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Keith added BYI to our Real-Time Positions at $48.34.  BYI has a bullish formation with TRADE support of $46.91 and can trade up to $51.31 in the TRADE immediate-term.

After our meetings in Vegas last week and touring the the G2E show this week, we are positive about BYI's existing content and impact and its development pipeline.  Management was very bullish about their new content and also about the outlook for all segments of their business. 

This historically reel spinning slot supplier displayed mostly video content at G2E that has apparently been getting great feedback from customers.  Remember that approximately 80% of units shipped  in North America are video and unbeknownst to most investors, BYI’s recent video slot shipments have also been around 80% of its total.  So their video content is already driving higher share recently, and this will likely increase their high teens overall share.  This is not your father’s Bally Gaming.

The stock has done well, certainly relative to its competitors.  However, the valuation is not excessive and forward estimates look like they may need to go higher.  We are not making a call on the September quarter – we’re essentially in-line.  However, we think 2013 estimates might be too low.  Consensus for BYI’s FY2013 is $3.17 and company guidance is $2.95 to $3.30.  Shipments to Western Canada and Illinois in 2013 could exceed expectations and combine with continued market share gains to push earnings toward the higher end of management's guidance and maybe above.

IDEA ALERT:  BUY BYI - BYI2