Last June, on the 14th to be exact, Microbot Medical Inc. (NASDAQ: MBOT) issued a release in which it confirmed the United States Patent and Trademark Office (USPTO) has granted patent number 9,675,748, which covers a device for the prevention of shunt stenosis. MBOT said in that same announcement that it had also filed with the USPTO, a Continuation Application to further establish and enhance the Company’s innovative solutions for preventing shunt stenosis. How did investors take the news? Well, the stock closed down 8% on the day. We can never be sure that MBOT failed to close in the green because of the news, but we are at least certain that the news didn’t have the impact many might have hoped.
Fast forward to Thursday, July 20 and we have a resurgent MBOT that managed to open at 1.12, eventually rallying to a high of 1.34. Unlike the anticlimactic day of June 14, MBOT didn’t finish the day in the red. The stock instead closed strong to finish the day up 18% at 1.33.
A few things to keep in mind. MBOT is a stock that has seen the absolute best and worst of times. The 52-week high for MBOT is an unbelievable 26.91 and the corresponding low is 1.07. As one can imagine, the current valuation which pegs MBOT below 2.00 means that it is 95% or so below the 52-week high. A massive decline for sure and one investors will be hoping is about to see a change in terms of rebounding. Another thing to keep in mind is that analysts have been rather bullish on MBOT. According to one source, the composite opinion on the price target is 198.00. That’s not a misprint.
If the price target for MBOT is that high then it means that the stock might be one of the most undervalued opportunities right now.