Durham, North Carolina-based medical device business Asensus Surgical (NYSEAMERICAN:ASXC) had an eventful first quarter of 2021. So did the folks who held ASXC stock, as it was a wild three months.
As we’ll see, there was a massive surge in the share price, followed by a sharp retracement. At the same time, the company underwent a rebranding while venturing into new geographies.
Today, you can pick up shares of ASXC stock at a discount to its prior peak price. Or you can hold onto the stock if you already have a position.
The company’s outlook is bright and the market seems ready for the groundbreaking Senhance System. It could only be a matter of time before the stock price turns around and breaks out to new highs.
ASXC Stock at a Glance
On Feb. 23, TransEnterix announced its intention to change the company’s name to Asensus Surgical.
This was part of a major rebranding effort as the company seemed to want to focus more on its digital laparoscopic platform known as the Senhance Surgical System.
With all of this came a stock ticker symbol change, as well. TRXC transitioned into ASXC stock.
The share price closed the first trading day of 2021 at around $1.17, so this is definitely a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock with an under $250 million market cap.
However, during the first couple of months of the new year, the bulls would attempt to push TRXC/ASXC stock out of penny-stock status.
On Feb. 10, the share price reached a 52-week high of $6.95. Unfortunately, that trajectory wasn’t sustainable.
The ticker symbol officially switched over to ASXC on March 5. By that point, the stock was already in a state of decline.
At the end of the trading session on May 17, the stock settled at $1.76. This presents an opportunity to buy at a reduced price, but as we’ll see, there are also reasons for current shareholders to maintain their positions.
Contributing to the Top Line
To sum up Asensus’ business model, the company makes “smart” (i.e., machine-learning-enhanced) robotic medical devices that are used in surgical procedures.
As InvestorPlace contributor Joel Baglole explains, Asensus’ products include “a robotic surgery system that allows up to four arms to control robotic instruments and a camera during surgical procedures.”
But the company’s best-known product is its robotic laparoscopic surgical platform, the Senhance System. This, for all intents and purposes, is Asensus’ real moneymaker.
Reportedly, the Senhance System uses augmented intelligence to “provide unmatched performance and patient outcomes through machine learning.”
There’s enormous potential here for the Senhance System to be a game changer in the specific niche of digital laparoscopy.
Moreover, the Senhance System seems to be contributing to Asensus’ top line. For the three months ending on March 31, the company reported revenue of $2.1 million, $1.3 million of which can be attributed to the Senhance System.
Branching Out Globally
Impressively, more than 500 procedures were performed globally using the Senhance Surgical System.
Plus, on March 3, Asensus announced that the company had “received an additional FDA clearance for the Senhance Surgical System which allows for indication expansion in general surgery in the United States.”
But don’t get the wrong idea — this isn’t limited to the U.S.
Indeed, there are clear indications that Asensus and the Senhance System are going global.
So far in 2021, Asensus has signed two new agreements with two hospitals in Europe. The company anticipates that both of these new programs will be initiated during 2021’s second quarter.
Additionally, a hospital in Asia purchased a previously leased Senhance System at the end of the lease term.
On top of all that, Asensus recently disclosed that LAKUMED hospitals have entered into an agreement to lease and utilize a Senhance Surgical System.
As a result, the Senhance System will be utilized at Germany’s Landshut-Achdorf hospital.
Skeptics might claim that Asensus is highly reliant on its Senhance System. There may be some truth to that.
But then, there’s no question that the Senhance System has real medical breakthrough potential on a global scale. It’s also a strong revenue generator, and that’s good news for ASXC stockholders.
This stock gets a B in my Portfolio Grader.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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