Cramer Meltdown: Get Back in the Truck and Buy Syneron (ELOS)
Written by: Aaron Katsman | August 7, 2007
By Aaron Katsman
IsraelNewsletter.com
While James Cramer was in the midst of his meltdown this week, one of his favorite stocks, Syneron(ELOS), came through with great earnings. As I have mentioned after their last report (a refined way of bragging), the company has gone from much hyped with little to show, to a serious company that is executing their business model efficiently. Syneron designs and sells medical products based on their own proprietary Electro-Optical Synergy, or ELOS technology. They promote their non-invasive procedures, like wrinkle reduction, hair removal, and skin rejuvenation. If all the global warming hysterics are right, just business from wrinkle reduction generated from sunburns will mean huge profits for the company.
Back to reality, this was a strong quarter for the company. CEO Doron Gerstel said, “Syneron’s sales continue to rise at a significantly higher rate than the growth of the market.” He went on to add,”In the second half of the year, we believe that the superior results of ELOS technology, as well as our unique customer care approach, will further strengthen Syneron’s position as the clear leader in our medical-aesthetic market segment. We are, therefore, increasing our guidance to $146 million, which is 25% revenue growth for the full year of 2007, from our prior guidance of 20% revenue growth for 2007.”
As baby boomers continue to age (say it ain’t so) with their high levels of disposable income, there is no question that they are looking for ways to recapture their youthful appearance. Syneron is poised to provide that solution and as such, make it a very interesting long-term baby boomer play.
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Disclosure: Author’s fund is long ELOS as of 8/07/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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