The USD 27.9 support area, currently tested, might facilitate a technical rebound and the company’s fundamentals could validate this scenario.

From a fundamental viewpoint, we note the high level of margins expected at 17.3% for 2014 and that could continue to grow in 2015. The strong growth recorded on profits is expected to continue for the coming years. The EPS revisions are also in an uptrend and underline the good business predictability.

Multimedia Games is oversold and is near to the USD 29.3 support. The trendline close to the current price gives also credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 32.9 resistance.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position on the stock. A first target price will be the USD 32.9 resistance. A stop loss order will be placed under the short-term support currently tested.