SOURCE: AGEM

October 09, 2009 17:04 ET

Association of Gaming Equipment Manufacturers Releases September 2009 Index

LAS VEGAS, NV--(Marketwire - October 9, 2009) - Investors continued to find strength in global gaming suppliers, raising the majority of the AGEM Index members' stock valuation during the month of September 2009. By the end of September, the AGEM Index posted a value of 116.78, an increase of 5.22 points or 4.7 percent over the prior month. The rise modestly outpaced the Standard & Poor's 500 which managed to close the month with a 3.6-percent increase. On a year-over-year basis, the AGEM Index is up 26.8 percent, regaining territory from the catastrophic declines across equity markets last September following the collapse of Lehman Brothers and the largest single-day point decline in the Dow Jones Industrial Average. The majority of global gaming suppliers are once again seeing year-over-year gains in their stock valuations. Selected positive contributors to the index during the month included: (1) Aristocrat Technologies (ALL), adding 2.23 points to the index with a 13.64-percent increase in its stock valuation; (2) International Game Technology (IGT), contributing 0.87 points to the index driven by a 2.68-percent gain in its stock performance; (3) Shuffle Master (SHFL), up 24.27 percent, adding 0.63 points to the index; (4) WMS Industries contributing 0.61 points to the index driven by a 5.27-percent gain in its stock price; and (5) INTRALOT S.A. (INLOT) adding 0.51 points to the overall index with a 7.05-percent improvement in its stock performance.

Negative contributions to the index were modest but a few selected suppliers on the list included: (1) Bally Technologies (BYI), with a 5.10-percent decline in its stock value, contributing -0.55 points to the index; (2) Lottomatica (LTO) posting -0.08 points to the index based on a 2.42-percent decline in its stock performance; and (3) GameTech International (GMTC) reporting a 10.94-percent drop in its stock valuation contributing -0.01 points to the overall index.

Momentum has continued to flourish since the stock market rally began this spring and a recession declared "very likely over" in September. Nevertheless, the ability for global gaming suppliers to strengthen over the long-term will come from new business in emerging markets and innovation in mature regions.

                                                    Percent
AGEM           Exchange:       Stock Price          Change          Index
                 Symbol       At Month End      Prior    Prior    Contribu-
               (Currency) Sep-08 Aug-08 Sep-07 Period     Year      tion
Ainsworth
 Games          ASX: AGI
 Technology         (AU$)   0.09   0.12   0.36  (21.74)  (75.00)     (0.03)

Aristocrat      ASX: ALL
 Technologies       (AU$)   6.46   5.90  13.90    9.49   (53.53)      0.07

Bally          NYSE: BYI
 Technologies       (US$)  30.28  34.23  35.43  (11.54)  (14.54)     (1.08)

Elixir Gaming  AMEX: EGT
 Technologies       (US$)   0.33   0.42   4.36  (21.43)  (92.43)     (0.05)

GameTech        Nasdaq:
 International GMTC (US$)   2.61   3.89   7.75  (32.90)  (66.32)     (0.06)

Gaming Partners Nasdaq:
 International GPIC (US$)   5.50   5.29   9.25    3.97   (40.54)      0.01

Global Cash    NYSE: GCA
 Access             (US$)   5.06   5.99  10.59  (15.53)  (52.22)     (0.34)

IGT            NYSE: IGT
                    (US$)  17.18  21.43  42.51  (19.83)  (59.59)     (5.66)

Konami         NYSE: KNM
                    (US$)  25.39  30.43  29.64  (16.56)  (14.34)     (3.23)

Lottomatica  MILAN: LTO.MI
 (GTECH)            (EUR)  18.52  21.06  25.35  (12.06)  (26.94)     (3.60)

Multimedia      Nasdaq:
 Games         MGAM (US$)   4.33   5.06   8.52  (14.43)  (49.18)     (0.09)

Progressive
 Gaming         Nasdaq:
 International PGICD (US$)  1.43   0.76   5.00   88.16   (71.40)      0.05

Shuffle Master  Nasdaq:
               SHFL (US$)   5.09   5.02  14.95    1.39   (65.95)      0.02

Transact        Nasdaq:
 Technologies  TACT (US$)   7.96  12.25   6.13  (35.02)   29.85      (0.15)

Wells-Gardner  AMEX: WGA
 Electronics       (US$)    1.03   1.32   2.38  (21.97)  (56.72)     (0.01)

WMS Industries NYSE: WMS
                   (US$)   30.57  33.60  33.10   (9.02)   (7.64)     (0.77)

Change in
 Index Value                                                        (14.92)

AGEM: August 2008                                                   107.12

AGEM: September 2008                                                 92.20

ANALYSIS PROVIDED BY UNION GAMING GROUP

In what is traditionally a strong month in the broader market, September 2009 would be considered textbook with gains across all major indices. Market strength was driven by favorable manufacturing and consumption data supporting the "green-shoots" of recovery notion. Gaming Suppliers' directionally followed yet outperformance of broader markets in September was likely due to a confluence of events. These underscored gaming expansion and operating improvement for the sector while property transactions, capital markets activity, and evidence of Las Vegas stabilization collectively bolstered sentiment for the entire gaming group. We list a number of gaming expansion data points below, yet more importantly for investors' was September's evidence of healthier casino operators which is indicative of a long awaited replacement cycle drawing nearer -- and investors are beginning to 'pay' for this now. Expansion reared its head in various ways: Seminoles signed their FL compact as did the Pomos in CA; Miami-Dade tracks took delivery of slots, Oregon Lottery is adding/replacing slots, Greenbrier got licensed, PA table game expansion progressed, Sands wants more slots in PA, Crown was approved for e-tables, MA gaming looked more probable, MD issued its fist slots license, and Aqueduct racino inched ahead. On the financial front Harrah's continued to chop away at debt with successful exchange offers, Wynn launched its HK IPO at premium valuation, Sugarhouse closed on Philly project financing, Revel AC may be progressing with financing talks, and SJM issued an attractive convert. SHFL beat numbers and we suspect 2010 estimates may prove conservative, Macau posted a record August, evidence of visa restrictions easing, while Harrahs, the Chickasaws, and PENN appeared active on the suitor front (Thistledown, Planet Hollywood, Remington, Lone Star, and Fontainebleau LV). While Taiwan's first county referendum for casinos was voted down the aforementioned momentum was overwhelming. This dynamic has continued into October.

The AGEM Index

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 17 global gaming suppliers throughout the world. A total of 12 suppliers are based in the United States and are listed on the NYSE, Nasdaq or AMEX, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one trade on the Milan exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005.

About AGEM

AGEM is an international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, key components and support products and services for the gaming industry. The Association works to further the interests of gaming equipment suppliers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM has assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AGEM Membership Roster

The current AGEM membership roster, 81 strong, is a who's who of the supplier segment of the global gaming industry: AGEM Gold Members: Aristocrat Technologies, Aruze Gaming America, Austrian Gaming Industries, Bally Technologies, GTECH/Atronic/Spielo, International Game Technology (IGT), INTRALOT S.A., Konami Gaming and WMS Gaming. AGEM Silver Members: AC Coin & Slot, Action Gaming, Casino Technology, Interblock USA, JCM Global, MEI, Multimedia Games, Octavian International, Shuffle Master, Suzo-Happ Group, TCSJohnHuxley and Wells-Gardner Electronics. AGEM Bronze Members: Ainsworth Game Technology, Astro Corp., Cadillac Jack, Cammegh Limited, CashCode / Crane Payment Solutions, Diamond Game, Digital Display Group, Euro Games Technology (EGT), GameTech International, Gaming Support, Incredible Technologies, Jumbo Technology, KGM Gaming, MCA Processing, Modern Gaming, Rocket Gaming Systems and Summit Gaming. AGEM Associate Members: CMYK Creative, Cole Industries, Cybertec Gaming Systems, DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input Systems, FutureLogic, Gaming Partners International, Gary Platt Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand Products, Greenberg Traurig LLP, Howard & Howard, IdeaWork Studios, IDX, Intel, IPS, James Industries, Kreller Group, KSK, Lewis & Roca, Masterpiece Advertising, MC2, Mikohn Signs and Graphics, Money Controls, Nanoptix, Paokai Electronic Enterprise Co., Proforma GPS, Regulatory Management Counselors, Sanmina-SCI, Strategy9, Talent Associates, Tgraphics/Outpost Productions, The Bright Group, 3M Touch Systems, TMX, Tournament One, Trade Show Fabrications, TransAct Technologies, Veridocs, Wrex Products and Young Electric Sign Company (YESCO).

AGEM Index and Overview

The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing a wide range of consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide a wide range of services, including urban economic consulting, financial advisory services, market analysis, public policy analysis, hospitality industry and gaming consulting and information system and technology consulting.

Industry Analysis

Industry Analysis is prepared by Union Gaming Group (UGG). UGG is an independent research firm, government and industry advisor, focusing on the global gaming business. UGG provides research, access and advisory services and offers varying levels of research products and services, which capitalize on UGG's relationships with corporate managements, governments, and other parties relevant to the global gaming business.

Contact Information

  • Contact for AGEM release:
    Marcus Prater
    AGEM Executive Director
    (702) 812-6932
    Email Contact