Vantiv (VNTV): This little-known stock is acting very wellBy Timothy Lutts, Chief Investment Strategist and Chief Analyst, Cabot Stock of the Month
From Cabot Wealth Advisory 9/1/15 Sign up for Cabot Wealth Advisory—it's free
Little-known Vantiv (VNTV) is acting very well today.
Vantiv was recommended by Cabot Top Ten Trader a month ago, after it popped high on the heels of a good earnings report. It looked so attractive then that head analyst Mike Cintolo made it his Top Choice!
Here’s what Mike wrote then.
“Previously known as Fifth Third Processing Solutions (a nod to its partner Fifth Third Bank), Vantiv is one of the largest and most progressive companies in the payment processing industry, as well as the nation’s largest PIN debit acquirer. Headquartered in Cincinnati, Ohio, the company today has offices in Arizona, Colorado, Illinois, Kentucky, Massachusetts and Texas. Its client base includes nearly 400,000 locations. It has special relationships with big retailers Barnes & Noble, Dollar General, The Kroger Company, Walgreens, Kohl’s, Macy’s and T.J. Maxx, as well as restaurants In-N-Out Burger, T.G.I. Friday’s, Wendy’s International and Bob Evans. In recent years, the company has strengthened its technology and grown by acquisition: it’s now linked to more than 1,350 financial institutions, including more than 700 credit unions, and processes more than 15.7 billion transactions a year. Short-term, the stock is strong because the company released an excellent earnings report last week, but long-term, Vantiv looks like a fine bet on the continued growth of the cashless society.… Going into last week, the stock had found resistance at 41 many times over the previous ten weeks, but the earnings report triggered a high-volume gap up to 44, and since then the stock has been working on consolidating that gain. The buyers are in control here; there are few motivated sellers. Knowing that, we think it’s best to buy here.”
Since then, of course, the broad market has fallen apart. But VNTV, which dipped as low as 38 last Monday, is right back near its highs! In short, investors discovering the company and putting in buy orders outnumber investors looking to cash out—and there aren’t many stocks you can say that about today.
Now, this may be the first you’re read about Vantiv, so you probably won’t act on this recommendation alone.
In fact, it’s more likely that you’re still in love with Apple, and that getting you to sell that well-loved stock is going to take more time—and more pain.
But remember, nearly every potential investor in AAPL already owns that stock; they’re all potential sellers!
VNTV, on the other hand, has hordes of potential buyers, some of whom are already having an effect.
Bottom line: I think your odds are far better in little-known stocks like VNTV, that are acting well and demonstrating growing support.
For more details, as well as regular updates on VNTV and a slew of similar high-potential stocks, I recommend that you become a regular reader of Mike’s Cabot Top Ten Trader, so that you’ll not only be updated on VNTV every month, you’ll also read about nine other high-potential stocks, every Monday! Click here for more information.
8500 Governor's Hill Drive
Cincinnati, Ohio 45249
|Index Membership: N/A
Industry: Business Services
Full Time Employees: 3,299