One of our favorite trading vehicles is a stock which Wade Cook described as a "rolling stock", or a stock which operates within a well-definited trading range, or a "channeling stock." Cardtronics plc is a domestically-based provider and maintainer of automatic teller machines (ATM's) in many parts of the world. The success of this corporation depends largely upon customer preferences to use cash rather than credit cards. This appears to be a developing trend despite all the "hype" about a "cashless society" where every transaction is done electronically. For sure you need a credit card for certain major transactions, and some rental places won't let you operate without one. But for buying a pack of cigarettes, do you really want to waste time and keep other customers waiting?

Our recent article on Cardtronics plc (CATM) is in the Archives Section Below.

Note: Zenith tries to pick only stocks which are shortable, but sometimes stocks appear afterward on the SEC Regulation SHO list of stocks which are not shortable, which is beyond our control. On some stocks, Zenith may hold more than the number of shares it trades in its inventory. Thus the "short" sale of such a security would technically not be a "short" sale for us and not subject to SEC rules regarding selling securities which are not deliverable. Also, stocks pop on and off the list available for shorting on successive days, so the presence of a stock on the current SHO list doesn't mean it was there at the time it was shorted.

Stocks recently restricted by SEC Rule 201 as not shortable unless we already have a position which are on our Active List include:IIN (12/01), PYX (9/28), EGAN (9/18), ETSY(1/30).