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IGT a Good Bet

NEW YORK – As reported by the Motley Fool: "Here's the deal. As we discussed last month, International Game Technology (NYSE: IGT) shares are well off last year's highs of above $47. Currently, the stock is trading at around $26. That's about a 6% jump following the slot king's second-quarter earnings report.

"…The key here is timing. Slot sales had previously accelerated because of the rapid industry-wide replacement of old slots with new coinless ticket-in/ticket-out (TITO)-capable machines. But with a slowdown in replacement sales and the wait for anticipated sales to materialize in new gaming markets in Pennsylvania and the UK, and after expanded sales to tribal-owned casinos in California, product sales have hit a lull.

"…That said, the bottom line is that IGT is responsible for more two-thirds of all slot machines in play. The lull is temporary, and the sales of new slots will come in the UK, Macau, Pennsylvania, Florida, and California, and as new states follow suit

"…So no, the numbers presented here aren't pretty. But as a forward-looking investor, I believe that IGT's stock presents an opportunity to own what I consider a tip-top player in a growth industry at an attractive price."

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