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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Scratch-and-win ticket and lottery infrastructure specialist Scientific Games (Nasdaq: SGMS ) popped more than 15% in intraday trading Tuesday after announcing plans to reinstate its former chief executive as the CEO.
So what: At the request of the board, chairman Lorne Weil will return to the CEO position he held from 1992 to 2008, while CEO Michael Chambrello will assume a new role as the head of Scientific Games' Asia-Pacific region. The move, according to Weil, was made "to devote significantly more senior management time and personnel to further developing [the company's] China business."
Now what: Scientific Games has struggled with a lack of focus in recent years, but the personnel changes seem like a step in the right direction. While the company's casino system business continues to face increasingly tough competition from the likes of International Game Technology (NYSE: IGT ) and WMS (NYSE: WMS ) , today's announcement serves as a much-needed commitment to where the growth prospects are, by far, the juiciest -- lotto-ticket services in China. I'd be uncomfortable about jumping in today, but any pullback might be a good opportunity to play the turnaround.
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