Mitek Systems Inc. (NASDAQ:MITK)

CAPS Rating: 2 out of 5


Player Avatar Dow18k (< 20) Submitted: 3/31/2012 4:09:55 PM : Outperform Start Price: $11.60 MITK Score: -116.88

Mitek Systems has introduced revolutionary disruptive technology that has taken the mobile banking industry to a new level of flexibility and utility by allowing users to deposit paper checks via the camera on their Smartphone. They have exclusive reseller agreements with most if not all the financial technology providers and indirectly provide their software to seven of the ten top US Banks. JPM Chase is served as a direct client bringing the total to eight top banks.The release of their Mobil Photo Bill Pay product is just months away. Chase Bank (a direct client of Mitek) may be the first to launch but others are very close to unveiling their version powered by Mitek.Research reveals that Mitek is not a one trick pony as they have offerings suitable for the Insurance, Medical and Transportation industries ready to go. In fact, Progressive Insurance has implemented their Mobile Photo Insurance Quote product hosted by Mitek Systems just recently.It is important to note that Mitek has several approved patents on their proprietary technology, zero debt, and cash in the bank. Their rollouts have gained steam as they continue to bring hundreds of clients online.Their business model is based on razors and blades. As clients use their blocks of user licenses they must purchase more to continue offering the Mobile Photo Check Deposit service. It appears that deals being made for higher margin services such as Mobile Photo Bill Pay are being made directly therefore eliminating the Financial Industry resellers and driving even bigger profits.Given the facts presented above and the fact that many analysts are just discovering the stock as well as institutions I believe that this stock is a strong buy.The recent comment by analyst, Mayank Tandon, pretty much sums up the potential of just one market for Mitek's product, "We see the proliferation of smartphones driving increased demand for mobile financial services, especially among younger consumers, and banks accelerating the rollout of mobile banking services both as a customer acquisition and a retention strategy. Through its proprietary and patented technology, Mitek has established first-mover advantage in the emerging mobile check deposit market. Including opportunities in adjacent markets such as mobile bill pay and other mobile financial and business transactions, we estimate Mitek’s total addressable market (TAM) is well north of $1 billion."

Member Avatar masokotanga (99.70) Submitted: 5/17/2012 11:06:35 AM
Recs: 0

If you liked it at $11.60, you must love it at $2.15!

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