Green Dot Corporation (NYSE:GDOT) - Short squeeze candidate

Discussion in 'Stocks' started by miguel007, Nov 23, 2012.

  1. Green Dot Corporation (NYSE:GDOT) is a fast-moving and volatile play. On Wednesday we saw the stock jump from the red to its days high in seconds, when someone bought around 100K shares ! The stock closed in the green and up 3.5% on solid volume. I alerted my twitter followers to GDOT mainly because of this very strong buy order but their technical indicators also are screaming for a potential breakout. Short-term trend was broken to the upside, next stop 12 resistance and then gap fill at 13. The 20-day moving average is climbing up and we can see the RSI starting to break above 50. GDOT looks to be on the right track to a serious breakout. Besides what we see on the charts, one thing of interest has been the strong insider buying recorded in early November. CEO bought 89K shares. The short interest is about 16.23% of the float and it's supposed to take about 7 days to cover it, so a squeeze is always possible. If it breaks the 50-day tomorrow, shorts might be in trouble. Institutional still holding 72.29%. From a fundamental standpoint GDOT has a PE of 14.53, PEG of only 0.62%, $5.61 cash per share and a ROE of 12%. Keep GDOT on your radar screens.

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