Sold most today and will reenter after secondary announcement around $3.75 - $4
Sold most today at $4.63 - $4.74 will reenter after secondary pricing announcement around $3.75 - $4
With increased authorized stock the day company announces even offering of 10 mln new shares this could dilute and bring the stock to under $4 quickly. Normally companies do discount 10 - 20% from the market price to ensure capital raise occurs imho
No, they just boosted their share authorization from 40 mil to 60 mil. They have about 26 mil shares o/s now, so maybe nothing. But provides flexibility for an acquisition if one presents itself. TISA only trades at 11.6x TTM eps, 11.9x EBITDA, and 1.2x revs. So it would be an accretive deal immediately. I tried to bounce this off their IR person last week, but it appears she's no longer with the company.
Depends on what they do with the money. I'm starting to think MITK will buy TISA. Deal would eliminate a competitor with a good reseller (JKHY), solve a patent litigation issue, give MITK a global sales base, and bring a healthy global sales team. But most important, it would be accretive immediately. In fact if MITK pays the full share authorization (20 mil shares = roughly $8.00 per TISA share), MITK would be profitable within a quarter or two. Such a deal would be hugely bullish for MITK. You might be right about a short term pullback, but the risk is not owning MITK for a 30-40% revaluation to the upside.
They should buy Vertifi before TISA. Vertifi actually sells MD apps in the US and works with Intuit.
They have put out a lot of product in the last year and are encroaching on the periphery of our feeding grounds.