Nelly Shishkova

MRV Communications Inc. (PINK:MRVC) Cannot Define Its Chart Position

by Nelly Shishkova January 11, 2012
MRV Communications Inc. (PINK:MRVC) is not able to define its chart position these days. The stock price has been constantlyMRVC_chart6.png wandering up and down, looking quite unpredictable.

After a price jump on Monday, yesterday MRVC was back down by losing 0.56% of its price on a considerably high traded volume.

Apparently, the latest news on MRV provoked some controversial reactions among traders, which reflected on the stock price at once.

During the past couple of days, the company reported the intent of two members of its Board of Directors to resign, effective this month.

The news might have bothered investors to some extent and MRVC stock price fell down again. Today, the company tries to pump up the stock price by a piece of positive news. However, the resigning intentions of directors don't inspire much confidence. Especially when the financials of MRV remain discouraging.

MRVC_logo.gifAs 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.

Despite these facts, MRV keeps encouraging traders to invest in the company, while taking more cautious approach in their capital expenditures resulting in order delays, slowing deployments, and lengthening sales cycles.

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