All this USAA talk and short speculation is just that--noise. Short interest has dropped to 1.5MM shares from 3MM. MITK is too cheap given its overwhelming market position. They have saved the banks billions through branch closings. Think about the potential if they convert to a SAS model and charge for check deposit by license instead of by check. That is the juice for an acquiring company. No other company as anything like ID Checker. Who else can read every different driver's license and populate a form with the data from a photo. The applications are huge especially in Europe where "know your customer" and money laundering rules have tightened significantly. MITK has some 30 patents around its Capture products. These patents are worth more than the stock price today. Forget noise --look at the goal.
Real news now! Mitek ID Solutions Selected by Leading Digital Lender
7:00 am ET May 24, 2017
Mitek a global leader in mobile capture and identity verification software solutions, today announced that one of the nation's leading digital mortgage lenders has selected Mitek's Mobile Verify, Mobile Fill and Mobile Docs(TM) solutions to help it streamline the online loan origination process and improve the customer experience.
"Online consumer loans have increased more than 700 percent since 2010 and are estimated to represent a $100 billion market opportunity by 2020," said James DeBello, Chairman and CEO, Mitek. "To capture this valuable market, lenders need to embrace digital technologies that speed the process and keep applicants in the digital channel. With Mitek's identity verification and mobile capture solutions, lenders can finally deliver a fast and easy, digital origination process."
High operational costs are eroding margins for lenders. Mortgage origination costs alone have increased 79 percent since 2009. To compete in this new landscape and attract new applicants, lenders will need to increasingly adopt digital technologies that increase efficiencies, reduce expenses and meet consumers' desire for digital processes. Previously, applicants had to fax or scan hard copies of their IDs and trailing documents such as W2s and bank statements. With Mitek's mobile capture and digital identity verification solutions integrated into the loan process, consumers will be able to use their smartphone to take photos of document to pre-fill application forms, verify their identity and submit supporting documentation.
And the short trader full court press commences, with Seeking Alpha article this morning "Is the Empire About To Strike Back At Mitek Systems?" Management needs to pick-up their jock-straps before the StreetSweeper folks start another rush on the stock.
could someone explain what is going on with USAA please
Today is the first day where I felt that maybe, just maybe, I had experienced "fake news." I am not saying it was fake news, it just felt like it. It had that, "you have to be shi**ing me" feeling about it, and the underlying facts seemed so bizarre, e.g. USAA demanding payment of individual banks, but saying they don't intend to sue, and will wait as long as it takes for payment. And those very demands being leaked to the media at the beginning of the Summer, almost one year to the day (June 2nd) after the StreetSweeper article last year. Something doesn't smell right in river city.
And this is not the normal "Bob, Silky, etc. toxic post stuff." It is like the proverbial turd that someone has floated in the pool, but the pool won't be cleaned out for a while. If USAA is making a claim against customers, but is going to take forever to resolve the claims, this non-issue will hang out there forever. It smacks of someone trying to taint the Mitek waters during its current successful run up, and very likely continued successful run through 2017 and 2018.
It certainly is possible that StreetSweeper will try to make hay of this. That has been my concern all day. That is also why Mitek management needs to craft a public response. I am confident that this is not a long term issue from a stock price perspective. But I do think leaving it floating out there (pun intended) creates unnecessary volatility before some of the more important earnings reports that are coming up. At the end of the day, maybe that is the intention of someone.
It is times like these when Mitek management needs to step up and earn that conditional performance stock option grant.
New short numbers come out after market. I always said that USAA shorted before they filed suit but they run like a family fund and do not have to show anyone their trading records. If I were MITK, I would have asked for those records as it is criminal to do that and then file suite IMHO. They stink to high heaven.
USAA has the right to use mobile deposit for its customers without paying Mitek. They could really not enter the banking market as they would have to displace Mitek's Capture technology. Fiserve and Jack Henry would never change front ends. USAA capture was developed by Mitek and since that time several software updates have improved the Mitek product. MySnap is the most significant and is free to Mitek users. MySnap is a huge improvement. USAA cannot use that feature.
Mitek has huge first mover advantage. Their channel partners charge about $.50/check with $.10 going to Mitek. They will not rewrite all the software to try a new product without all the features of Mobile Capture to save a few cents. More important ID Checker is getting traction and will be far bigger than check deposit.
Mitek has an option package for execs that kicks in at $16/shr and then again at$20/shr. It is there in incent sale of the company. Mitek is still very cheap at a $250MM market value. At $20, it would be $660MM. WE will get $20/shr.
USAA is a non issue - they couldn't beat mitek, what makes you think they'll beat chase, wells, citi, Bank of America and 9000 other banks? Mitek settled the suit and usaa didn't dispute the patents - so mitek customers will say we are using mitek patents which aren't disputed.
My guess is big shorty usaa is upside down on their mitek short and wants to recoup that in license fees since even shorty doesn't think mitek will fall with the additional surprise revenue stream of id verification...
Either way it's nice to see silky back. Full disclosure: he is long both and sears Jc penny...
Silky, what "bone" are you referring to?
Way to go longs. I'm proud of us. USAA humiliates itself, publicly, and we only lose 30 pennies (a nod to ol bobby) and that will likely be recovered by week's end.
How sad is that letter and article from a respected company. Geeeez. USAA might as well have just sent an email to all the banks with a link to their Go Fund Me page.
There was a lot of discussion today about the USAA/Mitek Systems settlement. I don't believe that I ever saw a copy of the settlement agreement, which is what I would expect. But Mitek did issue a press release as follows:
SAN DIEGO, CA – September 3, 2014 – USAA and Mitek (NASDAQ: MITK, www.miteksystems.com), today announced that they have agreed to settle all pending litigation between them.
USAA and Mitek Systems have been in litigation since March 29, 2012. Over the past several days, the parties have met and conferred in good faith concerning the claims remaining for trial. As a result of this discussion, the parties have agreed to resolve these claims as follows:
- USAA will move to dismiss all of its remaining claims, including its claims for misappropriation of trade secrets, breach of contract, fraud, inequitable conduct, and invalidity of Mitek's patents. - Mitek will move to dismiss all of its remaining claims, including its claims for trade defamation and violations of the Lanham Act. Mitek covenants not to sue USAA for patent infringement for products currently sold, marketed, or advertised by USAA, including its Deposit@Mobile application. - The parties acknowledge that distinct patent rights exist for each of them. - Neither party admits liability on any claim, and neither party is making any payment to the other. - USAA is retaining its license to use Mitek's Quick Strokes, Quick FX Pro, and Image Score software products.
That is all of information that I currently found regarding the settlement agreement. Since I actually am a believer in having the facts, I wanted to pass this along.
Well if everyone thinks USAA is a non issue, anyone have a better explanation for today's price action?
Having read Silence's post of the settlement details, USAA can not go making any claims against Miteks's customers using Mitek's patents, especially the MySnap, because that would be res judicata
goldhammer, in a response to Silky's Deja Vu post you said "Don't see the bank responding back to the letter, just passing it on to the vendor for this one.If you read the letter that's going out it sounds like sour grapes.....MHO"
I have only had the benefit of reading the articles referring to the USAA letters. In fact, one of the articles expressly states that USAA has not released the letters. So just what letter did you read that "sounds like sour grapes?"
Where did you get it?
Please provide or direct us to a copy of it.
Movement in PPS may force Mitek to speak up.....MHO
Attached is one of the better recent articles on USAA license proposals. Also, my recollection is that the USAA-Mitek settlement had a clause that USAA retained the right to re-file litigation claims. However, I cannot find the document which referenced that claim. Just my recollection.
Northland Capital Upgrade to $11
Needham Conference - Mitek Transaction Pricing Model Notes
Finally, Mitek executives have provided some details regarding the transaction pricing for mobile check deposit and mobile verification. This information has been sought after by all who have traversed this message board. It has been the best kept Mitek secret to date. One could say it is the Holy Grail and the Mitek Team decided to disclose it during the presentation in response to a participant question. So without further ado, drum roll please.....
Mobile Deposit - $0.12 or less per transaction depending on the volume discount taken advantage by the client via the tiered transaction licensing model in place. Mobile Verify - $1.00 per transaction (No discount was disclosed)
Competition question addressed: Mitek's ID Verify competition seems to be the credit bureaus as their data is used to verify the majority of all new accounts opened today. This market represents a multi-billion dollar opportunity focused on proofing and validation.
Lovely day to be long on Mitek. About time this baby received the recognition! $12/share by end of the year.
And so it begins...again. Well, Street Sweeper has not struck yet, but apparently the Empire might. Here is a new article just published on Seeking Alpha. Although not terribly scathing, it is written by a self declared short. Over all these years it seems that the same thing keeps happening to MITK...it is tiring!