Shuffle Master Pulls Back

Shuffle Master (SHFL) announced dissapointing earnings yesterday and dropped nearly 10% today. But instead of negative comments from the CEO and analysts both were positive as Shuffle Master tries to integrate new aquisitions and move toward a leasing business model instead of sale. The transition is hitting short term earnings but I believe if you stay with the stock you’ll see the company have consistent earnings in the future.

This stock has been the biggest dissapointment in you Mayor’s portfolio but I think it may be time to add more. Let’s go through the positives.

- Consistent revenue growth (10% this quarter, 20% plus in past two years)

- Growth industry. Lots of casinos are opening in Macau in the next few years and Las Vegas is seeing a surge in construction. This is a huge opportunity for the biggest table maker in the world. Any time you see Three Card Pok