I took a nibble at MITK after learning about it here:
I don’t know if anyone is still following it, but it was halted yesterday with the CEO and CFO leaving abruptly.
It’s a good reminder to not get too concentrated in your portfolio, especially in micro-caps.
It also reaffirmed full-year revenue guidance of $62 to $63 million
MITK is really a micro, micro cap… It makes our small companies seem like giants.
Just because it’s at my fingertips, here’s another mini-lesson regarding MITK. Someone mentioned it a few months ago and I started watching it because growth was ticking up. Well in their June quarter, they reported over 3 million dollars in acquisition-related expenses for that quarter alone. I jettisoned it immediately.
I’ve seen several companies that can post impressive growth by acquiring other companies. Sometimes it works out, other times it doesn’t, but at present I see no reason to get involved with a story that includes that glaring complication (acquisition strategy). There are so many companies with asset-light business models growing incredibly right now. We might not always be able to have it all, but while we can, we should take it.