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SHFL reports its Q3 after the close today. The stock is acting like a major miss is imminent. SHFL priced its secondary offering on July 25th, right at the end of its fiscal quarter. After missing most of its quarters over the past couple of years, the company has a credibility issue. I find it hard to believe that management would punt on its first quarter out of gate following the secondary as they attempt to restore faith. With 16% of the float short, any number close to the $0.10 consensus estimate should result in some nice upside action. As I’ve written about, I have some serious longer term concerns but there are times to differentiate between a trade and trend.

SHFL management needs to restore credibility