Monitise: Is There Value?
Paulo Santos • 61 Comments
Paulo Santos • 61 Comments
Dec. 1, 2015, 11:43 AM
- Struggling payments firm Monitise (OTCPK:MONIF) is off 7.1% in OTC trading after losing another key executive, with Chief Financial Officer Brad Petzer leaving his role.
- Petzer is leaving the board immediately and will continue to serve as CFO until a replacement is found.
- Monitise shares, deep into penny-stock territory for more than a year, have lost 90% of value YTD. The market cap of the company is now $92M.
- Shares fell 6.7% in London on the news.
- The company has struggled to maintain stable leadership, after founder and co-CEO Alastair Lukies exited in March and later, sole CEO Elizabeth Buse departed in September.
- Previously: Deathwatch grows for Monitise after grim results (Sep. 11 2015)
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.
Jul. 8, 2015, 11:30 AM
- Another hit for Monitise (OTCPK:MONIF), down 23.3% in U.S. trading as Visa Europe says it will sell its 5.3% stake "over time."
- The companies will keep working together on projects under a three-year pact they formed that ends next March. Visa Inc. (the American provider) already sold its stake in Monitise.
- Monitise shares fell to their lowest level in six years in London trading. The stock declined again on Monday as it issued yet another sales warning.
- Previously: Monitise trading down as it issues fourth revenue warning in a year (Jul. 06 2015)
Jul. 6, 2015, 1:49 PM
- Monitise (OTCPK:MONIF) is down 7.5% in over-the-counter trading as it issues yet another revenue warning, its fourth since last year.
- Revenues for 2015 are now expected at £88M-£90M. That's vs. consensus expectations of £91.4M.
- At the beginning of 2015, the company expected revenue closer to £120M, and in March reduced its outlook to £90M-£100M.
- The company still says it's on target for profitability by 2016. It revealed earlier this year that it's rejected several takeover offers.
- Last week it formed a £20M joint venture with Santander to invest in financial-technology companies.
- Shares closed down 2.9% in London, to 9.95 pence. They're down more than 80% over the past year as the company has struggled with a transformed business model, moving away from upfront licensing toward subscription income from a mobile money platform.
Nov. 27, 2014, 1:27 PM
- Monitise (OTCPK:MONIF) gets a £49.2M investment from strategic partners Telefonica (NYSE:TEF), Santander (NYSE:SAN) and Mastercard (NYSE:MA).
- They will buy 161M ordinary shares at 30.5p/share (Nov. 26's close), representing 8.2% of the existing issued ordinary share capital.
- Monitise also says it's in discussions to expand its commercial relationships with above partners "to support the development and accelerated rollout of its global platform capabilities."
- IBM has agreed to deploy Watson in support of Monitise’s new technology platform.
- Monitise also reiterates current year and longer-term guidance.
- Short interest is ~11% of float.
- Monitise was best performer on FTSE AIM 100 index today.
Dec. 19, 2013, 2:21 PM
- SandRidge Energy (SD +2.6%) spikes after Leon Cooperman lists it as one of his five favorite stocks, citing the company's "fundamentally improving trend" the market has been slow to recognize; he thinks SD has the potential to double to ~$10.
- The hedge fund manager also likes Sprint (S +3.3%) based on the prospect of a potential consolidation with T-Mobile, the U.K.'s Monitise (MONIF +7.8%) as a play on mobile banking, a re-made SunEdison (SUNE +4.8%) which is spinning off its money-losing semiconductor business, and Brazilian healthcare provider Qualicorp (QUAIF).
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
Industry: Business Services
Country: United Kingdom