Cramer believes that this software company’s stock is a speculative investment

• Jim Cramer indicated on Monday that investors can buy shares of software business Mitek Systems as a speculative bet.
• “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.

Jim Cramer stated on Monday that investors can buy shares of software business Mitek Systems as a speculative bet.

“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.

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“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.

Cramer used the financial technology business to demonstrate his argument, noting that other companies in the space, such as Affirm and Block, have been hammered by the market, trading much below their highs.

He also noted that Mitek is participating in a lawsuit seeking a court judgment that their technology does not infringe on the mobile banking patents of the United Services Automobile Association. According to Reuters, the dispute over the latter’s patents has been ongoing for some years.

Nonetheless, Cramer stated that the company has had good results in recent quarters and has made acquisitions in the last few years that set it apart from other stumbling pandemic winners.

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Mitek shares 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.”