One of the stocks that has continued to be on the radar of many investors in recent months is Smile Direct Club (NASDAQ:SDC). Indeed, SDC stock has moved with impressive volatility this summer, having been noted as a key short-squeeze stock in the past.
As we covered previously, Smile Direct Club has been a stock on short-squeeze watch for some time. In mid-September, this stock squeezed from around $5 per share on Sept. 10 to more than $7 per share on the Sept. 17. This move of approximately 50% in just a week indicated that volatility could continue for some time.
Since then, shares have settled back down to the $5 level as of yesterday. However, today’s double-digit increase in SDC stock has reinvigorated investors betting on this stock to squeeze once again to the upper end of this band, or higher.
Let’s dive into the catalyst that’s taking Smile Direct Club higher today.
SDC Stock Higher on Patent Announcement
Today, Smile Direct Club announced the company was granted a patent for the company’s innovative SmileBus concept. This patent is expected to be issued by the U.S. Patent and Trademark Office in short order.
Investors bullish on Smile Direct Club’s product offering will like this news. Having patent protection for the company’s intellectual property helps to build a moat around the company’s offering. With other competitors likely to attempt to encroach on Smile Direct Club’s lead, any sort of competitive edge is likely to be welcome moving forward.
This SmileBus business has boomed since launch in 2018. The company has since launched a similar concept in the U.K. last year. Accordingly, investors bullish on the ability of Smile Direct Club to continue growing at a rapid pace have looked to new programs such as these to bring new paying customers into the fold.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
