The Perfect Setup

Admittedly talking my own book (with a stop-loss below $25), I view Scientific Games Corporation (SGMS) as being in the sweetest of sweet spots on several levels from a bullish perspective. 

The Las Vegas-based SGMS provides gambling products and services to lottery and gambling organizations across the globe. Even more intriguing is the sports betting exposure the firm has, too. SGMS is also housed in the IWM, ETF for the Russell 2000 small cap-dominated index, which recently broke out from a tedious multi-quarter consolidation under the $160 level. 

Sporting a $2.5 billion market cap or so, a buyout by a larger gaming player is not out of the question, especially as various interests try to properly position for the influx of legalized sports betting jurisdictions across the country. 

But even if no buyout emerges, the SGMS daily chart, updated below, is as tight as it gets--Ever since an earnings pop last month the stock has pulled back in calm, orderly manner. 

I am long SGMS and looking for the plethora of tailwinds to ignite a rally not just into year-end but potentially into 2020 as the casino/gaming space at-large seems to be waking up (see LVS MGM WYNN) after a long slumber and having taken a backseat to tech in 2019.