Author Topic: MITK - Mitek Systems  (Read 13603 times)

LightWhale

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Re: MITK - Mitek Systems
« Reply #20 on: January 15, 2019, 12:01:32 PM »
To save others the bother - Unless I dozed off at some point, nothing relevant to the acquisition


writser

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Re: MITK - Mitek Systems
« Reply #21 on: January 16, 2019, 08:50:18 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.

Obviously ..
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landstander

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Re: MITK - Mitek Systems
« Reply #22 on: January 18, 2019, 02:00:24 PM »
Same, got out at $11.25 at the start of the year. I tell myself better early than late. It doesn't help, but that's what I tell myself =)

Thanks for the topic, good idea that worked out faster than I expected.

Castanza

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Re: MITK - Mitek Systems
« Reply #23 on: January 30, 2019, 07:19:41 AM »
Link to Aite Report

https://www.miteksystems.com/aite-aim-whitepaper

Observations from ER.

Agilisys

 I believe their expansion into the casino/gaming industry will prove to be vital and lucrative as online gaming regulations relax causing an influx of "couch gamblers"
 from mobile devices.

Growth and Cash Flow

They have continued to be on par with their growth estimates and cash flow. During the conference call someone asked why cash flow was slightly
less this quarter than the previous two. Jeff responded by saying it was due to bonus payout, acquisition and other standard expenses. And that
moving forward we should continue to see similar growth. This was encouraging.

Competition

Mobile check deposits are completely cornered by them. There certainly is other competition out there (Listed in linker Aite Report). Mitek is regarded as the "best in class" currently. However in my opinion they need to expand their geographical influence to Asia.

Growth

I like that growth is not entirely depended upon their marketing efforts. A lot of it is organic through their "partners" or "customers" that utilize their system. However I'm not sure if I like their pricing strategy as it focuses on volume rather than per transaction such as some competitors. However they did take a few questions regarding price leverage and whether or not they would exploit this. Its something they are looking into, specifically in Mobile Check Deposits.

All in all I think it was a good solid ER, Fundamentals still look strong as well as guidance. However the competition is there and I hope Mitek can continue to hold an edge. I think they have an advantage in the financial industry over competition which is a key focus for them. I personally would like to see them expand into gov't related services. States are clearly headed towards virtual drivers licenses etc. I believe there is room for more than one company in this field. The key is picking the right industries to target.

Foreign Tuffett

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Re: MITK - Mitek Systems
« Reply #24 on: January 30, 2019, 09:20:34 AM »
Maybe I'm a rube, but I thought earnings were fine + they affirmed 2019 guidance. Obviously it's too early in the process for there to be any update on the strategic alternatives process. Anyway, as of this morning I am back on this pain train.



GregS

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Re: MITK - Mitek Systems
« Reply #25 on: January 30, 2019, 10:01:34 AM »
I'll add one observation from the ER: the relationships with their channel partners are early and they described Mitek as "co-selling."  This obviously requires resources and increases selling costs for now, but as this matures they will get much more leverage from these relationships.  Good for bottom line growth as they achieve scale.

Castanza

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Re: MITK - Mitek Systems
« Reply #26 on: January 30, 2019, 10:59:59 AM »
I'll add one observation from the ER: the relationships with their channel partners are early and they described Mitek as "co-selling."  This obviously requires resources and increases selling costs for now, but as this matures they will get much more leverage from these relationships.  Good for bottom line growth as they achieve scale.

Yeah I really like this aspect. It can be rough at first but when you get large partners (especially in finance) this could rapidly expand their customer base. Lots of financial institutions like to use products from the same provider for simplicity reasons.

writser

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Re: MITK - Mitek Systems
« Reply #27 on: February 08, 2019, 06:53:49 AM »
I bought back some shares after earnings (still only a smallish position). Agreed that the numbers basically looked fine at first glance. The downtick seemed excessive to me anyway as the company has a firm bid on the table and is in the middle of a sale process.

Usually not my habit to post rumours but from yesterday:

Quote
Mitek (MITK -0.9%) is attracting private equity interest, according to TheDeal.com sources.

Mitek started its auction in December. The company will set a deadline for the first bids at the end of this month and decide by the end of March whether to accept.

Benchmark's Mark Schappel thinks Jack Henry (JKHY -2.4%), Fidelity National Information (FIS -0.6%), and Paylocity (PCTY +4.6%) could be among the interested parties.

Source: Bloomberg First Word.

I'm not really interested in buying more at current prices: low conviction idea and hard to handicap the chances of a higher bid getting on the table. So I'm not too trigger-happy around $11.50. Still might be an interesting idea around current prices though.
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writser

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Re: MITK - Mitek Systems
« Reply #28 on: February 25, 2019, 09:13:24 AM »
Shares have been drifting down slowly on a few weeks of no news. Today might be a decent entry point again. I haven't sold any shares since the 8th but this is a low conviction idea and I don't feel comfortable adding to my position yet. Usually I add too soon.
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Foreign Tuffett

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Re: MITK - Mitek Systems
« Reply #29 on: March 11, 2019, 06:38:26 AM »
Shareholders did not approve amending MITK's stock incentive plan that would have allowed more shares to be issued. I take this as another sign that shareholders are out of patience with this board.


https://www.sec.gov/Archives/edgar/data/807863/000080786319000018/mitk-20190307x8k.htm