MITK - Mitek Systems

[Castanza]

Thoughts on this with potential government checks on the horizon?

They have a monopoly in mobile check deposit. They could be seeing a lot more customers in the near future.

[patientcapital]

The lawsuit with Wells is troublesome for MITK because they could be liable to Wells to cover the damages.

This obviously would bankrupt the company / make he equity worth $0.

They gave a very evasive answer when asked about the possibility of this happening.

While there's a lot to like about the growth story for MITK, you have to assume there's is a real chance it's a zero.

[GregS]

Thoughts on this with potential government checks on the horizon?

They have a monopoly in mobile check deposit. They could be seeing a lot more customers in the near future.

Regardless of government checks, I think the coronavirus will be good for their business. Mobile check deposit is a cash cow that will continue during the crisis. A lot of people will try it for the first time as they won't want to use the ATM.  They will become recurring customers.

That said, I can't imagine the sales pipeline for their ID technology looks very good right now. But at least they will be able to fund operations with the check business.