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

March 1, 2001

IGT held fast during some vigorous selling in the early going today. IGT has enjoyed a substantial rally since September. Despite this move, IGT is currently trading with a P/E of 25.21, which is a true value considering the company is expected to grow its earnings by 36.62% this year. IGT strong stock price is near levels that have previously resulted in a split announcement. This fact is probably another reason why current shareholders are reluctant to sell during the market's gyrations. If IGT can establish a new high above $55.50 with decent first hour trading volume over 200,000 shares. This scenario may create a good entry opportunity, especially if today's late market rally has any follow through tomorrow. Another possible entry point would present itself if IGT pulls back and bounces off trendline support of $53.00. Keep an eye on the MACD, which continues to reside in positive territory but has slowed its ascent. If this indicator issues a sell signal, we would hold off on adding new positions. On the plus side, the RSI is giving the stock a little room before it becomes overbought.

Picked on February 20th @ $53.52
Change since picked +0.69
Stop Loss @ $49.50

February 27, 2001

We have not yet hit the jackpot with this play, but good luck finding a stock with the word technology in its name that is performing better than IGT. The company has long been the leader in the invention, manufacture and management of computerized casino games. Moreover, the company is entering a growth phase that should result in an increase in profits of more than 36% for 2001 versus the 2000. This type of growth is rare in today's market and IGT's shares have been under accumulation for the past several months. The stock has good trendline support at $53.00. New positions could be added as long as the stock holds this support. Momentum investors may be interested in jumping on board if IGT can establish another new high above $55.50. This trade would be more tempting if it is accompanied by first hour trading volume over 200,000 shares. Three of our favorite technical indicators, the MACD, OBV and Money Flow all point towards continued gains in the share price of IGT.

Picked on February 20th @ $53.52
Change since picked +0.98
Stop Loss @ $49.50

February 25, 2001

IGT is a global leader in the design, manufacture and management of a multitude of computerized casino games. One look at the impressive price trend of IGT's stock since it broke out of a base in the high teens just about a year ago, leads one to believe that IGT's shareholders are doing much better than people who play IGT's games. It is certainly impressive that IGT has been able to appreciate in the face of this lengthy stock market malaise. IGT is expected to grow its earnings more than 35% during fiscal 2001. If IGT achieves these expected earnings, it will put the company in a very small and select group of publicly traded issues that are enjoying substantial growth. IGT is fast approaching a share price that has historically resulted in a 2:1 split announcement. The likelihood of a split increases every day that IGT continues to approach $60.00. A possible buy point for momentum traders would be if IGT can trade above $54.00, accompanied by midday trading volume of more than 200,000 shares. Another good entry point could come tomorrow if IGT can close in new high territory on volume over 600,000 shares by the close. In the event of a pullback, we would hold off on adding new positions if IGT falls below its 10-DMA of $52.28. Technical indicators such as the MACD, OBV and Money Flow all point towards a continuation of the solid long term up trend.

Picked on February 20th @ $53.52
Change since picked +0.17
Stop Loss @ $49.50