Tridex May Win The Lottery Orderby
Tridex is a little-known company that hopes to make a big mark in gambling and wagering. That's one reason some players have been placing heavy bets on its stock, now trading at 6 a share on the American Stock Exchange.
What's the big deal about Tridex? Whispers are that it will soon sign a lucrative contract with GTech Holdings, a major provider of lottery services to government authorities and licensees worldwide. Tridex makes custom-designed dot-matrix printers used to print such items as lottery tickets, bank statements, and receipts. Tridex also makes point-of-sale printers for major retailers.
A big supplier of its own on-line lottery terminals to retail outlets, GTech has chosen Tridex to produce the terminal printers for its new lottery systems under an exclusive five-year contract, says one big investor. Earlier this year, GTech ordered 2,500 of Tridex' new printers and was apparently satisfied, says this pro, who has bought a stake in Tridex. Tridex Chairman and CEO Seth Lukash wouldn't confirm or deny the GTech story but says: "Tridex has very good relations with GTech."
Jack Silver, president of Silver Investment Advisory Research, figures that the GTech agreement will produce Tridex sales of $40 million to $50 million over five years. Tridex expects to boost revenues by 1997 to $100 million--up sharply from last year's $33 million. For 1994, Silver estimates Tridex revenues will rise to $50 million. He expects Tridex, which earned 44 cents a share last year, will make 60 cents this year and 95 cents in 1995, when he sees sales jumping to $70 million. Silver expects the stock to double in a year's time.