OT - MITK update
On April 29th I wrote:
"For those interested in another potentially big gainer you might take a look at Mitek Systems (MITK). That is provided you haven't lost confidence in Vangorilla's stock picking abilities. I haven't. This is another one with disruptive technology potential for the Banking industry. I believe he was in MITK early on at around $1. He hasn't spoken about it recently so has probably moved on. It has been a real up & downer over the last year or so but I think it is on the cusp of a substantial move up. Just broke through $5. IF their new Mobile Photo Bill Pay technology becomes as popular as their Mobile Photo Deposit, and they have positive results for a patent infringement lawsuit, this could be a $25 or more stock easily."
Now, 30 days later the stock is almost 20% higher and I believe it is going to make a huge run. I started buying around $2.70 and am still buying. Bought some more today at $5.51.
This is a message I wrote today on the Yahoo MITK board:
"Lots of questions about why the big upward surge.
I don't think this is about a "signature patent" or about something "mysterious" that we don't know about. I think if you had read my messages over the past several days they have included the reasons why MITK was very undervalued and why this surge was going to happen.
1. It is now widely recognised that Mobile Photo Deposit is a hugely successful technology which is being demanded by bank & credit union customers.
2. It is being rapidly adopted by more & more banking institutions with almost 900 signed. Current revenues are only based upon about 1/3 of those institutions going live. Even with Mitek's #$%$ fee schedule, it is not difficult to see how they could triple revenues over the next 12 months or so and due to the nature of the product, much of the increased revenue will drop to the bottom line.
3. Early indicators for Mobile Photo Bill look very favorable for a success similiar to that of Mobile Photo Deposit. If that is true, Mitek would no longer be looked at as a one trick pony. They also have signed a second large auto insurance company for their Photo technology for that industry. So now you're looking at a company with 3 potential profit centers, $15M in cash and 0 debt. What's not to like?
4. There is a 25% short interest in MITK shares. While during negative or unsure periods that can be a real factor in depressing the share price, during encouaging times the exact opposite is true.
I think right now we are looking at pretty much of a perfect storm for a substantial upward move in MITK shares. These opportunities don't present themselves that often. Smart shorts will cover, and smart investors will add to or initiate positions. The really intelligent shorts might even decide to go long."
