International Game Technology Cited as Mistake of 2008
Upon reviewing recommendations given during the past year, a major investment advice site has included International Game Technology (IGT: 15.02 0.00%) among its biggest mistakes.
Morningstar.com found that IGT was not the bargain hoped for, as the company lost better than two-thirds value over the last twelve months.
Morningstar had been attracted to IGT’s strong commitment to research and development, but found that the slot manufacturer failed to protect its market share from competitors.
The company, a Reno-based slot machine producer and casino supplier, lost out by not beating other companies in getting its new games quickly to the market. Economic conditions also caused demand for new products to drop, as casinos canceled expansions and new construction.
Morningstar dropped its business risk rating of IGT to a very high level of uncertainty. IGT has announced forecasts of a rough year ahead, although, if the company can weather the storm, the investment in new technologies may still be its saving grace.
Join the forum discussion of this news story - (1) PostsRelated posts:
