Thursday, March 15, 2012

Investopedia: Green Dot Making Investors A Little Green

It's not uncommon for new stocks to give back a lot of their market cap as the initial public offering (IPO) buzz fades and initial buyers look to cash out. In the case of Green Dot (NYSE:GDOT), that readjustment period has been pretty difficult as the stock is off nearly 60% from its all-time high. Making matters worse, competition is heating up and management's decisions have left more than a few investors scratching their heads.

Not Quite Living up to all the Growth Hopes  
Green Dot has logged three straight quarters of below-consensus revenue, and that frankly weighs heavier with institutional investors than the fact that that revenue is growing at a better than 20% clip. Where Green Dot is earning some credit is with the margins, as the company did pretty well in the last quarter with a two point improvement in adjusted operating margin.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Green-Dot-Making-Investors-A-Little-Green-GDOT-NTSP-AXP-WMT0315.aspx

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