Anybody know why MITK is crashing?
Down on a cautious article from StreetSweeper on insider selling among other things. streetsweeper.org
Rob
sorry wrong link. have to type url in:
thestreetsweeper.org/undersurveillance/Mitek_Systems_MITK_Lo…
hope that works
Rob
1 Like
I’m guessing you meant this. Seems a little dramatic. http://thestreetsweeper.org/undersurveillance/Mitek_Systems_…
2 Likes
Ahem…
FWIW, at the end of the StreetSweeper slam piece is this little nugget:
* Important Disclosure: The owners of TheStreetSweeper hold a short position in MITK and stand to profit on any future declines in the stock price.
Cheers,
Mj
Was long on MITK, now in hmmm mode
2 Likes
I would sell some if I was an insider too. I think anytime the chart goes parabolic is a good time to take some profits. The company is doing fine and will have a decent future but who knows what the macro economic future will bring so taking some profits seems like a smart idea.
2 Likes
Hi Paul,
My guess is that StreetSweeper targeted them because they were up 49% in the past 5 weeks on some very good news. Then they dredged up some old information about USAA, and presented it with “Gee, they lost this revenue stream”, as if one client makes a difference when they have hundreds. They apparently have 22 patents granted and 21 more pending. They were granted another big one in May. They win all kinds of innovation awards. They just signed up a top 5 bank. They cover most of the banks in the US as I remember. I suspect that Streetsweeper will soon cover their short at a profit after scaring people, and will move on. But that’s just my guess.
Saul
5 Likes
My guess is that StreetSweeper targeted them because they were up 49% in the past 5 weeks on some very good news. Then they dredged up some old information about USAA, and presented it with “Gee, they lost this revenue stream”, as if one client makes a difference when they have hundreds. They apparently have 22 patents granted and 21 more pending. They were granted another big one in May. They win all kinds of innovation awards. They just signed up a top 5 bank. They cover most of the banks in the US as I remember. I suspect that Streetsweeper will soon cover their short at a profit after scaring people, and will move on. But that’s just my guess.
Saul
Saul, thanks for those thoughts. They seem logical to me. I understand it’s just your guess, but I think it’s a good one.
What has been your experience with these short attacks? Does the stock typically recover after a few days once people realize it was just an attack? I’m sure it all depends on the circumstances (the insider selling really helped fuel the fire and tie StreetSweeper’s thesis together on this one).
Personally, I don’t think it makes sense for me to trim or sell out here, and the best thing to do is stay long and deal with the short-term (hopefully) hit to the portfolio.
Sure is annoying, though.
Cheers,
Mj
Long MITK
Anti short attacks
Finally I get an entry opportunity!
Thanks shorts.
A
4 Likes
From Roth Capitol;
On Thursday morning, TheStreetSweeper published a report providing seven reasons why Mitek Systems, Inc.
MITK 16.74%
, which had almost doubled since the beginning of the year, is on the verge of a nosedive. Among the issues were insider sales, intellectual property, Mobile ID competition and valuation. Following the release, Roth Capital analyst Darren Aftahi reiterated a Buy rating and $9.75 12-month price target on shares of Mitek.
The analysts think TheStreetSweeper’s note fails to consider the significant progress of the company’s Mobile ID, which still only accounts for roughly 25 percent of its sales, but is certainly helping drive an acceleration in topline growth. Thus, the experts believe “the current pullback creates a buying opportunity…”
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/16/06/…
And on a principal of streetsweeper;
Hunter Adams, a member of the expert advisory board for The Street Sweeper, understands stock manipulation firsthand. Adams entered the securities industry 15 years ago with a focus on high-risk penny stocks. He quickly became an expert at establishing shell corporations, executing reverse mergers and selling both equity and convertible debt in speculative small-cap companies. His career ended in 2001, when government investigators accused him of manipulating worthless penny stocks. He pled guilty to two conspiracy charges – for securities fraud and money laundering – and served time in prison for his crimes. Years later, he pled guilty to racketeering charges, fully cooperated with the government and accepted full responsibility for his actions. Today, he has embraced a life of reform and now hopes to help protect the public by exposing others who tread in the same murky waters he once swam in. To contact him directly, please send an email to hunter@thestreetsweeper.org.
http://thestreetsweeper.org/cleanupcrew.html
And barred by FINRA
http://brokercheck.finra.org/Individual/Summary/2636233
JT
No position here and unlikely.
6 Likes
I took the opportunity to add to my small position today, I like the company and it’s growth prospects.