Six Flags Entertainment Corp (SIX), American Water Works Company Inc (AWK) & Total System Services, Inc. (TSS): Shorts Are Piling Into These Stocks. Should You Be Worried?

Another growth driver is its purchase of NetSpend Holdings, which closed earlier this month. NetSpend is a general purpose reloadable prepaid debit card company, which is meant to service some 68 million underbanked citizens in the United States. Prepaid debit cards are a hot spot of growth in the U.S., since the credit crisis made it impossible for some people to get traditional bank accounts. It could also represent a big opportunity overseas in underbanked regions such as Africa and Asia.

But not every prepaid company offered what TSYS was looking for. Green Dot Corporation (NYSE:GDOT), for example, directly competes with NetSpend, but has a good chunk of its revenue tied solely to Wal-Mart Stores, Inc. (NYSE:WMT). With the introduction of new competitors within Wal-Mart, Green Dot was left scrambling for new retail outlets last summer and has yet to fully recover. TSYS made the wiser decision to scoop up the pricier NetSpend, which had considerably better retail outlet diversity.

In short, bet against TSYS at your own risk.

Foolish roundup
This week’s theme is all about real-world necessities and diversity. Water is a basic need of life, and access to credit is slowly becoming a way of life for many citizens around the world, making American Water Works Co., Inc. (NYSE:AWK) and TSYS two companies that aren’t worth betting against. For Six Flags Entertainment Corp (NYSE:SIX), which lacks any driving force or branding, it may find itself at the mercy of a slow-growing U.S. economy.

What’s your take on these three stocks? Do short-sellers have these stocks pegged, or are they blowing smoke? Share your thoughts in the comments section below.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article.

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