As you know there is no certainty when investing, particularly when dealing with a microcap stock and especially so with a disruptive technology like nanotechnology. It remains to be seen when and if MFIC's MMR systems for fast chemical reactions to produce nanoparticles, nanomaterials and nanostructures with extremely high yields are sold. MFIC lost money in 2005, which was not originally anticipated, because they were investing heavily in R&D to develop the big ticket MMR's and could not land any sales. They have smartly changed their game plan which has led to reduced R&D (as a % of sales), raised pricing of its products by 10% on average and improved its profitability, balance sheet and cash position. Over the past twelve months MFIC has been at breakeven cash flow but in the past 1.5 months cash has gone from $1.0 Million to $1.3 Million. From my view, I remain enthusiastic about the risk/reward ratio for MFIC and its $13 Million market cap whose fundamentals are improving and whose technology is potentially disruptive.
