Why Green Dot Is One of the Best Long Term Growth Plays
In this economic environment, pre-paid debit cards are perfect for those skeptical of financial institutions and those struggling to make ends meet.
There's a whole other growing segment of the population that isn't skeptical about the location of their money, they just don't have enough of it. These are the people you might see at the local check cashing service center jamming coins into the Coinstar (CSTR) machine to see how much they can scrape together for groceries. These are the people who can't get approved for a credit card and live paycheck to paycheck. If you've ever been in that situation, you know just how critical it is to know where every penny is and where it's going.

The company went public in July of 2010 at $36 a share and has traded as high as $65 so far. Its revenues have increased between 32% and 53% in each of the last four quarters. It is expected to increase its earnings 21% this year and another 32% next year to more than $2 a share. The company makes most of its money from new card activation fees, monthly maintenance and ATM fees. With expected expansion into more retail outlets and the increasing need for a service of this kind, I expect to see further growth. Institutional investors have taken notice, as more than 150 have established a position in the stock in its first six months of trading, making this stock one of my favorite long-term growth plays right now.
Dave Dispennette is the founder of The Stock Playbook, a do-it-yourself investment advisory service that boasts a 48% average annual return for its portfolio over the last five years. Dave's professional career represents more than 20 years of experience with some of the biggest firms on Wall Street. To see his latest stock recommendations or to sign up for a FREE 14-day trial, click here.
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