And on Monday the company released results that disappointed investors. They said profits fell 63% and shares moved 8% lower after hours.
Shuffle Master (SHFL) Chief Executive Mark Yoseloff joins the panel for this conversation. Here are excerpts from what was said.
What’s going on?
"There’s a little bit of short term upheaval,” replies Yoseloff. “But there’s long term good news when you look at our results.”
How do you see that?
“We announced about a year ago; that after 5 years of unbridled growth we were making changes to our business model,” says Yoseloff. “(We are) leasing our products and selling less.. In the short term this is going to reduce results. But in the long term the lease model has proven to be a great model."
He adds ”And we set records in every leasing category that we have… the revenues in leasing are at or above record levels. And this bodes very well for our future.”
What’s your timetable?
We’ve talked in terms of a 5 year time table,” replies Yoseloff. “But you ought to see real improvements in the the next 18-24 months.."
But your stock has fallen apart this year.
“It’s a bad year.. but one to be understood in the context of the re-making of our business model.”
Dylan Ratigan asks the panel what they think of this stock?
Guy Adami tells the panel if the stock trades 5 to 7 times normal volume, it might be okay to look at this stock.
Karen Finerman likes the sector.
Pete Najarian prefers Wynn Resorts (WYNN) and Las Vegas Sands (LVS) which he says are both buys.
Jeff Macke recommends International Game Technology (IGT) as well as Playboy (PLA).
Check out our Fast Money's June interview with Shuffle Master Chief Executive Mark Yoseloff in a post titled "Bad Hand." The link is below.
> Bad Hand