Scientific Games an Instant Winner in China

07/01/08 - 04:32 PM EDT

Patrick Schultz

The stock of Scientific Games has performed well over the past few months and is particularly impressive given the dismal state of the overall gaming sector. With the weak domestic environment, most gaming stocks in the group are hitting new lows and look to continue their downward path.

Shares of Scientific Games hit a near-term low of $17.03 on March 11 and have run 70% since. This compares with abysmal returns during the same time frame of Las Vegas Sands(LVS Quote - Cramer on LVS - Stock Picks), down 40%; MGM Mirage(MGM Quote - Cramer on MGM - Stock Picks), down 43%; International Game Technology(IGT Quote - Cramer on IGT - Stock Picks), down 45%; and Boyd Gaming(BYD Quote - Cramer on BYD - Stock Picks), down 35%.

So next time you see these instant lottery games at your local deli, instead of buying tickets to "scratch and lose" your money, consider buying a few shares of Scientific Games to profit.

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Patrick Schultz is a research associate at TheStreet.com. He has previously obtained securities licenses under the NASD's Series 7, Series 24, Series 52 and Series 63 exams and has worked in the financial markets on various trading desks in addition to trading for his own account. Schultz holds a bachelor's degree in applied economics from Cornell University.
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