I overheard about Mitk at a business dinner and it caught my attention. Do you consider this stock could see double digits by the end of 2013? I've done my DD and I'm ready to invest/trade. HoweverI like to hear what others think, specially those that have followed the stock for some time, thanks.
I've followed MITK for a year and half, and really like it here. I expect to see double digits late 2013 or early 2014. MCD transaction growth is over 25% sequentially and is accelerating. Later this year, transaction growth and revs will begin to converge as customers reload. Their revenue model for MCD is front-end loaded, as they book revs when they sell to channel partners. Channel partners sell to banks, then begin a 6 month process of systems integration. So revs have been flat over the past year as new banks prepare to launch the service. I expect this quarter to be in-line to slightly better than expectations, but once revs accelerate, it should be really good for the stock.
Further, Mobile Photo Bill Pay is potentially a huge deal. The TAM is larger than MCD, and per-transaction revenues are higher. Once a few banks launch the service, it will likely be a "must-have" product for banks. I think estimates are too low for 2013, and there are several important catalysts, so think the stock is a "Buy."
double? Unlikely. That would take consecutive strong quarters of beating estimates and settling the USAA lawsuit. If MITK could get the share price around $4.50, settling the USAA case can easily take it to $7 but it doesn't seem like either side is all too willing to engage in settlement negotiations.
I personally would wait till AFTER earnings if I were you....Of course, there is a chance that the earnings surprise us and they are really good, but I dont think its likely. I think it will be either flat or bad... so you can get in lower. I'm holding this through earnings... unless... we see a spike to 3.90 before it ( which I doubt)... I shud have sold it when it hit 3.90-4.00....
Thx for your answer, I'm afraid you didn't answer my question thou. I'm inquiring about the stock future performance not just the upcoming earnings. Speaking of earnings, the price action today suggested people are buying in anticipation to good news. I might open a especulative position tomorrow if it keeps inching up. Thanks again and good luck with your trade.