Paul, I like and own IGT in my income portfolio. It is actually one of the few stocks I use for buy and write. I actually use secured put writing, and if the stock is put, then do a buy and write on it. It has been awfully profitable for me over the years. But it is very big and has such a major market share that, IMHO, IGT cannot grow much faster than the demand for casino games in the future. I expect that to be solid and fairly dependable, but not dazzling. So, I recommend it as a core holding, but not in your pizzazz portfolio.
I have long been agonizing over Casino Data Systems. I was one of the naysayers when the stock was in the 20s and about to put IGT out of business. Now that they are losing money, I am intrigued. The main problems with CSDS are 1. it started with a bogus idea. Gamblers do not use machines based upon their music or graphics functionality. They play games they understand where they think they have a chance to win. And, #2, IGT has cut their legs off with its partnership with Innovative Gaming (IGCA). IGCA does the CSDS schtick better than CSDS and puts in some IGT stuff to pull in the long time players. This combo may leave CSDS out in the cold.
So, I am buying IGCA, which has just geared up its sales and, for now, avoiding CSDS. But at $5 or so, and lots of cash, I think CSDS might be of interest for a gamble if treated like a LEAPs option. All they need is one good game to pop to double digits again. I am not doing it right now, but I may at some point in the future. I fear CSDS will end up on the trash heap with Bally's (now Alliance), WMS, and all the others who have dared to challenge the IGT monopoly. But, since trash heap already seems to be in their stock price, it might be worth a fling with mad money. MB |
