Author Topic: MITK - Mitek Systems  (Read 16066 times)

Foreign Tuffett

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Re: MITK - Mitek Systems
« Reply #10 on: December 26, 2018, 05:52:54 AM »
Elliott has backed away from a proxy contest in exchange for the board initiating a review of strategic alternatives. "Multiple parties" have expressed interest, which is definitely a good sign.

https://www.sec.gov/Archives/edgar/data/807863/000080786318000117/mitk-20181221x8k.htm

My interpretation of this is that the board realized that putting the company up for sale was fait accompli, so why fight the process and risk getting removed?
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LightWhale

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Re: MITK - Mitek Systems
« Reply #11 on: December 26, 2018, 06:59:52 AM »
I agree, bought a few more shares. Surprising the stock has not reacted to the news

GregS

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Re: MITK - Mitek Systems
« Reply #12 on: December 26, 2018, 09:45:43 AM »
Elliott has backed away from a proxy contest in exchange for the board initiating a review of strategic alternatives. "Multiple parties" have expressed interest, which is definitely a good sign.

https://www.sec.gov/Archives/edgar/data/807863/000080786318000117/mitk-20181221x8k.htm

My interpretation of this is that the board realized that putting the company up for sale was fait accompli, so why fight the process and risk getting removed?

It seems the greenmail option is off the table for awhile, that's good news.

Obviously a more open sales process would be best for shareholders in getting the best price.  Maybe Elliott realized they weren't going to win a proxy contest?  Another possibility would be a take private by management and Elliott.  Might end up at a higher price than current offer but probably would still undervalue the company.

I agree stock should be higher today.

writser

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Re: MITK - Mitek Systems
« Reply #13 on: December 27, 2018, 08:08:51 AM »
Elliott has backed away from a proxy contest in exchange for the board initiating a review of strategic alternatives. "Multiple parties" have expressed interest, which is definitely a good sign.

https://www.sec.gov/Archives/edgar/data/807863/000080786318000117/mitk-20181221x8k.htm

My interpretation of this is that the board realized that putting the company up for sale was fait accompli, so why fight the process and risk getting removed?

Yeah, seems unlikely that Elliott would back down from a proxy contest without cause. Probably they reached some sort of an agreement: we pull the proxy contest if you don't obstruct the sale process. But then again, what do I know. Seems like the most sensible explanation but hard to read the tea leaves. Thanks for bringing up the news here. Bought a few more shares during the festivities.

Strange price action past few days (though I guess that was true in basically every stock) but you don't hear me complaining.
« Last Edit: December 27, 2018, 08:12:08 AM by writser »
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LightWhale

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Re: MITK - Mitek Systems
« Reply #14 on: January 02, 2019, 08:24:28 AM »
I got out at 11.32, for 12% in three weeks. 
I hope for you guys I'll be missing out on bidding war.

writser

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Re: MITK - Mitek Systems
« Reply #15 on: January 02, 2019, 08:53:08 AM »
Value investors always sell too early, right? I sold the majority of my position as well. So far the best bid is $11.50 and shares are trading very close to that price as of today. Hard to handicap the chances of a higher bid (so far I've seen nothing that indicates a bidding war) and there's still some downside if management does something stupid. Wouldn't mind adding opportunistically if it drops a few percent.
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LightWhale

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Re: MITK - Mitek Systems
« Reply #16 on: January 02, 2019, 08:57:19 AM »
In retrospect, considering our conviction after the latest management announcement, the right play might have been to lever up the position, fully covered by the 7.5 puts, which were dirt cheap.

writser

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Re: MITK - Mitek Systems
« Reply #17 on: January 02, 2019, 09:13:42 AM »
My conviction wasn't that high. In hindsight it's always easy to say a position should have been much bigger (and I love to complain about that every time an investment works out). But in reality unexpected things happens. If shares drop 10% I'd feel like an utter idiot losing a shitload of money after doing basically two hours of due diligence and a circle jerk in this topic.  I'm usually a bit (too?) conservative. My position sizing was ~3% here. Something like 6% could have been fine but I really would feel uncomfortable with a much larger position. I'm also usually skeptical about using options.
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writser

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Re: MITK - Mitek Systems
« Reply #18 on: January 03, 2019, 08:23:10 AM »
At some point today shares were down almost 10%. Thinking about buying back some shares.
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Foreign Tuffett

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Re: MITK - Mitek Systems
« Reply #19 on: January 15, 2019, 08:25:38 AM »
Presentation at investor conference starts in ~30 minutes.

http://investors.miteksystems.com/events-presentations
Former Teldar Paper Vice President