Where to put new Technology money? | TigerDroppings.com

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ynlvr
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Baton Rouge
Member since Feb 2009
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Where to put new Technology money?



I have a technology hole in my portfolio and I am looking for good candidates to add spice core holdings. My mutual funds are already peppered with some of the large caps like APPL, ORCL, GOOG, IBM. I am looking for a little more of a hot money play with a 1-5 year horizon.

I've been in BRCM, GLW & CREE for about a year. Only CREE has done me any real favors. I'm still thinking QCOM should be in my mix though it is likely to be well represented in other holdings.

Any strong opinions or observations on the Tech front?







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Catman88
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Baton Rouge, LA
Member since Dec 2004
40245 posts

re: Where to put new Technology money?


MSFT is slightly undervalued right now

CSCO is a strong mover with potential to move up more






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LSURussian
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Baton Rouge
Member since Feb 2005
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re: Where to put new Technology money?


quote:

Any strong opinions or observations on the Tech front?
There was a poster on this board a couple of years ago who believed MVIS was going to be the next AAPL.

Of course that was before MVIS had to issue more stock to its creditors in order to avoid bankruptcy and its stock price went under $2/share.......



This post was edited on 3/25 at 4:03 pm


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ynlvr
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Member since Feb 2009
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re: Where to put new Technology money?


Likely was a strong opinion too. Tech is wrought with peril and opportunity. I have been familiar with both.

I do like what I am seeing in CISCO. And QCOM has done less than I expected this year. They seem to be rather safe plays, nothing real new here.






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TigerDeBaiter
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Member since Dec 2010
2891 posts

re: Where to put new Technology money?


I like MITK, but do your own DD.

They are the tech. behind mobile deposits an have recently moved into the mobile bill pay space.






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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
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re: Where to put new Technology money?


quote:

MITK


Interestingly competitive space. Medical imaging origins? Whoever correctly predicts the future method of payments will be a big winner. This is the obvious. VISA and MC have been raking in moolah before, during and after the credit bubble.






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ynlvr
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Member since Feb 2009
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re: Where to put new Technology money?


quote:

MITK


This is the interesting kind of response I was hoping for. Something a little spicy and fun to research.






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TigerDeBaiter
LSU Fan
Member since Dec 2010
2891 posts

re: Where to put new Technology money?


I don't think they have any exposure to medical imagining, that I know of anyway.

Right now they basically service all the major (and a lot of smaller) banks for remote deposit capture. So the chase commercial you see that allows customers to snap a picture of a check and deposit without going to the bank, that is their core business. For now anyway. The adoption of this seems to be growing at a pretty rapid pace.

They recently were granted a patent to snap a picture of a bill and pay it with your mobile device, so we'll see how that goes.

A couple things to look into; last I saw there was a patent depute with USAA over the remote deposit capture technology. Additionally, their revenue model hasn't seemed to yield very much with the amount of deposits they have serviced. So basically, I believe they sell blocks of transactions to banks as well as the channel partners up front, and they then "re-up" when needed. This produces what their CEO calls "lumpy" earnings.

All said, I think it's definitely worth keeping on the radar.






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4918 posts

re: Where to put new Technology money?


quote:

I like MITK, but do your own DD. They are the tech. behind mobile deposits an have recently moved into the mobile bill pay space.


I work in this space. Mitek is a small piece of the puzzle and they have very little opportunity to monetize on it right now.



This post was edited on 3/25 at 11:16 pm


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TigerDeBaiter
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Member since Dec 2010
2891 posts

re: Where to put new Technology money?


Do you mind elaborating a little on why?





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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4918 posts

re: Where to put new Technology money?


the lawsuit with USAA is a huge albatross around their neck.

Currently they are locked into contracts that for the most part pay them peanuts.

long term check volume is declining so while mobile RDC is a great tool now it remains to be seen what the long term future is.

I'm not saying dont invest in MITK as I think they're an interesting company with a lot of potential but that is the bearish thesis and right now it is more concrete than the bullish thesis.






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4918 posts

re: Where to put new Technology money?


Bump: would love to hear a different/opposing opinion.







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Poodlebrain
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Way Right of Rex
Member since Jan 2004
15617 posts

re: Where to put new Technology money?


quote:

A couple things to look into; last I saw there was a patent depute with USAA over the remote deposit capture technology.
I hope USAA Federal Savings Bank doesn't have to change its Deposit At Home feature. I use it routinely. I love that deposits are available immediately.






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XanderCrews
LSU Fan
Member since Mar 2009
309 posts

re: Where to put new Technology money?


I know I should not say this buuuuuuuuuuutt.....
I would never even deposit a 7 dollar or 12 dollar or even up to 40 dollar check I got in the mail just because I am lazy and hate the brick and mortar setup. So when iIgot the USAA mobile deposit app, I started depositing my arse off Jerry Seinfeld residual check style. CSB

The mobile deposit is the tits.






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C
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Member since Dec 2007
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re: Where to put new Technology money?


quote:

I hope USAA Federal Savings Bank doesn't have to change its Deposit At Home feature


Isn't USAA challanging the other companies patents; not the other way around?






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TigerDeBaiter
LSU Fan
Member since Dec 2010
2891 posts

re: Where to put new Technology money?


As I stated above I agree with all the bearish arguments against owning the company, but I also think there's tremendous potential. The USAA thing is really a black eye right now and no update on the matter is certainly worrysome.

I havnt seen the numbers on the decline of paper checks that you mentioned, but logic would tell you that's the case. That said, I think checks will always have their place, especially with the "under banked" folks.

On the contrary adoption rates for RDC are rising every year and are projected to reach around 30% by 2016. Mitek currently has agreements with over 500 financial institutions last time I looked, including most of the largest retail banks. And I believe less than half of them have actually launched the service. This tells me there's still tons of room for growth. The sad part is, as you mentioned, the revenue model is/was an absolute failure. I don't know if this is something they can change now or not.

Mobile bill pay is the next step for the company, and so far only US Bank has launched. It'll be interesting to see the adoption for that service. Fortunately the model for that service is going to be "different" per the last CC. Certainly a buy an hold for a while stock.






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4918 posts

re: Where to put new Technology money?


yea I cant disagree with anything in your post. it blows my mind how they can make so little money off their deals but like I said the image recognition piece of the RDC puzzle is REALLY small.

I'm surprised that a company like NCR hasn't just gobbled up MITK.






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