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No. of Recommendations: 4
Disclosure: I am a former investment advisor and currently own MFNX stock.

It seems to me that the sole factor driving MFNX downward is the uncertainty concerning its viability. Every day that the company fails to procure funding and approaches its July 31st deadline, the stock will drop. And, if it does not meet that deadline for the additional $350 million, the company is dead.

I know they have enough cash to run through the end of the year; I know they have a high-quality product and a niche in an enormous marketplace. But, if they cannot get $350 million now, they will not get any more money as the desperation rises. And they will hemorrhage cash until the end of this year, and that will be it. They still need another billion or so to run the company in 2002, and 2003, when they are estimated to lose almost a dollar per share per year. Nor will there be a buyout--why pay a premium for the assets now, when without a suitor, the company may go bankrupt and its assets sold for dimes on the dollar?

Those of you who are familiar with Teligent (TGNT)--it is a similar story. Teligent hit $100 in March, recently filed for bankruptcy and its assets, post-bankruptcy, were bought by IDT Corp. All the way down, analysts and advisors swore that Teligent would be saved--with names like the renowned venture cap firm Hicks, Muse, how could it fail? But it did, and unfortunately for those of us long MFNX (myself included), MFNX will too without this financing. As of today, the company has six days to save itself. And counting.
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