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Non-Tech : CASINO DATA SYSTEMS (CSDS)

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To: Carlos Ferreira who wrote (11)11/5/1996 2:24:00 PM
From: Martin Plihal   of 15
 
I thought the earnings were quite disappointing. Sales growth has slowed down significantly in the last quarter, and the seamingly healthy EPS was created in large part by the unspecified (but clearly significant) cash settlement they received from IGT. You can find it in the "other income" column. If you take this one time item out of the picture, their EPS was in the range of $0.12 - $0.14, and that is certainly less than I was expecting.
The drop in price, before the earnings were released, was an early warning of things to come.
I believe the stock is probably close to its fair value at current levels. I still believe CSD is a great long term investment.
Just my opinion.
Martin
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