Wednesday, August 1, 2012

Did Green Dot Just Die?

After reporting earnings last Thursday night, Green Dot (GDOT) plunged over 60% during trading on Friday. So did the company just die?

The company provides widely distributed, low cost banking and payment solutions to a broad base of U.S. consumers. Green Dot's products and services include its market leading category of General Purpose Reloadable (GPR/) prepaid cards and its industry-leading cash transfer network which are available directly to consumers online and through a network of approximately 60,000 retail stores nationwide where 95% of Americans shop.

For the most part, the company provides the prepaid cards available at Wal-Mart (WMT). This program accounted for 62% of revenue during Q2. The biggest fear is that Green Dot will no longer dominate the market as larger players in the banking industry enter the sector in mass.

Read the full article at Seeking Alpha.


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