The thing went kind of A-Z backwards today. i imagine most longs here were praying somebody would come along and buy Mitek and, of course, what happened was just the opposite. in that regard, i have contacted Mitek IR myself, because i also have a business i'd like to sell, and i reckon they still have a few $ million left.
in classic disregard for the common-share investor, Mitek offers no information regarding its valuation thesis for the acquisition, how they arrived at a price, how to justify the expenditure, or why they might think it will improve earnings. ID Checker is a private company, with no public filings, so the assertion that it is "profitable" could mean just about anything. Anyhow, if it is in fact profitable, it's got that much of an advantage over Mitek.
well we're agreed, except i don't make a distinction between cash in the bank and market cap... they're spending $10M+ on this deal regardless of where they dig up the money.
by my calculation Mitek is spending $10,650,000 and diluting the float by over 1M shares. As far as i can see there is little accretive advantage since the ID Checker is pretty much the same service already offered by Mitek. It does neutralize European competition, but the price is high for Mitek, a company with less than $25M in cash on the books.
Why is this a question? Obviously acquiring a huge new client base, vetted by the 3rd biggest bank in America, will make a difference.
Citigroup Sells Forex Accounts to FXCM
According to a filing on Friday, FXCM stated that the company is set to acquire the vast majority of margin forex accounts of Citigroup's CitiFX Pro. FXCM will undertake the acquisition through its U.S. subsidiary, Forex Capital Markets LLC, and U.K subsidiary, Forex Capital Markets Limited. Per the filing, "After the close of trading on Friday, June 26, 2015, accepted CitiFX Pro accounts will be transferred to the corresponding FXCM entity." Notably, CitiFX Pro traded more than $30 billion on an average per month in 2014.
We are retracting our prediction. International markets will not crash yesterday. Repeat: international markets will NOT crash yesterday. Furthermore, our firm disclaims any responsibility for investment decisions based on backwards looking statements.
I plan to sell my notes for $1000 each after the market crash. I'll use the windfall to buy an 85' yacht outfitted with a GD 30 mm Mk 46 gun system. I'm hoping i can get a deal on the boat and the canons in an 'end of days sell-off'. During the remaining end of days, of course, i plan to do a lot of raiding, pillaging and ravishing in the Gulf and across the Pacific Rim. My whole family - wife and kids - are looking forward to it. It's a dream we've shared for many years.
I can answer that trem. i am the CEO of an online metaphysical corporation with several sibylline assets. our senior sibyl, an oracle with 20 years experience in the high tech sector, has projected a market crash beginning Monday, May 25 (international markets) and Tuesday (premarket 4am) in the USA. The correction will be in the vicinity of 20%, and the prediction is statistically significant within a confidence level of .05.
This doesn't get delisted until the SEC decides it's a scam, which could happen someday, but it won't delist just because the share price is under $1. CS will simply do another reverse split ~ the third one in about as many years. Each RS to date has been 1:10. Last time, CS didn't even wait for it to drop under a dollar before splitting it.
1st Reverse Split 21-Dec-2012 10:1 ~ price before split = $ 0.9
2nd Reverse Split 30-Aug-2013 10:1 ~ price before split = $ 1.68