Replies to post #7544 on Value Microcaps Free-For-All

[shmoopy38]

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.

[Will Lyons]

Pardon the intrusion by a lurker. Nanotechnology is very powerful but is still in its infancy, sort of like where the semi industry was at the time of the invention of the transistor!
MFIC is one of a very few companies that are providing the tools for research and production of nano-materials. It is also sufficiently profitable and cash flow positive so that cash burn is not an issue. In that respect it has better fundamentals than many start ups that sell at infinite p/e ratios.
Smoopy, and a few others on this thread, myself included, are guilty of being a bit ahead of the curve. We see the future and it lies ahead!

The fundamentals are very favorable for a few profitable, established leaders. The risk/reward ratio is very favorable, especially as prices have come down from the highs of last year.

All three of the NANOs smoopy mentioned, namely MFIC SOTK and CVV have one thing in common that may account for the lack of
attention, but which may prove very profitable, and that is the rather small capitalization, float, and daily volume. It is difficult to trade more than five hundred or a thousand shares without moving the price so liquidity is a problem and many micro players like to deal in 5000 blocks of penny stocks.

If you want to check it out try to accumulate another of one of the group that I don't like to mention [DYSL] because it hardly ever trades and has a bid ask of 0.60-75 on a good day but frequently the spread is greater and no trades per day is the norm!

[Will Lyons]

amaziingly now the spread on DYSL is .0.60 bid and 0.90 ask, and no volume Otherwise its a great one for the long haul!