MMTC-A Scam?
I've been a penny investor for some time now. Sometimes you win and sometimes you lose. I know one of the guys on here has been very critical of MMTC. So far, I've seen no evidence to suggest MMTC is a con. That's not to say we'll all be multi-millionaires because many a good idea/company has been run aground by incompetent management. But so far it meets what I look for when finding a cheap "diamond in the rough".
Before I continue, here's the necessary disclosure stuff: I am a private investor who is long MMTC shares. I am not affiliated with the company, its board, officers or employees in any way other than my long position of MMTC equity. I am not a day trader nor am I blog/msg board "stock manipulator"
Obviously, the biggest risk with pennies is the entire operation is a con. It's so easy to register a publicly traded company that the regulatory and law-enforcement agencies simply cannot keep track of every single one of them. Unfortunately, this gives con artists a fertile habitat in which to flourish. But here's what I like about MMTC.
1. A real product that does a real job. You can see, touch, smell, taste (not that you should put your tongue on it) the MIT 1000 machine. It's been tested by a legit independent organization out here on the east coast. So the machine itself is real. It isn't a "prop" made from wood and plastic for marketing brochures in a con job.
2. This is patentened, cutting edge, innovative technology. This is something that nobody else has and is brand new technology. There has been virtually no innovation in the microbial ID industry over the last few decades. Labs are still using the same methods they've been using for the last 20-30 years. This is an industry ripe for innovation.
3. Officers taking payment in stock versus cash. The recent Disclosures of Beneficial Ownership substantiate that Mr. Hollander is accepting shares of MMTC stock versus cash money for services rendered as CFO. No con artist in his right mind would ever accept stock as compensation knowing the stock is fradulent and destined to become worthless. In fact, after Mr. Hollander's 30 Apr 2012 transaction that position has actually declined in value. Con artists want payment in cash because that's how you defraud investors and get out of dodge before the town wakes up.
4. Convertible Debentures. Any company developing an emerging technology such as this laser microbial ID system takes on a large quantity of debt. That's just how you get the funding you need to develop and then market whatever your gizmo is. One of the weaknesses of MMTC is they've taken on a lot of debt...A LOT OF DEBT. But management is handling this the best way: getting creditors to convert their debt into equity. Here's the concept: back in the day when Sam Walton was starting a little sumpthin' called Wal-Mart would you rather be his creditor or his business partner? The correct answer is "business partner". As a creditor you only get back what you're owed i.e. your principle and the measly bit of interest. But if you were Sam's business partner and bought a large stake in the infant Wal-Mart business you'd be a multi-millionaire or even a billionaire today. Management is convincing creditors to become owners because they believe in their product. Creditors are accepting because they see the up-side potential of this innovative technology and want to be MMTC's business partner not their creditor.
5. The Alpine Lawsuit. Unfortunately we're a litigious culture these days and people think any little oversight or wrong entitles them to sue somebody for billions of dollars. All of the negative comments are part of the plaintiffs complaint and are NOT findings of fact by a court of law. It's looking like Alpine was the original financial company MMTC wanted to use to float their convertible debentures. Then for whatever reason decided not to use Alpine. Alpine got upset and decided to sue MMTC for going with another financial company. Unfortunately these things happen. As for Mr. Nunez's agreement not to work for an NASD company, that too is unsubstantiated. But sometimes people enter into these agreements because of a misunderstanding and they do not have the resources to mount a full legal defense against regulatory bodies. An NASD company means a financial institution not a private company like MMTC that is not a financial institution. The agreement is NOT a finding of criminal wrong-doing such as a guilty verdict from a judge/jury or an agreement to plead guilty.
Well those are reasons why I very much like MMTC stock. I'm hoping this is the next eBay or Apple. Maybe it will be maybe it won't. That's why it's called investing because there is risk. But it's better than putting your money in a savings account or CD that doesn't keep up with inflation or wasteful consumption of your money.
Just my $0.02.
AI
