Penny Stock Shares Swing to Loss; Micro Imaging Review
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    Stock Alert for Micro Imaging Technology Inc. (MMTC)

    Micro Identification Technologies Inc. (MMTC), formerly Micro Imaging Technology, is a California-based company that has developed and patented a system that revolutionizes the pathogenic bacteria diagnostic process and can annually save thousands of lives and tens of millions in health care costs. The Company’s Rapid Microbial Identification System identifies bacteria in minutes, not days, and at a significant per test cost savings when compared to any conventional method. It does not rely on chemical or biological agents, conventional processing, fluorescent tags, gas chromatography or DNA analysis. The process is totally green requiring only clean water and a sample of the unknown bacteria. The Company believes that revenues for all rapid testing methods exceed $5 billion annually, with food safety accounting for more than $3.5 billion.

    Share Statistics (18-Aug-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol MMTC Revenue, $Mn 0.02 0.00 0.0% 0.00 0.00 0.0%
    Current price $0.01 Gross marg. 50.0%
    52wk Range: $0.01-$0.08 Oper. margin -1345.2% -1078.7%
    Avg Vol (3m): 427,136 Net margin -16600.0%
    Market Cap. 3.32M
    Shares Outstanding 301.49M EPS, $ -0.04 -0.02 -50.0% -0.01 0.00

    Source:, SEC Filings.

    Investment Highlights

    Shares of MMTC lost 28% in the last week, though the stock achieved gains of 892%in the last 30 days. Shares have gained 63% since February 2011.

    The stock traded as much as 15.8% higher on Thursday, on heavy volume of more than 26.73 million shares.

    Late last month, the California-based company issued a press release announcing its long-term equity alliance with EPIC Corp. (PINK: EPOR).  The report said EPIC has committed to purchasing a substantial equity position in MMTC and, as a health care products supplier, will receive the benefits of MMTC’s revolutionary technology.

    MMTC has developed and patented a Microbial Identification System that revolutionizes the pathogenic bacteria identification process and can annually save thousands of lives and tens of millions in health care costs. The MIT 1000 System is believed to be the fastest and most inexpensive bacterial identification system available; identifying bacterial strains in less than five minutes, at a cost of less than $0.10 per test and extremely easy to operate. The MIT 1000 System has been certified by the AOAC Research Institute (AOAC RI) as a test method for Listeria, one of the three pathogens that are responsible for most of the worldwide food contaminations.

    The Company is in the process of preparing the MIT 1000 System for further certifications for the identification of both Salmonella and E. coli later this year. This will give the MIT 1000 System the certified ability to identify all “three of the major infectious pathogens” within five minutes and with a single test.

    MMTC chairman Michael Brennan commented: “The agreement with EPIC will provide us with needed funding now that we have entered our production stage and provides a partner that is very familiar with the healthcare industry. This will enable MIT to approach other markets in healthcare in addition to the $5 billion food safety segment.”


    Financial Summary

    MMTC had no sales revenue during the six months ended April 30, 2011.

    The Company’s research and development expenses for the three and six-month period ended April 30, 2011, decreased by $20.65K and $26.63K, respectively, compared to the prior year. These expenses arise from the program that the Company initiated in December 1997 to develop the micro imaging technology for detecting and identifying contaminants in fluids. The decrease reflects reductions in expenditures across the board, particularly in consulting and employee benefit-related expenses.

    Sales, general and administrative expenses decreased by $86.45K and $152.60K for the three and six months ended April 30, 2011, respectively, compared to the prior year period due, primarily, to a decrease in consulting fees paid with common stock.

    The Company realized minimal interest income during the six months ended April 30, 2011, as investment capital was utilized to sustain operations. Interest expense for the three- and six-month periods ended April 30, 2011, decreased by $441,357 and $433,789, respectively, compared to the prior period. The difference reflects the decrease in the costs of borrowings conducted by the Company during fiscal 2010 and the amortization of interest on beneficial conversion features on debentures issued during that time frame.

    MMTC recorded the minimum state income tax provision in fiscal 2011 and 2010 as it had cumulative net operating losses in all tax jurisdictions.

    Financial Strength (18-Aug-2011)




    S&P 500

    Quick Ratio (MRQ) 0.02 2.29 1.32 0.75
    Current Ratio (MRQ) 0.07 2.67 1.66 1.10
    LT Debt to Equity (MRQ) 24.60 47.80 112.41
    Total Debt to Equity (MRQ) 37.15 70.48 152.10
    Interest Coverage (TTM) -1.34 0.56 0.33 23.01

    Source:, SEC Filings.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Technical Analysis


    MMTC is trading above its 20-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

    MMTC’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    The MACD for MMTC currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Aug18-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    N-Viro International Corp. NVIC 1.55 9.25M n/a n/a n/a n/a
    Commodore Applied Technologies Inc. CXIA 0.03 243.48K n/a n/a n/a n/a
     Bion Environmental Technologies Inc. BNET 3.30 42.13M n/a n/a n/a n/a
    Seychelle Environmental Technologie SYEV 0.30 7.77M n/a n/a n/a n/a
    Laboratories & Research Median       17.45 n/a 2.99 n/a
    Micro Imaging Technology Inc. MMTC 0.01 3.32M n/a n/a n/a n/a

    Source: Thomson Financial

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