AGEM
Exchange: Stock Price Percent Change Index
Symbol At Month End Prior Prior Contri-
(Currency) Nov-09 Oct-09 Nov-08 Period Year bution
Ainsworth Game ASX: AGI (AU$) 0.19 0.17 0.08 15.15 137.50 0.04
Technology
Aristocrat ASX: ALL (AU$) 4.03 4.52 3.93 (10.84) 2.54 (1.11)
Technologies
Astro Corp. Taiwan: 3064 73.20 68.10 37.00 7.49 97.84 0.07
(NT$)
Bally
Technologies NYSE: BYI (US$) 41.53 39.39 18.47 5.43 124.85 0.66
Elixir Gaming AMEX: EGT (US$) 0.28 0.28 0.05 - 460.00 -
Technologies
GameTech Nasdaq: GMTC
International (US$) 1.46 1.33 1.12 9.77 30.36 0.01
Gaming Partners Nasdaq: GPIC
International (US$) 5.30 4.51 5.34 17.52 (0.75) 0.04
Global Cash NYSE: GCA (US$) 7.44 6.33 3.09 17.54 140.78 0.49
Access
IGT NYSE: IGT (US$) 18.89 17.84 10.15 5.89 86.11 1.77
INTRALOT S.A. ATHEX: INLOT 3.68 4.37 3.66 (15.79) 0.55 (0.68)
(EUR)
Konami NYSE: KNM (US$) 16.51 18.54 22.83 (10.95) (27.68) (1.30)
Lottomatica MILAN: LTO.MI
(GTECH) (EUR) 13.34 14.52 18.60 (8.13) (28.28) (1.09)
Multimedia Nasdaq: MGAM 5.49 4.91 2.30 11.81 138.70 0.09
Games (US$)
Shuffle Nasdaq: SHFL 8.17 7.81 4.28 4.61 90.89 0.11
Master (US$)
Transact Nasdaq: TACT 6.21 5.67 5.34 9.52 16.29 0.03
Technologies (US$)
Wells-Gardner AMEX: WGA 2.41 1.92 0.69 25.52 249.28 0.03
Electronics (US$)
WMS Industries NYSE: WMS 38.88 39.98 24.65 (2.75) 57.73 (0.34)
(US$)
Change in
Index Value (1.16)
AGEM: October
2009 105.88
AGEM:
November
2009 104.73
ANALYSIS PROVIDED BY UNION GAMING GROUP
Broader indices continued to push higher in November despite mixed economic
consumption data. Consensus trades continue to work such as gold, crude
oil, and betting against a weak dollar. Against that backdrop, the AGEM
Index was relatively flat during the month largely mirroring news flow and
sentiment throughout the gaming and related sectors. Importantly the Global
Gaming Expo (G2E) -- the suppliers' major gaming show every year -- took
place during the month with better than anticipated delegate turnout.
While products across the show floor were compelling, technological
advances were largely understood by gaming investors going into the show,
so sentiment about the publicly traded gaming suppliers was unchanged
following the event. There was also no incremental evidence that casinos'
capital expenditure budgets were loosening enough to foster the beginning
of an important replacement cycle -- despite evident advancements in Server
Based Gaming (SBG).
On the positive event front, Ohio finally passed casino gaming in its four
largest cities via voter referendum, raising questions about the ultimate
outcome of a delayed referendum in the state for slots at racetracks. We
suspect, however, that Kentucky has never had greater propensity than now
to expand gaming in some format given the geographically contiguous nature
of the two states. Major gaming markets such as Macau and Las Vegas
experienced relatively positive events during the month, helping investor
sentiment on the overall gaming sector. For Macau, material revenue growth
continued, while Las Vegas reported lagging September data finally
underscoring visitation growth, and declines in unemployment, while our own
analysis showed Las Vegas locals market stabilization during the period.
Other highlights included Harrah's Entertainment positioning to acquire
Planet Hollywood in Las Vegas, signaling an important trough in cash flow
and valuation for some investors in the sector, while the federal
government delayed the enforcement of online gaming rules in the U.S.,
perhaps foreshadowing the ultimate passage of favorable internet gaming
regulation. Positive sentiment was offset to a large degree by Dubai
World's potential default as investors tried to connect the dots to MGM
MIRAGE's CityCenter risk during the period, which we are less concerned
about.
The AGEM Index
The Association of Gaming Equipment Manufacturers (AGEM) produces the
monthly AGEM Index that comprises 17 global gaming suppliers throughout the
world. A total of 12 suppliers are based in the United States and are
listed on the NYSE, Nasdaq or AMEX, while two trade on the Australian
exchange, one supplier trades on the Athens exchange, one trade on the
Milan exchange, and another trades on the Taiwan OTC exchange. The index is
computed based on the month-end stock price (adjusted for dividends and
splits) of each company and weighted based on approximation of market
capitalization. Market capitalizations for manufacturers trading on foreign
exchanges have been converted to US dollar equivalents as of month-end for
comparability purposes. The AGEM Index is based on a 100-point value as of
January 2005.
About AGEM
AGEM is an international trade association representing manufacturers and
suppliers of electronic gaming devices, systems, table games, key
components and support products and services for the gaming industry. The
Association works to further the interests of gaming equipment suppliers
throughout the world. Through political action, tradeshow partnerships,
information dissemination and good corporate citizenship, the members of
AGEM work together to create benefits for every company within the
organization. Together, AGEM has assisted regulatory commissions and
participated in the legislative process to solve problems and create a
positive business environment.
AGEM Membership Roster
The current AGEM membership roster, 81 strong, is a who's who of the
supplier segment of the global gaming industry: AGEM Gold Members:
Aristocrat Technologies, Aruze Gaming America, Austrian Gaming Industries,
Bally Technologies, GTECH/Atronic/Spielo, International Game Technology
(IGT), INTRALOT S.A., Konami Gaming and WMS Gaming. AGEM Silver Members: AC
Coin & Slot, Action Gaming, Casino Technology, Interblock USA, JCM Global,
MEI, Multimedia Games, Octavian International, Shuffle Master, Suzo-Happ
Group, TCSJohnHuxley and Wells-Gardner Electronics. AGEM Bronze Members:
Ainsworth Game Technology, Astro Corp., Cadillac Jack, Cammegh Limited,
CashCode / Crane Payment Solutions, Diamond Game, Digital Display Group,
Euro Games Technology (EGT), GameTech International, Gaming Support,
Incredible Technologies, Jumbo Technology, KGM Gaming, MCA Processing,
Modern Gaming, Rocket Gaming Systems and Summit Gaming. AGEM Associate
Members: CMYK Creative, Cole Industries, Cybertec Gaming Systems,
DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input
Systems, FutureLogic, Gaming Partners International, Gary Platt
Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand
Products, Greenberg Traurig LLP, Howard & Howard, IdeaWork Studios, IDX,
Intel, IPS, James Industries, Kreller Group, KSK, Lewis & Roca, Masterpiece
Advertising, MC2, Mikohn Signs and Graphics, Money Controls, Nanoptix,
Paokai Electronic Enterprise Co., Proforma GPS, Regulatory Management
Counselors, Sanmina-SCI, Strategy9, Talent Associates, Tgraphics/Outpost
Productions, The Bright Group, 3M Touch Systems, Tournament One, TMX, Trade
Show Fabrications, TransAct Technologies, Veridocs, Wrex Products and Young
Electric Sign Company (YESCO).
AGEM Index and Overview
The AGEM index and overview is prepared by Applied Analysis (AA). AA is a
Nevada-based advisory services firm providing a wide range of consultation
services for public and private entities. The company utilizes extensive
experience in economics, information technology and finance to provide a
wide range of services, including urban economic consulting, financial
advisory services, market analysis, public policy analysis, hospitality
industry and gaming consulting and information system and technology
consulting.
Industry Analysis
Industry Analysis is prepared by Union Gaming Group (UGG). UGG is an
independent research firm, government and industry advisor, focusing on the
global gaming business. UGG provides research, access and advisory services
and offers varying levels of research products and services, which
capitalize on UGG's relationships with corporate managements, governments,
and other parties relevant to the global gaming business.
Contact Information: Contact: Marcus Prater AGEM Executive Director (702) 812-6932