play Description

February 20, 2001

Do not let the technology word scare you. IGT is the leading innovator, manufacturer and seller of electronic casino games and systems. This stock was a superstar in the early 90s due to the unprecedented growth in new casinos across the country. During that time, IGT split its shares 2:1 four times in a four-year period. Most of these splits were announced when the stock was trading in the $50 to $60 range. Clearly the stock is a split candidate now that its recent rally has placed it back into this price range. IGT has many of the same characteristics that our recently successful plays possess. The most important characteristic is stable and growing earnings. IGT is expected to increase its earnings more than 35 percent over 2000's earnings. What’s more, IGT is trading at a reasonable forward P/E of 22.3, which offers investors some security in a market that is crushing high P/E stocks. IGT soared to a new high of $53.90 on excellent volume of just under a million shares today. A move above this price tomorrow, accompanied by first hour trading volume over 250 K, could be a good entry point for momentum traders. The MACD is positive and took out some resistance today, which suggests that a sustainable move is likely. OBV and Money Flow are also both strong.

Picked on February 20th @ $53.52
Change since picked +0.00
Stop Loss @ $49.50


March 13, 2001

Either IGT was unfairly cursed by having the word "technology" in its name or investors were simply looking for anything they could sell for a profit during yesterday's steep market slide. That said, we are pleased to take a profit, considering the recently dismal performance of the stock market. Some of you may be interested in jumping back on board if IGT can find support around its 50-DMA of $50.44. Bounces off this trend line have proven to be quite profitable throughout IGT's lengthy ascent.

Picked on February 20th @ $53.52
Profit/Loss +1.23 (2%) (Stopped Monday @ $54.75)
Best Profit +3.73 (7%)

March 11, 2001

IGT's steady ascent into new high territory was stymied on Friday by a stampede of nervous traders who desired to cut their stock positions before the weekend. That said, this major inventor and purveyor of casino games and electronic cash systems, has displayed excellent relative strength. After establishing a new high of $57.25 on Wednesday, IGT only pulled back less than two points. When the market inevitably oscillates back higher, IGT is likely to be one of the first stocks to go back up. If we see some early weakness on Monday, a bounce off the 10-DMA of $55.22 may prove to be an excellent entry point. Otherwise, we would like to see IGT trade above Friday's high print of $56.46, accompanied by midday volume over 300,000 shares, before adding to positions. The MACD is still in a nice ascending pattern. Although the OBV and Money Flow pulled back slightly, both indicators are still very strong and signal continued long term accumulation of IGT.

Picked on February 20th @ $53.52
Change since picked +2.13
Stop Loss @ $54.75


Copyright 2001

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