Vegas-based Shuffle Master does pretty much what its name suggests: It makes machines that automatically shuffle cards, which cuts down on cheating and ups efficiency at casinos. The company also designs table games (Press Your Luck, Three Card Poker) and slot machines.
The stock is one of ten on Sidoti & Company's Focus List (for more, see "Ten Overlooked Stocks Worth a Look"). Sidoti, an independent research firm that doesn't do any investment banking, looks for companies with low price-to-earnings ratios, strong return on equity and at least 20% annual earnings growth.
With a forward P/E of just 17 and a fat 27% return on equity, the stock isn't such a longshot for investors. Analysts expect profits to grow 25%, on average, over the next three five to years. And Shuffle Master's ace in the hole: It's debt free.
