Author Topic: MITK - Mitek Systems  (Read 11087 times)

Castanza

  • Sr. Member
  • ****
  • Posts: 381
Re: MITK - Mitek Systems
« Reply #50 on: May 01, 2019, 01:12:30 PM »
Surprisingly no acquisition.

“Over the past several months, our Board of Directors has led a process to engage with several interested parties to evaluate the relative benefits of various strategic alternatives, with a view to maximizing value for our shareholders. Following a thorough review of the results, the Board of Directors determined that there were no offers that it deemed in the best interest of Mitek shareholders, and today, we are announcing that we have concluded this process. We continue to focus on maximizing the significant opportunities we see for Mitek in the marketplace and remain thoroughly committed to delivering shareholder value through operating and growing the business.” - Max


writser

  • Hero Member
  • *****
  • Posts: 1883
Re: MITK - Mitek Systems
« Reply #51 on: May 01, 2019, 01:32:39 PM »
You beat me to it. Shares are now down ~14% after hours. Had a very small position left but managed to close it out at a decent price after-hours. All in all this didn't turn out as expected so far but I think there were a few times when the market was either very pessimistic or optimistic which I thought were decent trading opportunities. So financially this turned out pretty ok actually.

Results actually look fine at first glance but I don't want to get suckered into this on a fundamental basis so I sold, I'll gladly leave analyzing the underlying company to investors smarter than me. I'll keep an eye on this, I hope Elliott will issue a snarky press release soon :) .

And I'll leave the conference call to those who don't like Messi.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 882
Re: MITK - Mitek Systems
« Reply #52 on: May 01, 2019, 04:23:57 PM »
Mitek Systems Board,

Better thou hadst not been born than not t' have pleased me better.

Your Bitter Enemy,
Foreign Tuffett


Castanza

  • Sr. Member
  • ****
  • Posts: 381
Re: MITK - Mitek Systems
« Reply #53 on: May 01, 2019, 05:19:41 PM »
You beat me to it. Shares are now down ~14% after hours. Had a very small position left but managed to close it out at a decent price after-hours. All in all this didn't turn out as expected so far but I think there were a few times when the market was either very pessimistic or optimistic which I thought were decent trading opportunities. So financially this turned out pretty ok actually.

Results actually look fine at first glance but I don't want to get suckered into this on a fundamental basis so I sold, I'll gladly leave analyzing the underlying company to investors smarter than me. I'll keep an eye on this, I hope Elliott will issue a snarky press release soon :) .

And I'll leave the conference call to those who don't like Messi.

I'm a bit mixed on the results. At one end it would have been nice to see that buyout and take my gains and put my cash to work somewhere else, but on the other end I really like their new CEO. He seems very knowledgeable and seems to be pushing the company in the correct direction. I'm not really concerned with the share drop as it seems to simply have weeded out the people simply playing the m/a and I do feel pretty confident buying at this level (Although I think we could see mid 9's). The financials look pretty good and their customer base is expanding simply on their presence/respect in the market place. I believe they picked up Credit Karma this past quarter (don't quote me on that)

Their main competition (Jumio) seemed to have a good quarter as well. But it's hard to say because they're private and I can't see their financials. I think this space is very hot right now and Mitek certainly has a good (growing) client base. Now that I'm typing this I'm actually happy they didn't sell (could eat crow on that later). I am a bit overweight in my positions so that is slightly annoying (expected that merger for sure), but what can you do.

Castanza 

Antisthenes

  • Newbie
  • *
  • Posts: 2
Re: MITK - Mitek Systems
« Reply #54 on: May 03, 2019, 05:24:22 AM »
Surprising as I would have expected the board to transact even if just slightly above Elliot's $11.50 offer

Have exited as current valuation is a bit too rich for my blood -- still think it's a great company, but at 5.3x 2019 revenue, a lot has to go right

Castanza

  • Sr. Member
  • ****
  • Posts: 381
Re: MITK - Mitek Systems
« Reply #55 on: May 03, 2019, 06:22:01 AM »
Surprising as I would have expected the board to transact even if just slightly above Elliot's $11.50 offer

Have exited as current valuation is a bit too rich for my blood -- still think it's a great company, but at 5.3x 2019 revenue, a lot has to go right

I understand the valuation being high, but they have seen multiple offers at this level that would suggest some efficiency in valuation (aside from the premium). Personally I can see this settling around mid 9's for a little bit. But it's hard to tell for tech as they almost all trade at high valuations. If I may ask, what was your dollar cost average?