Earnings implies that they made money. If you are looking for an actual profit, you are years away. It seems likely, that since there has been no announcement, that it they will try to keep the required report as quiet as possible.
WMS is coming out with some great products, but I would wait to buy after earning in march. After earning we could see under 12 which is a great entry point. Future looks good
Whatever - The bottom line is it was a 2.00 stock selling for 7.00 and now its a 2.00 stock selling for 13.00
Lots of Q4 activity pointing to massive Q4 write-offs:
- Completion of WMS acquisition, with corresponding legal and corporate finance expenses; not cheap
- Beginning of WMS/SGMS integration, lots of redundancy to eliminate; write-offs of worthless intangibles
- Termination of ALW, MC and others; not cheap
- Installation of interim CEO; time to eliminate ALW's bad investments and other errors; now or never
- Search for permanent CEO (?) and other WMS/SGMS management shuffling
- All the "non-recurring" year-end write-offs that SGMS seems to always have from its poor performing business units.
Lots of huge blue chip companies have already announced their Q4 results. SGMS isn't announcing their until the second week of March. Plenty of time to generate a big list of write-offs. The over/under on the total will be huge! Sell now!
You can find this guy on the MGT and LACO message boards. He is not too bright when it comes to the market but he certainly thinks he is.
tobydoginhs • 47 minutes ago Flag
Message to Shorts. Switch from MGT to SGMS.
A very startling set of statistics for those individuals forecasting the demise of MGT.
I have done a per share analysis for MGT and SGMS. Cash per share is MGT 66 cents,
SGMS is 86 cents per share. Debt per share is $1 for MGT, SGMS is $20 per share.
Intangible assets (expenses saved for future write off ) is 25 cents for MGT and $10
per share for SGMS. Subtract those debt and intangible amounts from today's share
price, namely $2.60 for MGT and $15.90 for SGMS and then add back the cash per
share and you get a positive price of $1.90 per share for MGT and a negative price
of $13.24 per share of SGMS. SGMS is technically bankrupt, while MGT is now close
to its floor. Next ask the question. Is the future of Gaming in internet and wireless
(MGT) or in brick and mortar casinos (SGMS)? Further, will some lawyer type explain
the effect of a declared bankruptcy by SGMS on the patent negotiations as this may
be a possibility, Less
Mike may have given his notice a year ago, but his whacking began 3 years ago (11/2010) when he was demoted from CEO to President of SG Asia/Pacific. In typical SG fashion, they couldn't terminate him completely and cleanly then, but the game was essentially over right then for Mike. Lorne knew it (obviously), the BOT knew it, you knew it, customers knew it and so did everyone else. The three years working Asia/Pac from Connecticut was just a form of extended severance pay with a soft "work at home" non-compete.
Mike was demoted from CEO in 2010 because the company's performance during the prior 4 years (one with Mike as CEO, three others as President/COO) were consistently disasterous, both commercially and financially. Every quarter brought more contract losses, more negative earnings surprises, more giant write-offs (remember Mexico?) and more promises about how the next new China marketing plan was going to make ticket sales there finally grow. They never did.
I agree with you about a few things: Mike is a boy scout and SG was a real mess when he got there. I hope you will agree with me that Mike was a great US Operations guy at Gtech, but he is not a corporate strategist, not a technologist, not an international BD guy, not an organizational process redesign expert, not a guy accustomed to competing from a position of weakness, not a corporate turnaround guy, not an #$%$-kicker and not a CEO. With all SG's inherent dysfunction, he was never going to fix SG, and that became more obvious as time went on.
The good news for Mike: His beloved Yankees have signed Tanaka, Beltran and Ellsbury, and spring training starts in 5 weeks.
Selling some 39.7 mil shares of sportech! Should be enough to pay off the Weil family. Announcing some new deals etc. Maybe we can get back to profitability by the end of the year. Investyourbuck!
Chambrello wasn't whacked, he had given the board notice almost a year ago.
In this industry, very few individuals are respected and I mean very few. Mike was an exception. He walked into an awkward mess in 2005. Hired by the board behind ALW's back, even you can understand what that working scenario must have been like. SGI was a dysfunctional and broken mess, almost like Obama care. They handled instant tickets reasonably well and not much of anything else they had acquired. The many acquisitions were never reeled in, way too many "silos and cowboys." Creative accounting was every where, the amounts of eventual write offs due to irresponsible bids were staggering. One by one Mike cleaned them up, costly yes, but these prior mistakes (before he arrived) would never be repeated.
Mike bringing in China was "HUGE" …. it has kept SGI alive all these years …. never forget that. Procuring and installing a new accounting system took years, designing new Lotto terminals that actually worked and required less maintenance will pay dividends for the next 15 years. Cleaning up the staggering software issues worldwide took Mike's leadership and his giving Beason enough "rope" to eventually make it happen…all of this took many years as the many cultures had to change.
This business is jackpot driven….only our marketing experts will argue this well documented point….meaning you must be ready for business when those huge rolls come. Mike had everyone ready.
I can't speak for ALW, but we all know his reputation … as for Mike he never oversells nor under delivers. He is humble by nature, doesn't blame predecessors, he simply rolls up his sleeves and tackles the task at hand. He made SGI respected in this gaming industry. He made everyone want to do better.That's what a Ieader does. Is the company still on the ropes…yep, no doubt about it … but it was on life support when he got there.
Bottom line, he was an honorable "boy scout " and SGI was lucky to have had him.
The old NY clan must be selling a few of their shares, and no one wants these shares! Clean up on aisle 2013. The dump will make SGMS cheap for the future, look for a low of $12 until we make a profit. My guess is the first Q of 2014!
WMS , IGT and Bally all have the second bonus round patients that are in question in lawsuit by MGT. When they go to court IGT and Bally along with WMS will reveal their patients in question. WMS has some exciting new games coming out soon.