I have written a lot about Monitise and its position in the mobile money supply chain. Monitise sits at the bank end, managing for the banks the links to mobile systems securely. If there is a way for banks to authorise payments through mobile phones directly, this will be the way.
The shares have fluctuated in the last 12 months between 40p and 25p and currently sit at 28p. There are several reasons. Perhaps the principal one is that they continue to issue shares, so gradually diluting individual investment. So the cycle is so far, investors get excited by what is clearly a young dynamic company in major growth globally, who recently acquired a US company who was a competitor...the shares rise. The company announces great earnings growth....the shares rise. Monitise then issues another 200m shares and the shares decline again.
Now Monitise view of this is that they need the expanded capital on the balance sheet to invest in new projects and therefore its all good. I think I agree with them overall. But most investors get nervous when companies increase share count.
I think this is a company in a very early stage, but with good management and a tremendous growth story. I think that the opportunities globally are huge and that they need capital to grow as rapidly as they can. In that situation one could view the increased shares not as dilution (although it technically is), but as essential fuel for growth. At 28p they represent a great investment opportunity. I am invested through the Fund I set up to report on this site, but also personally.
The shares have fluctuated in the last 12 months between 40p and 25p and currently sit at 28p. There are several reasons. Perhaps the principal one is that they continue to issue shares, so gradually diluting individual investment. So the cycle is so far, investors get excited by what is clearly a young dynamic company in major growth globally, who recently acquired a US company who was a competitor...the shares rise. The company announces great earnings growth....the shares rise. Monitise then issues another 200m shares and the shares decline again.
Now Monitise view of this is that they need the expanded capital on the balance sheet to invest in new projects and therefore its all good. I think I agree with them overall. But most investors get nervous when companies increase share count.
I think this is a company in a very early stage, but with good management and a tremendous growth story. I think that the opportunities globally are huge and that they need capital to grow as rapidly as they can. In that situation one could view the increased shares not as dilution (although it technically is), but as essential fuel for growth. At 28p they represent a great investment opportunity. I am invested through the Fund I set up to report on this site, but also personally.
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