investora2z Sunday, 11/17/13 06:11:56 AM Re: None Post # of 237 There have been a few articles recommending to buy IGT, especially after the recent correction in the stock. The results were below estimates, though that was mainly caused by an adjustment needed to set aside more money for income taxes. As mentioned in an article on SA, adjusted earnings per share from continuing operations are up 22% to $1.27 if this factor is excluded. Over the years, the fundamentals have improved consistently. The topline has been growing at a decent pace, and even the bottomline has increased consistently. On a ttm basis, the revenues are $2.34 billion and the net income is $272 million. The deal with Caesars Entertainment (CZR) to supply it with 7,000 video poker terminals is yet to have its full effect on the numbers. The performance of Double Down may also continue to bolster the growth in topline as the social casino segment is expected to grow fast over the next few years. Double Down's online gaming revenue went up 74% to $61 million, and the average number of daily users rose 20% to more than 1.6 million. The social revenues continued to grow at a robust pace, and were up 151% over the past year. The legalization of online gambling in more and more states will only increase the potential. The space is attracting competition, with big and small players like Caesars (CZR) and MGT Capital Investments (MGT) making investments. MGT acquired Avcom a few days ago. Online gambling with real money will lead to good growth in the future, especially as the use of mobile internet increases. The valuations are reasonable as the trailing P/E is 17 and forward P/E is 12.65. This indicates expectations of earnings growth over the next few years. Even the PEG is below one and the price to sales is below 2. The repurchase program may help support the price, but the company needs to keep a watch on the level of leverage.