MRI Interventions Inc. (OTCBB:MRIC) Spikes On Twitter Hype

Twitter hype pushed MRI Interventions Inc. (OTCBB:MRIC) 22.50% yesterday – but will its new found momentum be short lived?

Truth be told, it’s somewhat surprising that MRIC managed to trade $309 thousand worth of stock in a single session, while being pushed up just by some twitter touting. Then again, DailyStockPicks, Red Scourge and Stocks On High Alert have quite a few followers among them, and evidently some of these investors were willing to take the bait. By the end of the session, 427 thousand shares of MRIC stock had changed hands.

But do investors really know what they bought?

They should, because the company’s latest financial report, for the period ended June 30, 2015 hit the web just three weeks ago and is still fresh enough to give investors a good idea of the company’s current situation.

Then again, if more of the people that now jumped on MRIC stock had really taken a look that 10-Q, it’s unlikely that MRIC would have been able to jump. After all, the announcement of the numbers contained in said report was the reason the ticker crashed as horribly as it did a month ago, and there was a good reason for that crash:

• Cash and cash equivalents – $ 3.5 million
• Total current assets – $6.2 million
• Total current liabilities – $9.4 million
• Quarterly revenues – $825 thousand
• $7 MILLION in Net loss for the six months ended June 30, 2015

These figures are obviously inferior to what the company showed in the previous quarter. Both its cash and current assets appear to have dwindled significantly, while its liabilities are still close to 10 million, and it is still racking up horrible losses.

One thing MRIC has going for it is the fact that its shares outstanding have not changed substantially since March 13, 2015. However, a quick check reveals that 17 million of its 75 million shares currently outstanding have been issued between November 11, 2014 and March 13, 2015, so MRCI is hardly a stranger to dilution.

Long story short – MRIC has more money than most other medical OTC markets penny stocks, but the fact that it rose on twitter touts alone puts it in a precarious situation. Its lack of success in the struggle to make ends meat borders on the pathetic – and as we all know, a company that can’t win investors over with achievements has very little chance of keeping any explosive market cap gains. As the old saying goes – let the buyer be ware.