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WATCHING: I'll be in at 10 and out at 20.

July 21 2002 at 6:37 AM
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Scientific Games Corp. [SGMS] 
from IP address 209.240.222.131

SGMS has been basing since 1996 at $5. In 2001 it appeared to break out and almost hit $10. A TW trader might have been fooled by this because it's now back down to $6. I think that that turnaround was a shakeout. There is one huge volume spike in there.

Anyway, SGMS came off a high of $30 in 1994 and all this fooling around between just under 5 and just under 10 is a precursor to another significant and real run-up that could take place at any time.

SGMS is therefore on my watch list. I'll feel confident about getting in at 10 with a exit target of 20. There is lots of potential to go higher than 20 but I'm only interested in a TW-doubling rather than a TW-optimizer strategy. I would expect a climb from 10 to 20 within 1 to 3 years.

There is no P/E listed, nor are there any insider traders listed that I can find, but I'll be looking for these in the future.

One of TW's quotes or rules is that when a stock looks like it can't go up, it will. This is a case of that rule, in my view.

 

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