Stock of the Day

My stock of the day is Jamdat (JMDT).
The company is located here in Los Angeles, though I have never visited them. It publishes wireless entertainment products such as video games, ring tones, etc. Market cap is $728 million (small cap).

The stock was down big this am, on news that Verizon and Sprint will offer games from competitor Electronic Arts. But the stock bounced off of its 50-day moving average, and has climbed all the way back into positive territory.

Given that short interest is more than 20% of the float, this was probably a good chance for shorts to cover. If the stock starts to climb again, I would expect further short-covering. The company has beat consensus estimates for the last 2 quarters, and estimate revisions continue to go up.

I think it could run back to new highs in the near future.

long JMDT