Tech World: International Game Technology
March 25, 2008
International Game Technology (IGT) is a global company specializing in the design, manufacture and marketing of computerized gaming equipment, network systems, licensing and services. The company derives its revenue from the distribution of electronic gaming equipment and network systems, related services and licensing of intellectual property. IGT operates in two segments: North America and International. North America includes the company''s operations in the United States and Canada. Recently International Game Technology acquired Digideal Corporation.
The company is the preeminent supplier of gaming products to the world, maintaining a wide array of entertainment inspired gaming product lines and targeting gaming markets in all legal jurisdictions worldwide. They continue to provide quality gaming products at competitive prices, designed to increase the potential for operator profits by serving players better.
The North America Division encompasses their operations in both the US and Canada, and comprised 77 percent of consolidated revenues in fiscal 2007 and 79 percent in 2006 and 2005. The International Division oversees the company’s efforts in all other markets including Asia, Australia, New Zealand, Europe, Japan, Latin America, Russia, South Africa, and the UK. International comprised 23 percent of consolidated revenues in fiscal 2007 and 21 percent in 2006 and 2005.
IGT is solid fundamentally with expanding operating margins and very attractive return on equity. The latest earnings came in at 36 cents per share, representing a healthy increase over the same quarter the previous year.
This stock is in a solid uptrend, trading well above its 200-day moving average and is in a distinct Elliott Wave-4 buy formation, projecting gains into the $54 per share by mid-June. The company does have a very liquid options market and also provides LEAPS if the options strategist wants to take a longer-term approach.
Figure 1: Daily Elliott Wave-4 Buy Pattern for International Game Technology
(Source: Profit Source)
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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