Gaming Partners International Company (NASDAQ: GPIC) provides high-end casino chips and table gaming equipment primarily to casinos but also to consumers. Last year was a banner year for the company, which supplied equipment to open two large casinos in Macau. However, in 3Q 2007 revenue is down 25% to just over $15 million and gross profit declined $800,000. Net income plummeted more than 50% to $387,000 or $0.05 diluted EPS. YTD, Gaming Partners has posted a net loss of $662,000 in contrast to $5 million net income YTD for 2006. Despite the declines in 3Q, those numbers are much better than the first half of the year.

CEO Gerard Charlier was optimistic that the company would post a profit for the year, given that Gaming Partners controls a major share of RFID gaming chips for casinos worldwide and is the exclusive distributor of RFID chips in the US. Unfortunately, the company's chips, when tested for lead content, contained more than 160 times the federal lead limit for consumer products. One chip from a Las Vegas casino tested at 45% lead content. CEO Charlier stated that the company's products are safe when used as designed, but an Arizona public health official said spreading 1000 of them on the ground would constitute a "federal Superfund site."

The stock currently trades at $8.99, down $0.87, but may be due for an upswing if, in fact, the company's problems are all behind it. Gambling certainly is not losing its popularity.

MOST NOTEWORTHY: Research in Motion Ltd (RIMM), BE Aerospace Inc (BEAV) and Burger King Holdings (BKC) were some of today's more notable initiations.

• JMP Securities started Research in Motion Ltd (NASDAQ: RIMM) with a Market Perform rating as the firm has concerns about RIMM's enterprise-focused prospects in the hits driven, high-end consumer market.

• Wachovia initiated BE Aerospace Inc (NYSE: BEAV) with an Outperform rating, expecting significant growth in its core businesses.

• AG Edwards started Burger King Holdings (NYSE: BKC) with a Buy rating and $25 target. The firm believes Burger King has improved fundamentals and robust future earnings potential after years of turnaround efforts.

OTHER INITIATIONS:

• Raymond James initiated AnnTaylor Stores (NYSE: ANN) with an Outperform rating, Urban Outfitters (NASDAQ: URBN) with a Strong Buy rating and Charlotte Russe Holding (NASDAQ: CHIC) with a Market Perform rating.

• Caris started Medtronic, Inc (NASDAQ: MDT) with a Buy rating and $61 target.

• ThinkEquity initiated Gaming Partners International (NASDAQ: GPIC) with a Buy rating.

• Morgan Stanley initiated Alcatel-Lucent (NYSE: ALU) with an Equal-Weight rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Plexus Corp (PLXS) and Ameristar Casinos Inc (ASCA) were some of today's most notable initiations:

• Lehman initiated Plexus Corp (NASDAQ: PLXS) with an Underweight rating and $15.50 target.

• Wachovia started Ameristar Casinos Inc (NASDAQ: ASCA) with an Outperform rating; the firm sees upside for Ameristar through growth of existing properties that have expansions and the removal of the $500 loss limit in Missouri.

OTHER INITIATIONS:

• Mattel Inc (NYSE: MAT) was initiated with a Hold rating at Sterne Agee.

• First Albany started Gaming Partners International Corp (NASDAQ: GPIC) with a Buy rating and $23 target.

• Jefferies initiated Morgans Hotel Group Co (NASDAQ: MHGC) with a Hold rating and $20 target based on valuation.

• UBS started E*Trade Financial Corp (NASDAQ: ETFC) with a Buy rating and $29 target.

• UBS also started TD Ameritrade Holding Corp (NASDAQ: AMTD) with a Neutral rating on valuation.

• Stifel initiated Saia Inc (NASDAQ: SAIA) with a Buy rating and $31 target; the firm is positive on Saia's growth and said the company should be the biggest beneficiary of further tonnage leakage from Central Freight Lines, which recently went private.

• William Blair started US BioEnergy Corp (NASDAQ: USBE) with an Outperform rating.

• JMP Securities assumed coverage of Delta Financial Corp (NYSE: DFC) with a Strong Buy rating and $13 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).