ShuffleMaster (SHFL)

Company

"Shuffle Master, Inc. is a gaming supply company specializing in providing its casino customers with improved profitability, productivity and security, as well as popular cutting-edge gaming entertainment content, through value-add products in four distinct categories: Utility Products which includes automatic card shuffler, roulette chip sorters and intelligent table system modules, Proprietary Table Games which include live table game tournaments, Electronic Table Systems which include electronic multi-player table game platforms, and Electronic Gaming Machines which include traditional video slot machines for select markets. The Company is included in the S&P Smallcap 600 Index. " (company website)

shfl(3-1)
SHFL 4-month chart
shfl(3-1)_1yr
SHFL 1-year chart

Buy

ShuffleMaster is definitely a niche company. Who knew automatic card shufflers could be so profitable? SHFL surprised the market when it reported earnings this month 3¢ above Expectations. Since the bottom in March, SHFL has been on a sharp uptrend. Yesterday was another high-volume up-day, enough to keep the PPO line above the signal line. I'm betting on further price advances now that profit-taking after the big post-earnings jump has played out.

  • Percentage price oscillator (PPO) — diverged sharply after earnings surprise
  • Volume — many more high-volume up-days than down-days

Based on technical analysis, MarketEdge calls SHFL a "buy" in a "strong upward trend."

Sell

gain Bottom line
-6%

If it's October, the market must be crashing! My stop-loss order kicked in late in the session to boot me out of SHFL with a loss. It had been losing momentum, and today's gloomy market was the proverbial straw.