Category Archives: $AIM:MONI

$AIM:MONI (Monitise) worth speculating now it has decided to stay independent? FV…

UK Mobile payment provider has seen it stock drop from above 50p in 2014 to just 14p today.

It was up for sale and then decided it will stay independent.

It is forecast not to make any signfiicant positive EPS for another 2 years – question is can it survive that long – according to the balance sheet there is 129mm in Cash.

FV=45p but this assumes it will survive and there will be no dilution from a rights issue.

Mobile payments is a hot space with Apple and FaceBook entering the market – this may make a small provider like Monitise irrelevant.

if you decide to take a risk, suggest the following trade:

Buy here at 14 – Take profit target 25, stop 9
High risk – keep position small and allow for a cash call in the form a rights issue.

2CentView does not plan to take a trading position in Monitise.

@lookatBowen – re $MONI FV=60-65 area (Monitise). The stock…

is in a good space providing mobile payment technology and services to banks. However, at 68 it is just above Fair Value -so as you say may have missed have just missed the boat – but at around 19x 2016 earning, not massively expensive.

So Strategy is as follows:

If you really like the company buy half or a third of your core position now.
Buy more or gain entry at the 45-50 area. Take profit/Stop loss for a 2:1 Risk reward ratio to your average price.