What happened

Shares of Nano-X Imaging (NASDAQ:NNOX), the Israeli X-ray machine maker with the novel business idea of giving its products away for free (and then taking a cut of the revenue when doctors use the machines to take X-rays), is back in investors' favor again. Over the past 10 days, shares of Nano-X have surged 79% -- including a big 7% jump today as of 2:20 p.m. EST.

So what

Why is Nano-X doing so well today? To learn the answer, you first have to go back in time a couple of months to mid-September, when Citron Research published a report branding Nano-X as "Theranos 2.0" and a company that not only "has never published any data showing their machine's images compared to images from a standard CT scanner," but has actually never even showed investors that it has a machine at all.

These and similar accusations from the short-seller devastated Nano-X's stock over the summer, but on Thursday starting at 11:30 a.m. EST, Nano-X will attempt to refute all of the above by hosting "a live demonstration that will showcase the Nanox digital x-ray source tube and a range of 2D and 3D imaging applications performed by the Nanox.ARC at the 2020 Radiology Society of North America Virtual Annual Meeting."  

Cartoon professor with a pointer explains why a stock arrow is rising

Image source: Getty Images.

Now what

Assuming the demonstration goes well, Nano-X will debunk the most damaging allegations raised by Citron. (Although I suspect questions about whether Nano-X, a company without profits or even revenue, is really worth its $3 billion market cap may remain.) It may then follow up the debunking with good news in an "investor webinar" scheduled to begin at 2:30 p.m. the same day -- an event that may excite investors even further, and drive Nano-X stock even higher.

Even higher than the 79% gains the stock has enjoyed over the past 10 days? Tune in Thursday and find out.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.