Its been a little over four months since I last wrote an article about Monitise (OTCPK:MONIF). Since then, shares of the company have continued higher to $0.94 at the time of this writing, up by a little over 77% since I first recommended the company to investors back in June. Unfortunately for shareholders, there has been very little financial media coverage for the company, even though the market capitalization has risen greatly to nearly $1.5 billion. I have been getting a lot of questions regarding the company over the last couple months and I thought it would be valuable to offer my readers an update of some recent events.
Legendary investor Leon Cooperman has actively praised the company over the course of the year; however, over the last couple months he really didn't mention his position. Investors were left wondering if he still considered the company a great investment opportunity. They need not not worry; Cooperman's Omega Advisors holds an impressive, company reported, 9.5% stake in Monitise.
On Thursday, Cooperman announced in an interview on CNBC that he thinks Monitise is going to be a "big winner" in 2014, he considers it one of his top picks. The company does have its hands in all aspects of the mobile financial space with ties to payment processing, P2P payments, and mobile banking. Cooperman went on to say he believes the company is "one of the things that has the potential not just in 2014, but three, five years, a five bag, maybe more". Not often do you see institutional investors like Cooperman saying they think we could see the value of a company multiple by five.
In the remaining portion of the interview, Cooperman went onto highlight the company's strong balance sheet and its affiliations with Visa (NYSE:V), and the other significant equity owners in the company. Back in my original article, I too highlighted Visa's impressive stake in the company. Between Visa Europe and Visa U.S., Visa holds a combined 13.6% stake in Monitise. Hopefully, this shareholder interest will lead to even more partnerships and synergies between the companies in the years ahead.
Current partnerships with an array of large financial institutions has helped Monitise generate monumental revenue growth. This growth was good enough yet again for Deloitte's highly publicized UK Technology Fast 50. For the third year in a row it was announced that Monitise fell into the top 15. This year, Monitise came in 6th, with reported 2319% growth over the last five years. The company's Chief Financial Officer, Brad Petzer, did make a statement following the news in November:
"We are extremely pleased to have been named as the UK's sixth fastest growing technology company, and more so to have maintained our top 15 position amid such strong competition for the last three years."
2014 should be an interesting year for Monitise as we see a greater number of companies moving into mobile payments and banking. Demand for the company's industry leading platform should grow with demand as Monitise is one of the only companies which offers the full spectrum to customers. More Visa partnership agreements outside of Europe can drastically help the company's revenues and credibility within the mobile finance industry. I remain long the company, hopefully we do see that five bagger Leon thinks we could see. If you are looking for a pure play on mobile finance, look no further than Monitise. Be aware, the company does trade primarily in London under the ticker symbol (MONI.L). There is an OTC offering here in the United States which is popular with investors.
Disclosure: I am long OTCPK:MONIF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.