CNBC’s Jim Cramer on Monday said that investors have his permission to buy shares of software company Mitek Systems as a speculative play.
“Mitek’s genuinely cheap on an earnings basis, which is why it’s … one I’m willing to bless for speculation in what is otherwise an extremely hostile environment,” the “Mad Money” host said.
“I think these guys have made a ton of smart decisions and the business is good,” he said about the firm, which offers digital identity verification and mobile check deposit services.
To illustrate his point about the financial technology industry, Cramer noted that other companies in the space 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 legal decision that its technology does not infringe on 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.
Yet Cramer said that the company has had strong performances in its recent quarters and has made acquisitions in the last couple of years that separate it from other fumbling 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 weakness, because we have no idea when it will stop going down, just like we have no idea about the rest of the market, though,” Cramer said. ‘It’s not worse or better.”
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