MabCure, Inc. (OTC:MBCI) Getting Down from the Promotional Peaks
04 Nov 2010

MabCure, Inc. (OTC:MBCI) stock has just recently received its first costly promotions for this year, but today’s trading session starts with a considerable downward correction, suggesting that the price appreciation might be getting over.

Today MBCI share price has so far lost 3.70% of its value during the first hour of trading, losing all of the value gained during yesterday’s session. Yesterday, the stock received still above the average interest from traders as over 678,000 shares were traded and closed at $0.81 for a share, a modest increase from the previous close.

The latest event around MabCure seems to be an aggressive and costly promotional campaign for its stock, disclosed on Tuesday this week. It is not mentioned when the starting date of the promoting was, but the chart shows that MBCI started suddenly gathering trading volume and market value without any announced corporate developments that could cause such a rush.

The promoters have received $850,000 for distributing the advertising materials, a colossal amount compared to the tangible value of the company with no revenues ever and already one failed business model left behind. $18.5 million from the latest reported $18.9 million total assets are in the form of intellectual property. Such intangible assets are usually not considered by the market when evaluating a business, because of their questionable value.

Thus, the share price surge within the last two weeks does not seem to coincide with the announced in the middle of October collaboration agreement with several universities to expand MabCure’s diagnostic data base and to open the way for clinical studies in Europe and in the United States. It has not been reflected in the company’s SEC filings and got almost no reaction on the market.

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