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Strategies & Market Trends : 50% Gains Investing

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To: Dale Baker who wrote (417)1/20/1998 10:46:00 AM
From: jgideonRead Replies (2) of 118717
 
SLOT does not seem to be reacting to the excellent
earnings reported last week. The EPS estimates seem
to show that the EPS came in only a couple pennies over
estimates. Didn't the analysts revise downward after the
Dec warning?

I suppose this is a credibility / belief issue
here. The warning added more risk to the stock, even
if they later did make up for any potential shortfall.
The street loves predictable consistency. Still, to
drop it by 1/3 does seem an over-reaction.

If SLOT had 50% revenue rise and 100% EPS rise, why are
the 98-99 earnings predicted at only 15% growth. Are these
new linked progressives just a short term gain, which
will be hard to repeat with a new game next year? What
PE seems reasonable to you? Breaking $90 this year seems
to suggest something near 20. It's about 16.3 now.

The next 2 quarterly comparisons look very easy to beat
by impressive margins, given the last 2 quarters results.
With relatively secure earnings growth, and a possible PE
expansion, this is a stock to consider. I'll have a look
at the SLOT thread.

jg
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