Thanks to all those who have provided so much outstanding due diligence. (and to the youtube Moni,Moni link that inspired a guy from an eskimo village above the arctic circle to register on the LSE site). You seem to have a much more polite and transparent group of investors compared to other stock trader's message boards.
Kass on Monitise
Lessons Learned Jul 29, 2014 | 3:16 PM EDT Stock quotes in this article: MONI.L, MONIF •Nearly everyone wants to immedaitely get on board a low-priced stock such as Monitise. I did add to Monitise (MONI.L/MONIF) long today, but, as I wrote earlier, I have one more meeting on Thursday to finish up this phase of my analysis. One of things that I have learned from writing about and analyzing a low-priced stock such as Monitise is how nearly everyone wants to immedaitely get on board. And even though prior to the miscue I emphasized time and time again that there were no near-term catalysts for traders, there are still those who like to trade a cheap equity even despite my protestations. My investment conclusion on Thursday will no doubt be that Monitise, despite the management's recent poor execution, provides an unusually attractive reward vs. risk. Perhaps, because of the share price drop, even more than before.
Hi, I am unworried by the shorters - they may have done recent damage but they are a short (!) term irritant. My second biggest holding is Pace (PIC) , the shorters tried it on there too, only to be fried between late 2013 and March 2014. Re Picstock's (hello Picstock !) comment on the revenue strategy changes being a reason for recent shorting, I think that the changes adopted by Moni are spot on. I work in the financial advice community and the companies that are now prospering focused some time ago on regular revenue per customer as opposed to large irregular upfront tariffs. The ones who didn't evolve in this way no longer exist. Good luck all long holders, gordonov1.
Why are companies shorting Moni?
Simply because they want to capitalize on recent SP weakness, which is down to four main reasons. 1) Monitise warned its losses would be higher than expected. 2) Revenue strategy changed and is unproven as yet. 3) As Monitise expands its business it diluted shares, thus hitting SP hard, causing further investor tension. 4) Monitise SP has had a good long run till now, many would want to lock in profits. All these factors and many more make it an easy target for shorting. For now many have put to one side the thought of huge long term potential and are only focusing on the immediate concerns. But one cannot ignore the potential and for this reason the short positions will not be held for long.
Shorters look to expose any perceived weakness and uncertainty. Moni certainly fitted the bill with a change in business model, profit warning (due to pursuance of new business model) personnel change all at a time when the SP had run away with itself. (Quindell was a classic shorters play) Sainsburys and Amec also in top ten at the moment so what!. Always difficult to value a company such as Moni (AIM,no profit, delaying break even several times, profit warning, complex partner relationships etc) A 9% short position of course means there is some serious capital at play, but on the contrary Kass & Cooperman are similarly long and hold considerably more than the shorters. Who’s right, time will tell. If just 5% of total share volume is the normally traded. 9% being traded by shorters can have some serious impact, which it has. Guess you could say us long holders were getting a reality check (wish I had shorted Moni but I tend to invest rather than play the markets). I remain long based on their “eco system” positioning and partner tie ups IBM, Visa etc. Maybe Gordonov is hoping that the IBM- Apple news of late will translate into some serious revenue for Moni, I am.
Hi Gordonov1, Great to hear you are a long term holder and optimistic about the near future! With great news so close by, what do you make of Monitise being in the top 3 most shorted companies in the UK?? Seems strange for funds to risk so much capital with imminent news?
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