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Mitek Systems, Inc. Message Board

  • rspiland3 rspiland3 Feb 20, 2013 5:24 PM Flag

    Clowns...

    are making too much of this increased share authorization and the insider sales. Share authorization was in the proxy filed Jan 14 and discussed on the earnings call Jan 31. Yet the stock ran from $3.30 to $5.00 over the next 2 weeks. Anyone who sold today because of a new share authorization last month would have to be an idiot, and we certainly don't have any of those on this board.

    DeBello's sales probably didn't even cover the tax bill for his exercised options. Don't forget, when you exercise employee stock options, you get taxed on the difference between exercise value and market value even if you don't sell. So Debello incurred around $2.1 mil in taxable income, but sold less than $700k worth of stock. Yet he chose to double the size of his holdings. Other directors have exercised and held the shares in the past few months, suggesting insiders do not expect imminent doom.

    Mitek is an early stage growth company. The fundamentals are fine...the company is getting new business, transactions are growing 25%-plus sequentially, and the new MPBP product appears likely to gain traction with large banks. But it's a long term story. I expect profitability over the next 12-18 months. But the most exciting catalyst for the stock is when transaction growth and revenues begin to converge, and that probably happens this year.

    To me, the most likely reason for today's swoon was the unwinding of a technical trade which started last week and had a target of $5.00. It was a good trade for a nimble trader. But the long-term investment case for MITK remains intact.

    Sentiment: Strong Buy

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    • "are making too much of this increased share authorization and the insider sales. Share authorization was in the proxy filed Jan 14 and discussed on the earnings call Jan 31. Yet the stock ran from $3.30 to $5.00 over the next 2 weeks. Anyone who sold today because of a new share authorization last month would have to be an idiot, and we certainly don't have any of those on this board."

      U are just assuming its due to this...they OFFICIALLY VOTED YES to authorize shares like a week ago... after they voted, it actually ran up to 5 as noted.. so it seems extremely weird that people wud run this up to 5 after we found out it was voted YES, and then people wud start selling a week later because of it...

 
MITK
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