|Wednesday, 20 June 2012 08:12|
There aren’t too many stocks that double in a month and still look attractive. Mitek Systems, Inc. (NASDAQ - MITK - $4.13) is one such stock. The stock is a cool story which is why it was $13.00 just 3 months ago. It is clearly under major accumulation and we think it can jump another 50% from here in the near term. Here is the story.
MITK is a mobile imaging software solutions provider that allows users to remotely deposit checks, pay bills, get insurance quotes, and transfer credit card balances by snapping a picture with their camera equipped smartphones and tablets. Mitek’s technology increases convenience for the consumer by eliminating the need to go to the bank branch or automated teller machine. The technology also reduces processing and customer acquisition costs for the financial institutions, and is a differentiator for some customers due to the unique features of this application.
The Company has hundreds of financial institutions as customers including 8 of the top 10 banks, and recently hit the $10 billion mobile deposit mark.
MITK is also making headway in the prepaid debit market. While financials for the company should not be earth-shattering this year, it looks like next year could be outstanding.
With a good story, nice chart, and big volume, MITK is primed for a nice trade, or even longer term holding, as the financials catch up to the sizzle.
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