Cramer says investors can buy shares of this software company as a speculative choice
CNBC’s Jim Cramer said on Monday that investors had his permission to buy shares of software company Mitek Systems on a speculative basis.
“Mitek is really cheap on an earnings basis, which is why it’s… the one I’m willing to bless for speculation in what is otherwise an extremely hostile environment,” said the “Mad Money” host.
“I think these guys made a ton of smart decisions and business is good,” he said of the company, which offers digital identity verification and credit deposit services. mobile checks.
To illustrate his point about the fintech industry, Cramer noted that other companies in the sector such as Affirm and Block have been crushed by the market well below their highs.
He also mentioned that Mitek is involved in a lawsuit seeking a court ruling that its technology does not infringe the United Services Automobile Association’s mobile banking patents. The tiff regarding the latter’s patents has been going on for several years, according to Reuters.
Still, Cramer said the company has delivered strong performance in its past quarters and made acquisitions over the past two years that set it apart from other pandemic winners.
Shares of Mitek are down 52% year-to-date and hit a new 52-week low on Monday.
“Just leave room to buy more into the weakness, because we have no idea when it will stop falling, just like we have no idea about the rest of the market,” Cramer said. “It’s neither worse nor better.”
Register now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.