MRI Interventions Inc (OTCBB:MRIC) Jumps Back Above $1

Back in late-April the stock of MRI Interventions Inc (OTCBB:MRIC) surged to new record price ranges posting its current 52-week high of $1.46. Since then, however, the ticker has been coming down the chart wiping a significant portion of its gains. Even though the downtrend seems to have slowed down during the last couple of sessions MRIC still dropped below $1 this Monday.

When the market opened yesterday the performance of the stock wasn’t much different and for more than half of the session it stayed in the red sliding to a low of $0.95. During the last hours of the trading day, however, not only were MRIC able to recover but at the time of the closing bel they were sitting at $1.02 for a gain of 3.4%. The majority of the daily volume of 244 thousand also got traded during the upswing. Will the stock manage to stabilize around the 1 dollar mark though?

MRIC is not one of the typical pennystock companies. They have real products, stable operations and respectable financials. Two weeks ago the company submitted its financial report for the first quarter of 2015 and it contained the following numbers:

• $6.4 million cash
• $9.1 million total current assets
• $5.6 million total current liabilities
• $1 million total revenues
• $3.9 million net loss

The balance sheet clearly shows that MRIC are still far away from becoming a profitable entity. That doesn’t mean that they are not making progress – the generated revenues for the quarter were 23% higher than the same period last year. The sizable cash position should be sufficient to keep the company going at least through March 31, 2016, without the need of new external financing.

Another huge plus is the fact that MRIC have not been forced to take on any toxic debt and as a result the issuance of shares has not gone out of control. In fact, between January 1 and May 5 less than 40 thousand new shares were issued, an extremely rare sight in the world of pennystocks.

Sitting at $1.02 per share means that at the moment MRIC command a market cap of over $76 million which may be viewed as a bit inflated. Long-term investors should also take into account that MRIC have a senior secured note in the amount of $4.3 million that matures next April when the company will have to pay the principal and the accrued interest in a single installment.