Neither the expensive promotion, nor the announced optimistic updates on MabCure cancer diagnostic technology could make the share price appreciate in a stable manner. After the promotions were disclosed at the beginning of the month, MBCI direction has been always downwards. Though, almost ten days after the latest press release and nearly a week after the company filed its third quarter results, MBCI share price surged surprisingly up yesterday.
The stock made a gap up on its chart and closed the market at $0.721, marking a total increase of 20.17% and a trading volume of 1.23 million shares. Maybe it is not so strange that the shares are getting buying interest on no news, as it looks like they are aggressively promoted these days.
Officially, the promotion was disclosed at the beginning of the month and it is compensated with the impressive $850,000 in cash. To justify that payment, the promoters have actually put some effort to come up with a extensive overview on MabCure and its targeted market. The research provided might be useful for some traders, but it still looks too offensive for a company that actually plans to launch a real product in the observable future.
Last Monday, MabCure announced it has made a panel of 10 monoclonal antibodies against prostate cancer, which the company intends to use for the development of a blood or urine test to diagnose prostate cancer in its early stages. The third quarter report shows though, that as of September 30, 2010 the company had exhausted almost all of its cash reserves, which now makes the percentage of the intangible assets from the total assets even higher than before. The tangible value of MBCI has now become negative and the company has yet no sources of revenues.
