2015 is shaping up to be a yearMonitises(LSE: MONI) shareholders would rather forget.
Over the past six months, the companys shares have declined by a staggering 81% and over the last 12 months, Monitises shares have slumped by 89%.
These declines are enough to test even the most experienced investor. Unfortunately, during the past seven days the sell-off has only intensified.
Giving up?
Its not 100% clear why the sell-off of Monitise has intensified in recent days. However, July has been an extremely testing month for the companys shareholders.
During the past 30 days Monitise has issued yet another profit warning, and Visa Europe, a long time supporter of the company, has announced that it is planning to sell its stake. Moreover,hedge fund Omega Advisors has been aggressively selling its Monitise stake this month, and Apple Pay has been rolled out across the UK.
Still, its difficult to pin the declines on just one factor.
Selling by Omega Advisors, a majority shareholder, could be blamed. The fund sold around 35 million shares between 7 July and 22 July, but no trades have since been reported. Monitises shares have lost around a third of their value since Omega stopped selling.
The value of disclosed short positions doesnt offer any clues, either. According to figures, the value of Monitises shares out on loan to short sellers stands at one of its lowest levels in 12 months.
And as theres not much concrete evidence to establish why Monitises shares are declining, it could be the case that investors have just lost patience with the company after the deluge of bad news.
Time to sell
So, is it time to join the crowd and sell Monitise?
Well, the recent declines are troubling but theres no substantial evidence from which to draw a conclusion. The company is working hard to turn things around and still has several lucrative partnerships withSantanderas well asIBM. AsIve covered before, these two partnerships could bevaluable for Monitise. Also, theres a chance that Santandercould make an offerfor the company.
Santander announced at the beginning of this month that it was committing 10m to a 50:50financial technology joint-venture with Monitise. The deal will seeMonitise willbenefit from a multi-million pound upfront licence fee, with further ongoing revenues expected to be generated by the initiative. This is in addition to the companys 50% share of the business and opportunity to work with one of the Eurozones largest banks.
Whats more, Monitise has a strong, cash-rich balance sheet, although its unclear how quickly the company will use up its existing cash reserves.
Nevertheless, for the time beingMonitise remains a work in progress, and the next few trading updates will be key. Overall, while recent declines are concerning, its not time to panic. Monitise still has cash, customers and continues to work with some of the worlds largest companies.
Your own research
As usual, I strongly recommend that you do your own research before making any trading decision. Monitise may not fit your own personal risk profile. And to help you assess the company, our top analysts have put togetherthis new report from The Motley Fool.
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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK owns shares of Monitise. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.