It's weird, talking about pumpers ... i was following MFIC last year for awhile but never bought. I knew they were into nanotech but didn't study them too much as i perceived many other better opportunities (and luckily landed a few) .... then in June after i had some free cash after hitting a home run on IPII a pumper came along on the IHub board copying a very thorough Andre726 post. A few points stood out - the company was getting ready for a Nasdaq or Amex listing; there were nearly two thousand patents citing use of their equipment; the relative undervaluation vis-a-vis other nano companies was INSANE, etc. So i took a hard look, then concluded it had good multi-bagger characteristics, so i dove in with a pretty big position.
Where did i miscalculate (in the short run, at least)? The first mistake was believing Gruverman's projections / predictions. He told shareholders sometime in May (? - not sure the exact conference call) to expect around 15% revenue growth this year, and $35-100M in a few years (he's actually STILL singing this tune, he said this at the Rodman/Renshaw conference last week). Instead we've got revenue shrinkage. Then in the July Wall Street Reporter interview he opined that shareholders should be happy with the upcoming earnings report ... instead they sold like mad upon its release.
Next, i didn't objectively ask myself why Husic was throwing in the towel. Surely these guys are pretty smart with all that capital under management, then why give up on MFIC? Chances are they gave up after a few Irvie projections were somewhat off the mark.
So now it's pretty clear i think, Irvie appears to be either an exagerrator, a BS artist or a poor prognosticator ... in either case, not a recipe for success. But at a $14M mkt cap, still need to remember, this is supposedly a nanotech company, gotta consider the overvalued peers.
Buy when they cry, sell when they yell - this might work in the next few days with plenty of crybabies and towel throwers running amok. |
