Why TransEnterix Stock Tanked Today
Shares of TransEnterix (NYSEMKT: TRXC), an early commercial-stage robotic surgery company, ended today's trading session down another 16.4%. The company's shares have now given back a healthy 22.3% of their enormous gains following the Food and Drug Administration's (FDA) approval of its Senhance Surgical Robotic System on October 13.
This extreme volatility appears to stem from two core issues. First off, TransEnterix needs to raise capital in a big way. Turning to the specifics, the company stated during its second-quarter earnings report that it didn't have sufficient financial resources for the next 12 months -- and that bleak estimate didn't account for the enormous cost of launching the Senhance system in the United States.
Source: Fool.com