MNW - Mint Wireless
Sector: Software & Services
Market Cap: $41M
FA and TA Pick
Mint Wireless is a global mobile payment and transaction processing company. They have developed a technology platform that enables corporate enterprise to process credit card and debit card transactions via smart phones or tablets.
This stock was a favourite of many spec lovers last year because it rose from a low of 2c in July to a high of 44.5c in October. Since last October the sp has steadily decreased to a low of 7.3c (on 16 October 2014).
Recent Events
-> 16 October 2014 - The ASX issued the company with a price query letter stating;
"We have noted a change in the price of the Company’s securities from a high of 15 cents on Tuesday, 30
September 2014 to an intraday low of 7.9 cents at the time of writing today, Thursday, 16 October 2014."
Their response was the usual 'we know nothing' except for their answer to question 3;
Q3: f the answer to question 1 is “no”, is there any other explanation that the Company may have for the
recent trading in its securities?
"The Board has resolved to commence a strategic review of operations in light of the recent
share price."
The sp then went into a trading halt a few minutes later pending an announcement.
-> 20 October 2014 (Yesterday) - An announcement is released entitled "Market Update". The key points of the update are; 1) The Australian Payments Clearing Association (APCA) has certified Mint's mPos system for eftpos transactions with Remote Key Injection (RKI). RKI has to do with the activation of the tech, secure transfer of data and encryption keys. According to the update;
"Mint is the first to achieve RKI certification for mPOS solutions in Australia. ... Remote Key Injection will reduce the device activation cost significantly for Mint and its partners, it will also provide customers with a more streamlined and efficient activation
process compared to traditional (manual) terminal activation."
2) A business update on their projects with Bank of New Zealand (BNZ) and MYOB, as well as other business related updates such as mPos user statistics, further orders for devices, growth prospects based on successful deployment of eftpos, the pipeline and hopes for additional contracts.
"As at 30th September 2014, the Company had $9.5 million in total available funds to
ensure a strong financial position for future growth plans."
3) An independent committee is undertaking a strategic review to consider various aspects of the business including a review of the board and management. They address the fact that the sp has declined so significantly and state that they are working towards ensuring shareholder value is restored.
4) It is revealed that during the trading halt the CEO Robin Khuda has "stepped down" from the role as Mint's CEO.
"In line with its strategic review, the Board believes a different skill set is required at the CEO
level to adequately pursue these new opportunities..."
Mint's chairman Alex Teoh will be stepping in as interim CEO.
Share Price and TA
The share price increased from 7.6 to a high of 9.8 (28.9%) yesterday after the announcement and then closed at 8.8 (15.8% up). The days candle was a spinning top indicating a change in trend.
Today's price action brought the sp to a close of 8.8 (19.32% up) with the sp closing on the days high, another good sign. The volume traded over the last two days is quite high. The momentum indicators are also perking up and trending upwards. As the share price has been in a downtrend the RSI is only at 40.9 so the sp has a way to go before it becomes overbought. The sp has not yet crossed the resistance line of the main downtrend but I'm sure the very high volume traded will push it through.
Random Observations
In the afternoon before close there were a fair few CEXT (centre point preference matching) trades which indicates to me that sophisticated investors want in.
It's all a bit dubious, the timing of these events, management, the claims, and the share price movement but I'd say it's worth a punt (with caution).
