Syneron Medical Ltd. (ELOS)

Rated 5 stars.

bravobevo

Good long call on big dip today. No debt and a good cash position make this one look like a survivor.

Great growth and future earnings.

Medical technology good long-term value.

Sells at cash value. Are you kidding?

Deep value play for a number of prominent investors has become an even deeper value after recent earnings miss. Sub $10 looks like good entry point - technicals suggest we are nearing short-term bottom, while value metrics seem compelling - debt free, 60% of market cap in cash, small premium to book. Likely dead money for a while, but solid 3-5 year recovery prospects from current level.

http://www.fusioninvesting.com/blog/2008/09/guess-this-company/
A who’s who of the value investing world and numerous newsletters publishers are all hanging their hats on this company.
- Seth Klarman of Baupost Group and Royce & Associates to name two.
- Brandywine, Dreman, Complete Growth Investor, Motley Fool Rule Breakers to name a few more.
- Whitney Tilson or at least Tilson Dividend Fund, which is advised by Whitney, but managed by Centaur Capital (i.e. two ex Fools, Zeke Ashton and Matthew Richey) to name another.

They all scream the same thing, the sub $15 stock of this company is worth at least $25.

The company might have a stagnant price in the short term, but should outperform over a longer time frame. They've been consistently profitable in an industry where most products fizzle out. Their margins have been declining, but it's mainly the result of increased R&D. Their main product still retains VERY healthy margins. Also, the company has about $50 million in cash and equivalents and around $130 in marketable securities. So taking those measures out, the actual on-going business value of the company is only trading at about 6 X earnings.

Aesthetic medical products like Syneron's offerings are benefiting from demographic shifts and increasing personal wealth for women. It's a good market to be in. Also, the company currently has about 50% of its sales in North America, so I think there are several other regions where it could experience high growth in coming years.

Technical bottom, Fantastic balance sheet, net income to sales ratio is high (20 to 50%), no capital needed to grow, tiny depreciation charge, some great and famous individual investors are accumulating it. What I call a growth company at a value price.

This company has solid fundamentals. Low Price to book ratio. Low debt to equity and solid earnings. In this bear market you need whatever good companies you can find.

Med Lasers

You gotta love a BEAR market. There are so many great stocks trading at levels I usually only dream about. Not much of a downside here. Expect a minimum of a 50% return, but closer to 75-100%. Dont b fooled fools, this is know value trap. 0 debt and mgmt buying back shares.

I've held this stock since before the October plunge...I do think it was overdone. The company still seems well-managed. The larger trend of an aging population bodes well for its product line, though the near-term economic uncertainty might make customers a bit hesitant.

because I am putting my money where my mouth is.

Important to note that insurances are covering/reimbursing certain procedures!

Safety & hi growth potential

Full Syneron Analysis:
http://solidstocks.blogspot.com/2008/02/long-case-for-syneron.html

Excerpt: "Investors rewarded Syneron's sterling growth in its infancy with an inflated share price and amplified expectations. Since, competitive pressures that have slowed sales and earnings growth and an increasingly difficult macroeconomic environment that has raised concern over consumer demand for expensive procedures have dampened investor sentiment regarding Syneron. Just as investors overcompensated for Syneron's successes on the ride up (shares traded for over $40 in 2005 after trading for $11 the previous year), investors have overcompensated in response to Syneron's recent performance, bidding down shares to $14 after trading for $27 less than a year ago. Meanwhile, the company's continued solid performance "where it counts" received scant attention. Syneron has gained market share and grown cash flow while competitors fizzled. Indeed, Syneron's recent 4Q 2007 report, showed a 21M cash from operations figure, lifting shares up to today's price ($16.19)."

The description of this company is provide aesthetic medical treatments. This has been a huge a big deal in the past 10 years. I think as baby boomers get older, they will use this more and more.