@thistimeitsdiff

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Stock Overview: $MITK
Mitek Systems, Inc. $MITK develops, markets, and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. The company’s solutions are embedded in native mobile apps and web browsers to facilitate digital consumer experiences. 99 of the largest 100 US commercial banks use Mitek's check deposit software. This gives them an extremely strong customer base while they transfer more into focusing on ID verification.

  • DCF Base Case PT: 22.00
  • 17.5x EBITDA multiple
  • 3.0% PGR
  • 9.39% WACC
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Whole Earth Brands ($FREE)
Got kind of bored and ran a 2 year Stage 1 DCF on $FREE. Went conservative against an Avg. Sell Side target of $21.92. This stock is extremely interesting to me and I think the Risk : Reward is extremely attractive in today's market.

Thesis:
  1. Before management change, cash flow was used to service debt. From now on, they will be aggressively reinvested. Therefore, trailing GAAP financials do NOT reflect the true state of the business.
  2. Building on relationships that have been around for multiple decades. For example, Altria $MO has been a customer for over 20 years, although FREE is trying to diversify from tobacco.
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