Morningstar article on Gaming Companies

[deathtoau]

A dose of reality for those looking to invest in gaming companies.

Betting on Poker's Popularity (http://biz.yahoo.com/ms/040130/103007_1.html)

[bigpooch]

When would you suggest shorting any of these?

[MaxPower]

I was just about to post a link to that article. I think it is a decent article.

I particularly like these two quotes:

But investing, like poker, requires patience. You want to wait until the odds are heavily in your favor, then bet big.

In the case of gaming stocks currently, we'd fold this hand and wait for a better one.

I often think about investing like this. I only want to invest in pocket aces. If a stock is a pair of Kings, I'll pass on it. The difficult part is figuring out which ones are pocket aces.

I own stock in Shufflemaster and I believe that they are positioned to profit from the poker boom (via the single deck shufflers) as well as the spread of casino gambling. The company has reasonable valuation unlike IGT.