When UBI close at 35.5 cents on May 9th few would have suspected...

When UBI close at 35.5 cents on May 9th few would have suspected their next report to the market would cause the stock to drop to a low of 13.5 cents on May 16th. At least one large insto decided to sell its stock taken in the placement at 90 cents all the way down to 13.5 cents all because Johnson & Johnson have an option of buying the IP property to the glucose strips after $45m of royalties for a multiple of 2-3 times previous 4 quarter sales.
Given the current market cap & the fact UBI still has approximately $38 million in royalty sales before this option can be triggered & the FDA have noted competitors strips no up to their quality this represents excellent value at these levels.
The real bonus is the arrangement with another major in Siemens being hopefully released to the market hopefully in the third quarter this year. This product has been delayed approximately 12 months not due to UBI but being assured of the accuracy of the meter reading device being used with this strip.
Mirco caps would give their eye teeth to have commercial arrangements with a major player yet UBI has 2 such arrangements. It would not be hard to justify a MC north of $100m so this stock has the potential to be a huge multi bagger for those with long term patience, but in the short term it also offers quick returns as soon as the selling dries up & the company gains another insto buying order in the stock.
Interestingly both Morgan Stanley & Macquarie traded the stock yesterday so that may not be too far way from happening.
Regards
Buffett
PS I do need to disclose I hold 2 million plus purchaed in the dump so I have a good reason to believe in this stock both short term & long term