Why Mazor Robotics Is Tanking Today

News that the Israeli Securities Authority has been conducting searches at the company's office has traders hitting the sell button.

By Brian Feroldi – Updated Jun 8, 2017 at 4:42PM EST

What happened

Shares of Mazer Robotics (MZOR +0.00%), an Israeli-based robotic-surgery company focused on diseases of the spine and brain, fell by 11% in afternoon trading on Thursday.

So what

Mazor released an SEC filing today stating that the Israeli Securities Authority (ISA) conducted a search at the company's office. The ISA is also questioning "certain officers" in connection with an investigation being run by the agency.

Mazor's response to this news was brief: "Mazor has not been informed as to the subject matter of the investigation, nor has it been charged with any wrongdoing. Mazor is cooperating fully with the ISA."

As expected, a number of law firms have already announced their intention to conduct investigations on behalf of shareholders to see if Mazor has misled the public. Given the unexpected news, it's easy to understand why traders are selling off shares today.

Business people sitting around a table, looking concerned.

Image Source: Getty Images.

Now what

Without any additional information, it's hard to know what to make of today's news. It's possible that we could learn a great deal more about this situation tomorrow as CEO Ori Hadomi is scheduled to give a presentation at the Jefferies 2017 Global Healthcare Conference at 8:00 a.m. EDT. While the conference is invitation only, a webcast is going to be published on the company's website.

While this news is certainly unsettling, I'm personally still a believer in Mazor's products and long-term potential. For that reason, I'm content to sit tight until more news surfaces.

Brian Feroldi first starting "investing" -- if you can call trading penny stocks investing -- in 2004. Thankfully, he lost a good chunk of his money early on and realized there was far more to the stock markets than just buying and selling junk. Realizing that he needed help, Brian voraciously read every book on money and investing that he could get his hands on. Thankfully, that included "the Motley Fool's Investing Guide" and he has been investing using Foolish principles ever since. Brian's investing strategy has morphed into a simple three-step process: 1) Find the highest quality companies on the public markets 2) Buy those companies 3) Sit back and let compounding work its magic Brian was lucky enough to be hired at a start-up medical device maker right out of college. However, after sticking with the company for more than a decade he realized that he was spending all of his free time on his true passion -- finding great stocks to buy. Brian struck gold in 2015 when he was hired by Motley Fool to cover the healthcare industry for Fool.com. He has been doing that ever since. Brian currently resides in Rhode Island where he is happily married and is working hard to raise three small kids. Brian's hobbies are playing board games (chess & escape rooms are his favorite), watching his kids play sports, meeting up with friends, finding ways to lower his carbon footprint, and cheering on the Patriots.

TMFTypeoh

@brianferoldi

Why Mazor Robotics Is Tanking Today

What happened

So what

Now what

Read Next

About the Author

Stocks Mentioned

Premium Investing Services