I took a small position in Shuffle Master today at $18.50 per share. On the heels of bad news this week I think they will bottom out here and start an uptrend in the next 6 months to 1 year. The 52 week price range is $16.50 to $40.75 per share.
The maker of automatic card-shuffling and casino chip sorters said it uncovered an accounting error related to profit recorded on inventory purchased from subsidiary Casinos Austria Research & Development GmbH & Co.
The error resulted in a $1.2 million overstatement of net income for 2006, and the company said it will restate its fourth-quarter and full-year 2006 results.
Shuffle Master also does not expect to file its first-quarter financial report on time, and warned its earnings and revenue results will miss analyst expectations for the first quarter.
Shuffle Master, Inc., through its subsidiaries, engages in the development, manufacture, sale, and marketing of technology and entertainment-based products for the gaming industry. It operates in two segments, Utility Products and Entertainment Products. The Utility Products segment offers automatic card shufflers for use with card table games, including batch and continuous shufflers, and single deck/double deck shuffler, as well as chip sorting machines for roulette. It also develops other products to automatically gather data and to enable casinos to track table game players, such as Automated Bloodhound and Table iD. In addition, this segment leases shufflers. The Entertainment Products segment develops and markets a range of proprietary table game entertainment content to casinos and other licensed operators. It offers live proprietary poker, blackjack, baccarat, and pai gow poker-based table games and side bets, as well as various electronic content delivery system platforms, including Table Master, Vegas Star, Rapid Table Games, and wireless Casino On Demand. The company sells its products to casinos and other gaming establishments through direct sales force and distributors worldwide. As of October 31, 2006, the company installed approximately 22,000 shufflers, 4,000 table games, and 21,000 electronic wagering seats. Shuffle Master was founded in 1983 and is headquartered in Las Vegas, Nevada.
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