They quoted the math with a $10B offer minus debt at $36 per share. If that is really the number for $10B that gets rather ugly at $9.5B billion offer. Getting $33 is a joke for the people holding prior to the DI purchase when it was over $40. So basically we are taking a big haircut for Nutti management mistakes. While other financial services companies have gone up well over 100% in the last 3 years, we have gone down.
Management just made some key mistakes since I've been a shareholder over the last 3 years or so. Private Equity purchased DI for $1 billion and 6 months later sells it to NCR for $1.6. Clearly we are not getting much synergy so far from that purchase with revenue basically flat. We had to pay up $600 million over 6 months prior buyout, which would make our balance sheet a whole lot more attractive at this point.
I do think with a change in management there is potential to get things on the right track.
Cross our fingers we get a respectable offer.
I hear you although shareholders won't let a deal fly that won't lead us to at least $10B and even that is really pushing it. The company is already trading at a heavy discount vs rivals in the financial services sector. They clearly need to generate more cash flow and reduce that $3.2 billion debt (which partly came from that DI buyout).
We were trading over $40 not that long ago. It is already going to be a stretch if shareholders take $36.
I believe it is Sunday. I don't think anything happens unless we get a bid that tops $10B including debt. At $10B we should be in the $36-37 share price buyout. Getting down to $9B is getting us in the $32-33 share range. No way will shareholders like a price of $32 fly. Hell we were trading over $40 before we overpaid for the DI buyout.
So we already know one offer was $9 billion. Maybe the final offer will be in the $10-$11 billion range.
He clearly made a horrible decision on the DI purchase. We have little synergy obviously coming from that buyout. Matter of a fact we have analysts expecting declining sales. Problematic for sure. If you look at the premiums that other financial services companies are getting, we are way discounted here.
We had an amazing bull market the last 3 years since the DI purchase and our stock is down. Really sucks because other financial services companies have gone up well over 100% in the last 3 years. Look at FISV, FIS, and others.
Name ....Stevo...Bama. Everyone hates Obama. That said, MITK is the healthiest they have ever been. Just purchased another company. What do you think that says about their future cash flow?
wow...that number is crazy. At $.08 per transaction that is $16K a day from one customer. Everyone is on board so it will be interesting to see how expansion of mobile deposit is kicking up across even community banks.
The company is in a hell of a lot better shape now than it was at $12. MITK is now in the black and mobile deposit imaging is a fast growing area. If they can earn a very likely (IMO) .30 next year, the stock would easily support the $7 levels.
It sounded like people were wording "hedge funds were balking at the $10 billion $36 share price". Really, he better not be negotiating down from $36. I'd be very annoyed with a $36 purchase. Everything was fine before adding a ton of debt for the DI purchase they haven't leveraged yet.
Trust me I'll vote no to anything not near $40. The stock was over $40 before the DI purchase. Clearly DI purchase was overpaid nonsense. They paid $600 million more than what it was purchased from the hedge funds 6 months prior. Why wouldn't they have just purchased DI for $1 billion prior to the hedge fund purchase. Having that extra $600 billion would sure look great on the balance sheet today.
Is that including the $3.4 billion of debt? If so, that isn't much of a premium at all from today's close. Maybe $32-$33 per share?
MITK is starting kick in gear. Now in profitability mode and reasonable value.
They do check image deposits and nearly every single bank uses their patent. Turned to profitability the last 2 quarters.
the company is currently trading at less than the cash value on hand. That seems insane! I got out a long time ago at $7.00 range, but it seems really tempting to get into LF at $1.30 which is less than cash on hand. Of course if losses mount, that means nothing.
Word was a possible deal valued at $10 billion? Even if that includes the debt of NCR it would make a huge premium. Why did we sink under $30 now? NCR has been my most frustrating investment in the last 3 years.