Thanks for this thoughtful reply. When Japan legalizes gambling it is going to be huge for BYI. They say it will boost tourism to Japan, which is preparing to host the 2020 Olympics, while casino operators are considering investing billions of dollars in what could become Asia’s second-largest gaming market after Macau.
Sentiment: Strong Buy
The reason it has fallen is because earnings have been very weak at IGT. IGT is the biggest player in the space. When one player is weak, it signals to the stock market that maybe everything isn't so dandy in the casino equipment business, so funds and institutions decrease their holdings of casino equipment makers across the board.
Here's how to think of it: what if suddenly McDonald's sales tank, and you own Taco Bell. Wouldn't you consider selling the Taco Bell if you thought there might be a bigger issue with fast food?
In the longer run, the stock price will follow earnings. Earnings should be fine, and once IGT is bought out, it will actually be bullish for BYI as it will free up institutional money that wants to stay in the space and will put their money into BYI or SGMS. Additionally, if Japan legalizes gambling this fall, that will be quite bullish for the sector. Finally, when things are in play, and discussion of mergers and acquisitions increase, it can be beneficial for everybody in the space as more eyeballs kicking tires usually leads to a rise in the stocks.
That's the long answer. The short answer, pick good companies and give them time.
I have given up trying to understand why this stock has the huge swings that it does. Personally think with the market the way it is nothing seems to make sense. I have noticed there does not seem to be all the activity on this message board and therefore I don't think this stock seems to have the day traders as much. I could be wrong. But personally I could not find why this stock dropped from the $82 price that it was. I have found that they always seem to be positive reviews on their slot machines where they win awards and they always have positive financials. I think this is a stock that is a long term investment. If someone has the answer on why we swing the way we do I would live to hear it.
I also believe it is a strong buy at these prices. I have a small position of 300 shares @ $ 64.45 avg and looking to add on any further price dips
Sentiment: Strong Buy
Huge volatility with $2 price swings day to day. BYI reported 3rd quarter 2014 earnings of $1.10 per share. This beat 2nd quarter by $0.04 and beat last year's 3rd quarter results by 18.28%. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.
Sentiment: Strong Buy
They have been moving into online gaming for over a year now, and this was a factor in the Shuffle buy.
Mostly Europe for real money, but some US pretend money and one client on Facebook.
Can you provide reasons, articles, statistics or anything besides the usual..."everybodys gambling now, dude!" I'm not flaming you but we have far too many one sentence tpredictions that anyone who can read as balance sheet would laugh at. In fact, abd again Im not flaming you, when anyone gives a comment like that it shows they do not own very much of the stock, most often thru their mutuel fund because anyone with even a measly 10 grand in this co. could give me several good reasons to buy this. I because I am not in the mood will give you 3....Shufflemaster, their management and the innovative games they have come out with, they already control the live shuffling market and management is not afraid to take risks. I havent been to a casino in over a year. I used to be a vegas dealer. So I know what I am seeing. And let me tell you, the electronic gaming thatmachines that let you bet up to 10,000 dollars on a roll of the dice at craps is telling me that the future is just beginning for slot and gaming machine makers. Think sports....what could they possibly do in the sports world and who is in the position to buy almost anyone out that comes out with anything better than we have. I can actually see a day coming when you can go into a casino and bet on how many people (over or under) are in all the casinos in a particular state, or how many twitters or emails the President will get this week. Every sporting event will no longer need a human to take the action....in legal places anyway. Even betting on the stock share price of comapnies themselves might be able to be done in a casino so stock market players dont feel like they are really gambling. Its going to be unreal what comes out in the next 5 years. And naturally they are almost always in the black!
Target prices mean nothing. Analysts are constantly moving their prices down as stocks fall and move them up as stocks rise. You need to understand the ability of the company to grow its underlying earnings in order to project a price. My 2 year price target is $100-120. By then, hopefully China fears have blown over, acquisition accretion grows, Japan legalizes gambling, debt is lowered, more states legalize gambling. In the meantime, don't be surprised if it falls to $50.
I thought the target price was 87. Yahoo has it at 77. Considering we were at 82 I don't understand this huge drop and how the target price keeps changing and is now lower.
Trying to understand this drop in price. Little to no news on the company, nothing on message boards, etc. On 5/1/2014, BYI reported 3rd quarter 2014 earnings of $1.10 per share and beat last year's 3rd quarter results by 18.28%.
It could drop a little further. It is all a game. Downgrade to sell from JP Morgan means they are in on the game. Their price target was in the $70's?!? Everybody else upgraded to buy or had positive remarks including Citi, Stifel Nicolaus, Brean, etc.
Again, we aren't definitely at a bottom. The sign would probably be an upgrade from JP Morgan. I don't know. Good luck to all.
This is a great long term investment. And can become even better...think of the possibilities if gaming is approved in JAPAN. This market is expected to be second only to Macau.
not to mention I think of the last 5 analyst ratings or P/T on listed on ARN'S sight there were at least 4 buys and 4 of 5 of the p/t were at or above where the stock is now. I think the highest p/t was $87. If I remember all that correctly.