What happened to the Aristocrat Leisure share price?
Shares of Aristocrat Leisure [ASX:ALL] gained over 1.80% today.
Why did these stocks climb?
The gambling giant and Fortescue Metals [ASX: FMG] were both added to the S&P/ASX All Australian 50 Index after they released their quarterly review. They bumped Coca Cola Amatil [ASX: CCL] off the top 50 most valuable companies in Australia list.
In the wake of rising iron ore prices, Fortescue reported a net profit after tax of $1.2 billion — almost four times the amount of the previous corresponding period. Shares for Fortescue were also up 1.36% today.
Aristocrat is a leading global provider of land based and online gaming solutions, with products and services in more than 90 countries. They provide a range of different products in the pokie machine sector — featuring games like Walking Dead and Games of Thrones — and casino management systems.
Aristocrat describe themselves as an ideas company. They aim to provide fresh thinking and creativity to deliver the world’s best gaming experience.
Back in 2008, the company was suffering from a range of problems, ranging from falling profits to unhappy shareholders. It was then that former Fosters beer senior manager Jamie Odell took over. In eight short years he turned the company around.
Shares fell sharply last 9 November to a low 14.05 when Odell announced his resignation. Shares have recovered since and were trading at 17.20 on 9 March.
Trevor Crocker, also a former Foster’s employee, has taken over as the new CEO. He was the first employee to be recruited back in 2009 by Odell.
What now for Aristocrat Leisure?
During the annual general meeting, the incoming CEO has promised investors growth and product renewal.
Investors now need to decide if the Crocker will live up to his promises, and if both Odell and Crocker have built a sustainable growth model for the company.
By Selva Freigedo