This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How WhatsApp Affects Monitise; Shorting Tesla: Best of Kass

NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among the posts this past week was an entry about the effect of Facebook's acquisition of WhatsApp on Monitise and reasons to short Tesla.

Please click here for information about subscribing to RealMoney Pro.

The Global Economic Recovery Is Foundering

Must Read: Catalyst Stocks, A Defiant Tesla: Jim Cramer's Best Blogs

Originally published on Thursday, Feb. 20 at 10:40 a.m. EDT.

The acquisition of WhatsApp underscores  Facebook's  (FB - Get Report) commitment to social, messaging and photos -- the three core components to the social Web.

There is an important read-through to the value of Monitise in a world of increased social engagement. The deal validates the strategic opportunities for banks/merchants to generate new revenue streams out of mobile, which is exactly what Monitise is positioned to help customers with.

One can argue that the WhatsApp deal directly exposes the value of Monitise.

Indeed, one can argue that Monitise's strategic value has more than doubled after the WhatsApp deal.

To most, there is no greater engagement than the concern over money. And Monitise sits squarely in the epicenter of the mobile payments industry.

Monitise has spent over 10 years laying the rails for growth. It is now unlikely that a meaningful competitor will emerge and challenge the company's growing market position, which has the endorsement of Visa (V - Get Report).

Compare Monitise's experience with NatWest, in which the average customer looks at his/her bank account an average of 27 times a month.

In yesterday's webcast, Monitise's CEO made it clear that the company is well positioned (in an expanding joint venture basis) with many of the leading financial intermediaries in the world. Indeed, the company could substantially beat revenue forecasts this year if it elected to increase front-end fees at the expense of back-end participation. Intelligently, the company is electing to think long-term and is favoring the latter approach and strategy.

Consider that, in the fullness of time, Monitise has the potential to achieve several hundred million users, paying far more than say Twitter (TWTR - Get Report) or WhatsApp are paying on a yearly basis.

Yesterday's deal underscores that if Monitise's engagement strategy and new business endeavors are successful, the company will be worth a lot more than it is today.

Though Monitise's shares have doubled since July 2013, the best might yet be ahead for the company's shareholders.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs