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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (5919)	2/1/1999 12:12:00 PM
From: Ron Bower	Respond to of 78826

Vacationing in Vegas for a few days. Bought SHFL this morning. Played BJ with a man from Minnesota in the Gold Strike Casino in Jean NV. (Circus Circus owned casino) The table we were playing at had a 6 deck Shuffle Master machine they were trying out. If it worked out, they would continue the lease and it could develop into a major contract with CC. While sitting there, I got into a conversation with the man next to me. We began discussing the machine and it turns out he is from Minnesota and very familiar with the company. He tells me that the company is being bought out by Bally and the announcement should come out soon. Definitely got my interest. Turns out his son-in-law works for the company. I talked further with the pit people about the machine and they thought they would be keeping the machine because it definitely sped up the game (more hands, more profit). The company also has a game called 'Let It Ride' that is gaining popularity. The company replaced the CEO a few months ago. Company has been buying back shares. The most recent news item is the VP of Sales for Bally just became the VP of Sales for SHFL. The price has not risen, but there have been some large block buys this week. SHFL has a lawsuit against it that is to be settled soon. If there is a buyout in the works, it may depend on the outcome of the suit. The company has issued PR confidence they will win. I researched and decided it was a decent buy based on fundamentals without the 'street rumor' and a very good buy if the rumor is right. Should know in a few weeks. FWIW, Ron