MRI Interventions, Inc. (OTCBB:MRIC) Sold Off on Record Volumes

MRI Interventions, Inc. (OTCBB:MRIC) was just drifting at a nice price range when it followed the fate of many biotech tickers- a sudden crash, on what was perceived as disappointing news. MRIC slid down 12% to $0.92, but what was worrying was the record selling volume, as more than 500,000 shares were shed, for dollar volumes of $456,000. MRIC is a boutique choice, outside the more active group of pharmaceutical tickers, and it has not taken up the marijuana business model, not even in word only. MRIC0512.png

Still, the company has an ambitious business model that brings together a small band of investors. MRIC works on developing a usage for MRI brain imaging to help surgeons perform minimally invasive procedures based on accurate diagnostic tools. To perform this task, MRIC is equipped with the following financials: MRIC0512.png

  • $3.51 million cash
  • $5.9 million total current assets
  • $10,09 million total current liabilities
  • $2.91 million product revenues
  • $7.08 million annual net loss

Unfortunately, those results speak of a large-scale activity that is also proving very expensive at the moment. It is no wonder that investors would be disappointed, as success for this company may take quite a long time. The positive thing is that MRIC has a clear-cut business model, but in the past years, its stock price only sank. The trading is very slim compared to other tickers, and there is no information of the free float of shares. With only 58 million shares outstanding, MRIC also has a better structure than most OTC companies.

Investors’ forums are rather inactive for this company, as most investors are interested in potential long-term partnerships and the future success of the company. Also, most insider transactions include acquisitions at close to market prices, as insiders hold about 20% of the company’s stock. Several funds own around 1% of the outstanding shares, which may be a positive sign for trust in the company’s future.

Still, MRIC may be problematic due to low-volume trading, as well as its relatively high price. Also, the respectable position does not preclude significant shakedowns like the one yesterday.

MRIC in a way resembles some of the developments for Titan Pharmaceuticals, Corp. (OTCBB:TTNP), a well-padded company that nevertheless crashes whenever the good news stop flowing. TTNP has a sudden spike from its lows, climbing up to $0.58 in the early trading this Monday. Unfortunately, volumes for this ticker remain slim, as only a few investors hang on after the shakedown at the beginning of the year, when the FDA had some bad news for TTNP‘s drug pipeline.

MultiCell Technologies, Inc. (OTCMKTS:MCET) is the other risky biotech bid, this time moving in the double-zero range. In the past two months, MCET had a more lively run, but only moved between $0.001 and $0.002. Still, that was enough to cause a series of gains and losses.

If you like an OTC company for its longer-term potential, it is best to be aware that daily fluctuations may always happen, so be able to afford losing your investment in whole or in part.

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