hile volatility continued within the month of June, modest movement was noted in both the Standard and Poor's 500 Index (0.6 %) and the Dow Jones Industrial Index (0.0 %) at the close of the reporting period. At the end of June 2009, eight of the 16 gaming equipment manufacturers posted a gain, and several contributors to the index witnessed their stock valuations increase by double digits.
Selected positive contributors included: (1) Shuffle Master (SHFL), contributing 1.00 points to the index driven by a 50.57 % increase in its stock valuation; (2) Aristocrat Technologies (ALL), adding 0.67 points to the index due to a 4.41% increase in its
stock valuation; Bally Technologies, which was up 6.86 % and contributed 0.62 points; and Konami, contributing 0.52 points to the Index driven by a 3.66% increase in its stock valuation.
A handful of gaming equipment manufacturers offset gains of others during the month, including: International Game Technology (IGT), contributing -2.21 points to the index after an 8.41-% decline in its stock valuation; Lottomatica (LTO) posting -0.27 points to the index by a 2.90 % decrease in its stock valuation; and Astro Corporation (3064) declining 15.63 % and contributing -0.10 points to the index.
While willingness to travel and the cost of oil will play a pivotal role in the AGEM Index, proliferation of gaming in new jurisdictions remains an opportunity for growth during this recessionary timeframe as governments may consider gaming as a potential revenue source.
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 16 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 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.