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When considering whether to invest in this company, you not only need to consider to financial fundamentals but also the morals of owning this company. Aristocrat Leisure business is to make poker machines(slots to our American fools) which take advantage of ignorant and mathematical challenged people. Even though problem gamblers make up a small proportion of all gamblers, they contribute most of the profits. Supposedly poker machines are a form of entertainment and the profits are meant to be re-invested in the community, it is up to you to judge whether this is true. My perception is that poker machines make much money for the wise-men at the expense of people with low incomes.

Ok, enough ranting for now. If you do decide that is morally acceptable to invest in this company, go around to almost any location that has poker machines in Australia. You will find that the popular machines are produced by Aristocrat, and that they turnover much more money than machines produced by any other manufacturer. This makes these machines extremely popular with their operators. Overseas, and espically in the USA you will find that most machines are reel-based(compared to Aristocrats computerised versions) made by IGT. However many of the overseas operators are slowly coming to relise that Aristocrat type machines offer greater profits once the patrons become "addicted" to them. This represents Aristocrats greatest oppurtunity for growth in the future, which looks very bright. Not considering the moral aspects I would consider Aristocrat to be a buy on its future prospects, although not having examined the financial statements I wouldn't buy at any inflated price.

In affect , you are investing in a tobacco-like company, but instead of the product being dangourous to your health the product is dangerous to your savings. I know I would rather be bankrupt than to have lung cancer.

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