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Strategies & Market Trends : Value Investing

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To: James Clarke who wrote (8952)11/15/1999 2:09:00 PM
From: Paul Senior  Read Replies (3) of 78611
 
Hi Jim. Taking a little profit in SLOT. Transferring funds to J.

To me, business prospects for Anchor Gaming (SLOT) look so much better than for Jackpot Enterprises (J). Anchor Gaming seems to have a future with their programming, casinos, lottery biz. Jackpot, being a route servicer primarily, is dull and apparently in a very no-growth business.

However, J's market cap ($72.7M) is almost equal to its cash/short-term investments ($67.7M). Here again then is the real risk that the money which management will invest, will be invested poorly. Stock near its stated book value. There's no LTD. Company is generally profitable, and stock usually sells for higher psr and p/e than currently. Looks like J might be a possibility for value investors.

Paul
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