- Bear Stearns notes that in short, they think the quarter was good enough in investors eyes, with some reason for pause (printed product revenue deceleration & margin softness). They believe the high short interest (~15-17% of float including the Perelman shares) and the in line result may promote a short squeeze tomorrow. Ultimately, they think the shares will react more to management's commentary on today's call than the 1Q07 result, as they await updates regarding the various growth initiatives (China - Welfare Lottery, Global Draw, Germany, Mexico instant ticket).
- JP Morgan think the stock should react positively: Recently, negative sentiment has
dominated due to skepticism about China and NT EPS. 1Q results prove these concerns wrong. SGMS reminds them of WMS 12 months ago, when after disappointing investors for several qtrs even small positives caused out-performance in the shares. However, SGMS' recent entry into China and accretive acquisition of OGT are potentially very significant. Reiterates Overweight.
Notablecalls: It sure looks like the Italy JV made the qtr. Is the $12 mln run rate sustainable? I suspect that will be one of the main questions on the call. Also, the chart looks good.
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