This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Casino Services Stocks to Play

Stocks in this article: SHFL BYI WMS GPIC EGT

NEW YORK ( TheStreet) - Shuffle Master (SHFL), Bally Technologies (BYI - Get Report), WMS Industries (WMS), Gaming Partners International (GPIC - Get Report) and Entertainment Gaming Asia (EGT - Get Report) are five casino services stocks with up to 40% upside, according to analysts' 12-month price targets.

These companies provide gaming equipment and products to casinos, hotels and resorts. The products supplied are both non-consumable and consumable. Non-consumable products such as gaming chips, gaming furniture, and table accessories have a useful life of several years. Consumable products such as table layouts, cards, and dice represent recurring revenue for the companies.

Revenue growth for these companies depends on the spending plans of casino operators and new casino openings. However, the economic slowdown in the US has taken its toll on casinos. To offset this downturn, casino operators are looking for lucrative growth avenues, especially the Pan-Asian markets (Macau and Singapore).

Casino revenue in Macau, the world's biggest gaming market, rose 48% in March to $2.51 billion, the Macau government revealed recently. Growth comes on the back of a solid 2010, during which Macau witnessed 65% year-over-year growth, beating analyst forecast. Aaron Fischer, head of Asian consumer & gaming research at CLSA Asia Pacific Markets, has recommended a buy on the sector as he expects a growth of 25%-30% during the next two years.

Singapore, on the other hand is witnessing tremendous growth within just one year of the government opening the region to the gaming industry. According to a report from PricewaterhouseCoopers, Singapore is set to overtake South Korea and Australia this year, to become the second-largest Asia-Pacific casino market. PwC estimates Singapore's casino gaming market at $2.8 billion in 2010, which is forecast to grow to $5.5 billion in 2011 and $8.3 billion by 2014.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs