NEW BEARISH Plays
Bally Technologies - BYI - close: 37.83 change: -0.90 stop: 40.05
Bally Technologies, Inc., incorporated in September 1968, is a diversified, worldwide gaming company that designs, manufactures, operates and distributes slot and video machines to a global gaming industry that includes casino, racino, video lottery, central determination and Class II markets. It also designs, integrates and sells highly specialized computerized monitoring systems that provide casinos with networked accounting and security services for their gaming machines with more than 300,000 game monitoring units installed worldwide at more than 225 locations. Based in Las Vegas, the Company conducts its machine and systems operations, and operates Rainbow Casino, a 35,000-square foot dockside location in Vicksburg, Mississippi, which has approximately 12 table games and 900 gaming devices. (source: company press release or website)
Why We Like It:
This casino games maker has been under performing the market and its peers the last few weeks. The company's latest earnings report failed to impress and investors have started selling into strength. Shares just closed under their simple 200-dma and exponential 200-dma after a week of consolidating sideways near this technical support.
I am suggesting traders open bearish positions now. Our first target to take profits is at $35.05 since the $35.00 level has been support in the past. Our second target is $32.00. More aggressive traders could aim for the $30 level.
FYI: This should be considered an aggressive trade. The most recent data available listed short interest at nearly 13% of the 52 million-share float. That is above average and if BYI makes a sudden move higher it raises the risk of a short squeeze.
Suggested Position: SHORT BYI stock @ 37.83(?)
Entry on March xx at $xx.xx
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on March 15th, 2010