Mikoh - MIK Another pilot announced, page-2

I've had a reasonably in depth debate with Peter Atherton over the purchase of the Mikoh Imaging Systems technology.

In my opinion if you are a small company with no positive cash flow then it is ridiculous to undertake an aquisition on any scale at any time when the best prospect for the company, Smart & Secure is still not commercial.

Although the board did not agree with me on this point they did go to genuine lengths to address my criticisms, concerns and suggestions. Although I look very negatively on Mikoh continuing to pursue this inkjet printing technology which has absolutely nothing to do with Mikoh US, they do seem to be taking all the right steps to develope Smart & Secure. No one can deny the potential that exists with this technology.

All emerging companies need to stay focused. Focused brings to mind all the conotations of light through a magnifying glass, that is, devoting all energy to one point, one technology, one diversion . . .you get the point. There just can't be any argument to the contrary if you are interested in running a company conservatively. If you have heaps of money then pusuing additional technologies and markets is warranted, but if you are borrowing all your money (and do not get confused that shareholder funds are essentially borrowed money, lent interest free in my opinion to companies, by shareholders, with the expectation of a return) you have no right whatsoever to pursue anything but that technology, idea or product that has the greatest chance of making the company cash flow positive.

Smart & Secure seems well and truly on the road to success but other areas of the business still need addressing. As I've said before, this is a classic high risk high return play. If you're a shareholder and serious about wanting to see this company succeed, get on the phone or email one of the board members and ask them to either dispose of the inkjet printing technology or set a date in the future when MIS will be cashflow positive. If they can't meet that deadline then they have no excuse for continuing to pursue it.

I'm interested in any opinions on this.