Quote from CC..............
"We, of course, are innovating all of the time and some of these new markets are nascent markets. And so to stay alert with the business, we do need a distribution channel. We always believe very strongly in that from the very beginning, even with Mobile Deposit. And now with the ability to go in to our distributed partners and say, listen we have closed important deals, establish the need, the ROI and the price points. It makes the conversation easier, more direct.
And I think, more fulfilling for both parties as we enable each of us to sell through leveraged sales force. Keeping my words, small company by a comparison to Fiserv, NCR and FIS, and some other partners like Ensenta or even Cachet, all very capable companies with their own sales forces. So, allowing us to partner with them, triples, quadruples, orders of magnitude grows our ability to penetrate the market and do it quickly. These are short windows of opportunity we see ourselves enabled by distribution partnerships. It’s a key part of our strategy."
Sounds like Mitek does the selling and channel partners helps with the distribution. Hopefull, Mitek gets a bigger piece of the pie after marketing expenses. :)
Brianchesnutt and Ultra,
Thanks for quick responses. They seem to differ a little and will digest them later this evening.
I am still confused about the very large volume with the Jan, 2015 Puts (48,311) relative to the other Options available.
I kinda agree with once2chance with one caveat. They do need the $$$ for the lawyers, USAA, TISA, and others to come. I also think they wanted to increase the float in case of a potential buyer.
In previous postings you have explained the high short interest as part of an arbitrage/hedge of the tMED's. The explanation made sense. Recently the tMED's were mostly surrendered and the short interest recently fell to the pre tMED level (back to around 5%).
Now, you also mentioned that the short interest in TC stock will collapse after 5/15/15. That has occurred early because of the offer on the tMED's.
My Question for you (as I am not versed in the index options trading market).
Can there be such a thing as a short squeeze on a Option Index? The Jan 17, 2015 Option Index Put level for TC is 48,311. That is approx. 5 million shares. Since the tMED's are being surrendered will this cause a squeeze on that Put Option play if the stock starts to rise. Is there such a thing? And, how would could an investor profit from such?
ONE OF YOUR PREVIOUS POSTS
"Ignore it. 90+% of the short interest is just part of an arbitrage/hedge of the tMED, whereby the holder of the tMED shorts the common (in proportion to current settlement rate of the tMED) to reduce the net equity position of holding the tMED.
If you own 100,000 tMEDs and short the corresponding amount of TC common (about 538,000 shares), you can work the net equity invested the position to practically nil, since the short provides a credit to one' margin account.
Then you capture the distributions for de minimis net equity. Compounds one's ROR to astronomical levels.
In this case, the shorts of the TC common are getting free money with this trade.
After 5/15/15, the open short interest in TC's stock will collapse, as the tMED converts to common, and the holder of the common will deliver those newly issued common shares to close out the short. Poof.........gone. Less"
Another scenario, Is it possible that software revenue could be slightly lower because of limited new contracts signed and not many renewals with the big players?
Jor, they are listed a a Monitise Partner.
"Mitek's Mobile Deposit supports the payments industry standards for Remote Deposit Capture (RDC), and extends mobile deposit capabilities to millions of consumers who use cell phones equipped with a camera. The Monitise solution will integrate Mitek's Mobile Deposit application into its mobile banking and payments platform.
""Mobile Deposit is rapidly becoming a crucial part of any mobile banking offering. By integrating Mobile Deposit, the Monitise solution will enable customers to deposit checks from anywhere and adds new convenience and value to the Monitise solution's rich mobile banking offering."" James DeBello
President and CEO"
They do, go to the 2013 annual report and look at the section called independent audit report. Done by
Nigel Reynolds (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
4 September 2013
That sounds like a pretty good figure considering they have not added any major new accounts and there new products are not showing any usage growth. They will probably be around $3,200,000 in Software Revenue (based on last two qtrs) and then $1,450,000 in Maint & Service revenue (showing slow growth). Don't know how or when they bill their software revenue renewals and how many banks are up for renewal. Heck, we don't even know how many uses are included in the original software licenses. But, based on recent history, your number looks realistic. IMO
That sounds about right. Depends on legal costs and how much income from Software Maintenance. Hopefully, will be between 4.9 and 5,1.
Jor, take a quick look at this article (quant this high growth mobile company with 40%). Monif has an interesting strategy, International Player, in bed with almost all major players gives them great leverage and flexibility, huge growth, negative- large dilution. Could be a major player or buyout potential by Visa, IBM, or even Fiserv.
Jor, What is your opinion of Monitise (MONIF)? What do you think of the business model? The model is significantly different than MITK. Both Visa and IBM have taken stakes in the company, and others.
Yes, Monitise and Mitek are partners and Monitise integrates the Mitek technology into their product. Don't know if TISA is a partner of Monitise. Do you?
Jorlev, Unfortunately, the article also shows the BoA limits on mobile check deposits as approx. less than double the current level. And, the fact that Bank of America is saving $700,000/day while Mitek is earning only about $13,600/day (using 8 cents per) is not good. Heck, grocery stores have a higher margin (after expenses). But, an approx. double in product usage with BoA and adding additional banks will give them significant short term earnings growth.
In addition, one has to read into this statement (from same article)..................
"The concept of mobile payments is yet to really catch on. Imagine if you could open Bank of America's mobile banking app and scan the screen like a credit card to pay for anything you want. Certainly with the recent security concerns about using a credit card, something like this would be a viable alternative."
Obviously, BoA and others are just using Mitek's Mobile Check Deposit technology to acquire customers for future payment techniques involving non-script payment transfers. I estimate that Mitek has 3-8 years to develop new technology inline with other Mobile Payment/Deposit techniques.
correction "this statement should be of great concern to our investment" :)