It is important to remember the previous discussions of MCLN not producing PR's related to "system contracts" and also for the many reasons offered by the Board. However, it is disingenuous to issue a press release (PR's) literally seconds after releasing sub-par 1st qtr financials that really indicate the many failures of management in accomplishing their so-called actual goal of 'maximizing shareholder value'.
The 1st qtr. 2010 financials illustrate the clear failure of management to stagger the completion of at least ONE "system contract" INTO 1st qtr. Obviously, management has difficulty "multi-tasking", as they concentrated solely on 'non-revenue producing activities' for the entire qtr. By such wanton deferment necessarily means an interruption to any semblence of "maximixing shareholder value".
Penny stocks are also about 'perceptions', especially when addressing the early states of a young company's development. Management has not placed a "value" on this important "asset". It would have been important for management to strategically ensure the initial sales of at least one to two systems in 1st qtr 2010, so that at least 60% of the revenue could be booked in that qtr. If we have truly entered the "Big Boy Management League" as some believe, then management would have known what revenue targets were important to obtain when contrasting against 1st qtr. 2009 results. This is not 'rocket science'; it's just plain old good common business sense, especially if the acknowledged goal of management is really about "maximizing shareholder value".
I certainly believe MCLN is a good "long-term position stock" for future profitability, but if management had ensured some level of comparability between this 1st qtr. and the one contrasted against a year ago, then we would not have to be talking about why it is a good long term position as the fruits would have begun to be realized this very day! This idea of increasing the pps is not only to the advantage of the investor; it is central to the welfare of the company as it reduces the cost associated with equity borrowing along with a plethora of other obvious beneficial examples. Remember, management is telling us about another 10.5 million dollars in borrowing at so-called 'good' terms that are equally undisclosed. If they were that 'good' then the terms would be disclosed.
When someone contrasts the compensation paid to management with stock, I think they will realize the few employees left standing are receiving tremendous financial benefits. It would also have been helpful for management to have booked these deferred "gifts" into 2nd qtr. financials rather than electing to receive their 'compensation' in such a lousy revenue producing qtr. as 1st qtr. has proven. It is an insult for management to state that the 'loss' would have been far less if they had not occured in 1st qtr. Really!! If Management had actually produced a two to three year business forecast, then they should have realized that there are 4 qtrs to a financial year. This fact becomes crystalized when management continues to 'beat the drum' of "100% compounded annually" over-and-over again. What are we to expect, 100% compounding in 4th qtr. 2010?
Am I disappointed? Absolutely! Did I have to be? Absolutely not!
