Right now the NASDAQ is down 116 points which is almost 3%. MITK like just about every other nasdaq stock is taking a nice beating. In addition, we all know that going into today the share price had already taken about a 50% haircut from recent highs.
Mitek reported 2nd quarter earnings last year on May 8th. At the time the share price was $4.72. The revenues for that quarter were $3.2M. Going into that quarter they had 318 banks using Mobile Photo Deposit and virtually no revenues from anything else. Within a month of that report, the sp hit $6.50 and by June13 it was $7.36.
Going into the 2nd quarter of 2014, Mitek had 1362 live banks using MPD. That is over 4 times as many banks as the same quarter in 2013. Yes, many of the largest banks had begun using MPD a year ago so we shouldn't expect revenues to be 4 times a year ago, But logically, with 1000 more banks contributing, more maintenance fees, and revenues from Mobile Photo Bill Pay, it seems probable that revenues this quarter could be at least double last years.
Strange things happen in the stock market. Many of those we as individual investors just find it difficult to understand. But in the last analysis, share price always ends up coinciding with a companies performance. A company that reports 100% increase in revenues or more, has about .80 cash per share and no long term debt and is adding no revenue producing verticals, most likely should be selling for at least the share price it was a year ago which was $4.72. That's about 40% higher than the current price.
When Mitek reports earnings (in about a month) I think the share price will be closer to $5 and going to $6 or more from there could be a piece of cake. I started rebuying shares today and will continue to do so as the opportunities present themselves. Wouldn't want to be short.