Monitise PLC (MONIF) - OTCPK - Current
  • Sep. 11, 2015, 12:27 PM
    • The deathwatch is getting crowded this week for mobile-money firm Monitise (OTCPK:MONIF -17%) after its latest results, amid news that its CEO Elizabeth Buse was leaving the company for personal reasons and returning to America after 15 months, and that the company took charges of £94.3M for costs and intangibles it was carrying.
    • Pretax loss for the year was £227M, more than triple the prior year's loss. In London trading, shares have lost 94.5% of value over the past year, from about 44.6 pence to 2.56 pence, and over the counter shares trade at $0.039. It's failing to meet targets, guiding for no revenue growth during fiscal 2016.
    • Seeking Alpha contributor Paulo Santos notes that with a market cap of $95M and cash of $137M, the business is trading at a negative value and is essentially "done."
    • BTIG actually has reiterated a Buy on the stock -- though the firm has updated its price target to 9p, down from 52p, still 250% upside from today's London price of 2.56p. "While a case could be made for simply writing off the stock after what has been a terrible call on our part, we believe that with MONI's market cap of £61.6mm exceeded by its reported net cash position of £88.2mm, the share price reflects an excessive degree of pessimism about the firm's prospects and value."
    • Santos worries that the company has a past of making hardships seem less pronounced than reality, and points to cash burn as the unavoidable problem going forward even if financials look like they're improving.
    | Sep. 11, 2015, 12:27 PM | 9 Comments
Company Description
Monitise is the largest Mobile Money specialist in the world. We have a single-minded and realistic vision: to make money totally mobile across the globe.<br /><br />Were already working with over 300 of the worlds leading businesses and financial institutions across global territories to make... More
Sector: Services
Industry: Business Services
Country: United Kingdom