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 8, 2001

IGT established a new high of $57.25 yesterday, as the stock continues to offer momentum investors one of their limited options in this market. IGT did loose a little bit of its impetus today. That said, the stock's impressive uptrend is still intact. However, the RSI is indicating that the stock is a bit overbought in the short term. Granted, IGT does have a habit of becoming extremely overbought, according to the RSI indicator, before pulling back. A good buying opportunity may present itself if IGT pulls back to the 10-DMA, which is just slightly above $55.00, and bounces. If today's mild pullback turns out to be a one day aberration and IGT establishes a new high tomorrow above $57.25, accompanied by volume over 600,000 shares, the stock could easily be off to the races again next week. The MACD, OBV and Money Flow continue to look impressive and point towards more gains for IGT.

Picked on February 20th @ $53.52
Change since picked +2.93
Stop Loss @ $54.75

March 6, 2001

Value investing in the technology sector was the dominant theme of the day. However, this did not stop momentum traders from continuing to express interest in IGT. The stock of this leader in the casino gaming equipment business was bolstered by some bullish comments from Robertson Stephens, which has raised its earnings forecast for fiscal 2001 to $2.60 and to $3.00 for 2002. Previous estimates were calling for profits of $2.55 and $2.85, respectfully. The research firm added that the stock could drive past $70.00 over the next 24 months. Earnings estimate increases are exceedingly rare these days and IGT has been partially rewarded for its ability to grow during these difficult economic times. IGT ignored the late day profit taking and closed right at its newly established all-time high of $56.59. This fact means that there is an absence of overhead resistance, and a positive open tomorrow could easily result in an extension of the stock's gains. The MACD survived a test and is now pointing towards higher prices. The OBV and Money Flow are noticeably strong and also point towards an extension of the rally. Please note that we have been able to raise our stop to $54.75. Momentum traders may want to continue adding positions as long as IGT can stay above the support offered by the 5-DMA of $54.88.

Picked on February 20th @ $53.52
Change since picked +3.07
Stop Loss @ $54.75

March 4, 2001

IGT is a dominating presence in the casino world. The company has long been the leader in the design and manufacture of numerous electronic casino games and is best known for its innovative slot machines. IGT has also developed several management systems that help casinos keep track of accounting, play rates and other systems that speed up cash transactions. Everything that IGT does is designed to keep casino patrons happy, stimulated and plunking more cash into machines. IGT is expected to post profits of $2.46 a share for the fiscal year of 2001, which ends in September. If IGT hits these estimates, the company will have increased their profits more than 39% over its 2000 earnings. This type of growth from a major company is exceedingly rare these days. Consequently, investors have been accumulating shares of IGT ever since September. IGT will report the results of their most recent quarter on April 19th. IGT is expected to show profits of $0.62 a share, which would be a huge increase over $0.34 a share the same quarter a year ago. IGT is also close to a price that has historically resulted in a split announcement. IGT's last three 2:1 splits, all in the early 90's, occurred when the stock was trading between $55.25 and $61.38. IGT weathered last week's tumultuous market quite well. Resistance at the 52-week high of $55.50 remains within striking distance. We remain comfortable adding positions in IGT's stock as long as it stays above the trend line support of $53.00. Momentum traders may want to jump on board if IGT can establish a new high with midday volume over 300,000 shares. The MACD is perilously close to triggering a sell signal, however, a positive move for the stock on Monday would relieve this problem. Otherwise, the very strong Money Flow and OBV point towards continued gains over the intermediate term.

Picked on February 20th @ $53.52
Change since picked +0.32
Stop Loss @ $49.50