Put merely, Asensus Surgical (NYSEAMERICAN:ASXC) is concerned within the robotic-surgery trade. The corporate’s flagship product is its Senhance System, which is utilized in surgical procedures. However ASXC inventory’s story is a bit more advanced than that.
Mainly, the Senhance System is targeted as a lot on cost-cutting as it’s on being futuristic. As well as, ASXC inventory is one title amongst 2021’s current crop of meme shares. A penny stock firstly of the 12 months, Reddit fanned ASXC to a surge of over 900% within the first few months of 2021.
Now, Asensus Surgical shares are buying and selling within the $2.85 vary. That’s lower than half of their February peak, however nonetheless up 352% year-to-date (YTD). So, is now the time to think about an funding? It is a Portfolio Grader “B” rated inventory, so it undoubtedly has development potential. Nevertheless, the important thing to understanding the Asensus story is trying on the distinctive worth proposition of its product.
ASXC Inventory: The Prices and the Execs of Robotic Surgical procedure
First off, we should always begin our exanimation of ASXC inventory by evaluating conventional laprascopic surgical procedure to robotic surgical procedure.
Laparoscopic surgical procedure is a specialised kind of surgical procedure that makes use of tiny incisions, a digital camera and surgical devices. Surgeons are capable of full the operation with minimal chopping. Which means patients can have smaller scars and have a tendency to get well extra rapidly. In the present day, worldwide, over 13 million laparoscopic procedures are carried out yearly.
Nevertheless, the character of laparoscopic surgical procedure has made it a really perfect candidate for transformation by way of robotics. Surgeons like robotic surgical procedure for its elevated precision and ease in reaching hard-to-access organs. So, the issue with robotic surgical procedure proper now? It’s expensive. In 2017, Dr. In Gab Jeong from the College of Ulsan School of Medication in South Korea advised Reuters:
“The fast enhance in pricey robotic surgical procedure in lieu of laparoscopic surgical procedure and not using a particular benefit for the affected person is an issue that may be utilized not solely to the urological subject but additionally to your complete surgical subject […] This may occasionally result in an enormous enhance in the price of medical care that may be a big burden on the healthcare system.”
At the moment, a mean robotic surgical procedure price $2,678 greater than its conventional laparoscopic equal. However that is the place the Senhance System is available in. Asensus Surgical can win in working rooms as a result of its product is designed to ship robotic surgical procedure whereas minimizing prices.
How does it handle this? Asensus designed the product to make the most of normal, re-usable surgical devices. It additionally options an open-platform structure. This mix reduces prices of use whereas making it simpler for hospitals to combine with their present tech. Because of this, the corporate says its product makes the time and price of robotic surgical procedure equal to handbook laparoscopic surgical procedure.
Rising Above the Meme-Inventory Stigma
Sounds nice, proper? Properly, there’s now additionally a little bit of a complication with ASXC inventory: its meme-stock standing.
InvestorPlace contributor Robert Lakin offers a great overview of the rollercoaster ASXC has been on in 2021. Plus, even apart from this volatility, merely being categorized as a meme inventory makes buyers cautious of it within the first place.
That mentioned, one huge transfer that has helped add a way of legitimacy to ASXC inventory — combating the implications of the “meme-stock” label — was this title’s recent addition to the Russell 2000 Index. Asensus Surgical’s CEO, Anthony Fernando, summed up the significance of the event:
“This milestone is a testomony to our exhausting work to create worth for our stockholders by our technique and convey the Senhance System’s transformative expertise to surgeons, hospitals, and sufferers globally.”
Backside Line on ASXC Inventory
All advised, Asensus Surgical is a wager on the way forward for robotic surgical procedure — particularly, the flexibility of its Senhance System to spur adoption by decreased prices. Furthermore, in its first-quarter earnings, the company showed it is making progress, with two extra hospitals signing agreements to put in the product. Plus, a 3rd hospital determined to purchase its beforehand leased Senhance System outright. And the cherry on high? In Q1, income greater than tripled year-over-year (YOY).
So, when you’re okay with using out ongoing meme-stock volatility, it’s greater than clear that ASXC inventory has long-term development potential.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Analysis Employees member primarily liable for this text held (both immediately or not directly) any positions within the securities talked about on this article.
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