International Game Technology is an operator and manufacturer of computerized casino gaming products and proprietary gaming systems. For the 3 months ended 12/30/00revenues rose 46% to $301.7M. Net income increased 14% to $48.2M. Revenues reflect increased domestic product sales due to the popularity of IGT%s video reel offerings. Net income was partially offset by increased incentives related to higher sales volumes.

February 20, 2001

Do not let the technology word scare you. IGT is the leading innovator, manufacturer and seller of electronic casino games and systems. This stock was a superstar in the early 90s due to the unprecedented growth in new casinos across the country. During that time, IGT split its shares 2:1 four times in a four-year period. Most of these splits were announced when the stock was trading in the $50 to $60 range. Clearly the stock is a split candidate now that its recent rally has placed it back into this price range. IGT has many of the same characteristics that our recently successful plays possess. The most important characteristic is stable and growing earnings. IGT is expected to increase its earnings more than 35 percent over 2000's earnings. What’s more, IGT is trading at a reasonable forward P/E of 22.3, which offers investors some security in a market that is crushing high P/E stocks. IGT soared to a new high of $53.90 on excellent volume of just under a million shares today. A move above this price tomorrow, accompanied by first hour trading volume over 250 K, could be a good entry point for momentum traders. The MACD is positive and took out some resistance today, which suggests that a sustainable move is likely. OBV and Money Flow are also both strong.

Picked on February 20th @ $53.52
Change since picked +0.00
Stop Loss @ $49.50

February 22, 2001

If you watch too much CNBC, you probably think that every stock is in permanent decline. IGT is one stock that is bucking that impression. This leading manufacturer of computerized casino games (traditional slot and video poker machines) and operator of proprietary gaming systems is poised to show strong earnings growth this year. IGT's fiscal year ends in September and analysts expect the company to show profits of $2.40 per share, which would be an increase of $0.63 over last year's EPS. Growth stock investors still have plenty of cash to put to work into stocks that are showing strong fundamental growth. Clearly, IGT's stock price chart reflects that some of this money is being invested in IGT. The stock has been in an up trend since September. Lately, though, there have been a couple of dips due to market volatility that have tested the 50-DMA, which currently resides at $48.13. A move above $54.00 on first hour trading volume over 200,000 tomorrow might prove to be an excellent entry point. Longer term, the MACD, OBV and Money Flow all point towards the likelihood for continued stock price appreciation for this casino industry giant.

Picked on February 20th @ $53.52
Change since picked +0.33
Stop Loss @ $49.50