disasters of the day

From: scerir (scerir@libero.it)
Date: Fri Feb 23 2001 - 14:25:35 MST

The ' 90s turned the average buy-and-hold investors into avid IPO watchers,
seduced by the triple-digit gains (many new issues posted on their very
first day of trading).

Unfortunately, one-fifth of shares that began public trading in the ' 90s
declined more than 90% from their _offering_ price, what big institutional
investors and Wall Street insiders paid before the company went public.

Remember VA Linux Systems? It popped 698% on the first day shares
traded hands. Now shares go for 72% below the _offering_ price.

But, luckily, the legalization of gambling in 48 states (including state
lotteries) and _until recently_ a vigorous economy contributed to the steady
growth of gaming casinos and the companies that make equipment for casinos.
Technological innovations, new products and, to a lesser extent, growth in
Asian markets are also stimulating this industry.

While the gaming industry depends largely on consumers' disposable income,
game designers and manufacturers are well insulated from the effects of a
declining economy, according to David Barteld, a senior research analyst at
Wells Fargo Van Kasper. Barteld suggests that lower casino volumes would
help increase orders for newer, more profitable, one-armed bandits that coax
customers into wagering more for longer periods of time.

The leader in game development and manufacturing is International Game
Technology (nyse: IGT), which has more than 70% market share in the U.S.,
according to Andrew Smith, a research consultant at the American Game

A few years ago game manufacturers fell behind in efforts to retrofit new
technologies to existing casino infrastructure. Smith notes that the trend
toward video-based slot machines began only seven years ago and cashless
technology, only recently. IGT, in particular, according to Barteld, has
since boosted its research and development efforts and is once again at the
top of its game. IGT shares trade at 21 times estimated earnings of $2.51
for 2001.

much more at http://www.forbes.com/2001/02/23/0223sf.html

- scerir

The fall of ancient Rome has evoked many opinions as to the cause.
Some historians attribute at least some of the problem to an individual
named Spikus, a rabble-rouser who convinced Caesar to declare
November 8 as Spikus Worship Day.
[ http://home.jinko.com/dasha/spike/quotes.html ]

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