Nelly Shishkova

MRV Communications Inc. (PINK:MRVC) Is Crawling Up at Last

by Nelly Shishkova November 14, 2011
Finally, MRV Communications Inc. (PINK:MRVC) started crawling up. On Friday, the stock added 0.75% to its price and its MRVC_chart4.pngtraded volume substantially increased.

In fact, the chart position of MRVC has been changing a lot lately, though the stock does not look much confident yet.

Since the beginning of November, MRV has been releasing tons of good news on its activities, however, even this failed to hold the gain for longer. The latest announcement came up last Thursday, reporting that the final $75 million dividend date for the company was set for today.

If this news pumped up MRVC stock price and whether it will continue the climb is yet to be seen. Though, there are other issues facing the company right now.

Last week, MRV filed its quarterly results, which were not much encouraging. As of September 30, the company's cash and cash equivalents have increased, though the liabilities were not covered, while the accumulated deficit exceeded $1,200,681.

In May, MRV sold all of the issued and outstanding capital stock of three wholly-owned operating subsidiaries and having reviewed its cash position decided to return excess capital to shareholders through a $75.0 million special dividend this month.

MRV_logo.gifHowever, the management claims that the recent downturn in global markets has affected the company's revenues and operating results, particularly on the Italian market, and that conditions may worsen.

Nevertheless, the team encourages traders to invest in MRV, while taking more cautious approach in their capital expenditures, resulting in order delays, slowing deployments, and lengthening sales cycles.

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