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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.

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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.

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