MFIC - The bullish case:
1. The field of nanotechnology is poised for substantial growth over the coming decades and is at the same stage as the personal computer was in the 70's and biotechnology was in the 80's.
2. This is one of the few microcap stocks that I am aware of that operates in the nanotech space and is already delivering profitable operating results.
3. MFIC's world-class products are patented and trademarked so that there are high barriers to entry in this field. Its Fortune 500 customer base is a "Who's Who" of virtually every large pharmaceutical and biotech company you can think of. 80% of its sales are to the biopharma market.
4. The co. has an installed base of over 3,000 Microfluidizer machines. While the co. attempts to market their newest line of MMR systems (top of the line systems are supposed to sell for as much as $1 Million each) which provide for extremely fast chemical reactions needed to produce nanoparticles, nanomaterials and nanostructures with extremely high yields, the co. has found that it can modify its existing Microfluidizers by adding coaxial feeds, computer controls and software to almost achieve what the MMR systems were designed to do.
5. Except for a loss in 2005, the co. was profitable from 2002 to 2004 and is again profitable in 2006 with record sales in its most recent quarter.
6. If the co. can ever begin to penetrate the market for MMR systems or its EPS begin to accelerate to meaningful levels, the present $13 Million market cap will be a distant memory. As a frame of reference, there are many nanotech stocks trading at 10 to 20 times higher market caps with no signs of profitability.
7. MFIC's balance sheet is very strong and their cash position is currently at $1.3 Million.
8. The CEO alone holds a 20% stake in the stock and Pfizer owns 6%.
