Candela Corp (CLZR)
The Company is engaged in the development and commercialization of aesthetic laser systems that allow physicians and personal care practitioners to treat a variety of cosmetic and medical conditions.
Recs
The technology is stale, company has nothing new and exciting.
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Candela has been in a long slide that may finally be ending. At their most recent investor presentation they seemed (finally!) to be on the cusp of multiple new product inttroductions, which they've grossly underperformed on historically. They also have $50 million of cash (equates to $2.00 of their stock price) and no debt, the largest market share in the laser market, and a global sales network. They've announced an increased stock buyback plan equal to 10% of shares outstanding. And they are "in play" by a Canadian activist investor and JP Morgan, who together have accumulated around 23% of the stock (at a basis much higher than today's stock price). So it seems to me that Candela will either get their own act together soon, or be forced to do so by investors. A wild card is their ongoing patent lawsuit with Palomar, but that seems already reflected in the stock price. I'm buying...
Recs
CLZR was sued by PMTI on a hair removal patent that has not been tested in court. Both sides have deep pockets & good attys. CLZR's patent suit in ED Texas (wrinkle removal) will go to trial first, Sept 2008. These 2 cases could eat up $2-3 million in fess per side in fees & expenses, IF, they do not go to war. CLZR has a good defense to PMTI's claim but the risk loosing can not be ignored.
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Stock will continue to struggle until the patent issues are put behind it
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Good growth and developments continuing into Canada.
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Little known small cap with great fundamentals. Undervalued, given it's strong top and bottom line growth rates.
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solid growth
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The CEO is a habitual liar, which is never a good thing. They do the same thing that Palomar does, except Palomar does it better. All you have to do is look at EPS growth for the pas few quarters and you will see why Candela is going down.

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