SCG vs Greendot]Yes, SCG does have potential to be baby GDOT, and if they didn't think that way themselves they would not hire an ex Director of Financial Plannning of GDOT.
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The only problem that is holding SCG right now from being a a $5+ stock right at this current day/minute.. is the fact that they keep running into high expenditures. For example, take SCGs financials for 2010 from SEDAR (https://sedar.com/CheckCode.do;jsessionid=0000fUXgb30bQ_bYAlWfAjehzNj:-1)
Revenue $103,223,423
Cost of sales 97,948,583
You can see that revenues are very high for for a stock that is only trading at .40 cents. But again so are the expenditures, which restrain SCG from reaching its full potential in terms of net profits and reap the benefits of all this cash coming in.
Now if you look at GDOT for 2010:
Total Operating Revenues 363,888,000
Sales and Marketing Expenses122,890,000
(https://www.sec.gov/Archives/edgar/data/1386278/000095012311011845/v58648exv99w01.htm)
Here you can see there's quite a difference between the revenues and sales/marketing expenses which allows SCG to come out yearly with good profits.
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Now, what's important to remember here is that SCG is just getting its feet wet in the prepaid Master Card business since last year, and therefore they are expected to incur high expenditures like any other company would that is just starting out, or introducing a new product.
Also what's important here is that SCG was able to generate $100 mil in sales in just Canada where GDOT generated $360 million in the U.S. and is trading at +/- $40/share
What do you think will happen with SCG's revenues as they now capture both markets north and south of the border with ex GDOT executive in their arsenal? Personally I think... kaboom...
Speculation and common sense alone will be driving factors for SCG's stock price before the next financials, because I think that once the next financials are out, this will absolutely explode.
I also like the way this has been trading.. Very strong on poor markets and looks like accumulation is happening by the big boys with all the gaps being filled. Slowly day by day this is inching up and we are not getting any huge irradical intraday swings in the s/p.