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Investment Analysis Clubs / Pencils Palace


Subject:  Re: InMode (INMD) Date:  5/9/2020  5:05 PM
Author:  Wjr81 Number:  7303 of 7325

Interested to find someone else looking at INMD.

I found them by accident using a screener during the crash, looking for companies under 1.5B with little to no debt on the balance sheet, growing revenues over 40 percent and that had had a drop of 35 percent or more from 52 wk highs.

Only 2 companies came up and honestly I got so blown away by the opportunity (very much the same sentiment as you... What am I missing?) that I don't even remember the name of the 2nd company (if I remember rightly growth was skewed by a one-off payment). Suffice to say I opened starter position that then became a full size position over the few weeks since.

1st quarter earnings seemed positive, though of course with a lack of visibility. They have kept on all staff and actually made new hires to increase sales staff by about 10 percent.

They sounded very positive about international growth, particularly opportunities in Brazil where they are about to launch (huge plastic surgery market!). They also spoke in cagey terms about 2 new platforms they are looking to launch this year.

They have quite a few celebrities that use their procedures, and it looks to me like a company that may well hit a much higher valuation within a year or two and could even build some brand awareness and brand loyalty before patents run out. Not to mention the possibility of leveraging the consumables side of things once they have the demand and systems in place. A little like ISRG.

One thing I did notice, and this may explain the cheapness of the stock at the moment (I believe they are trading at under 20 x forward earnings with 40 percent revenue growth and 85 percent gross margins!) was that there were not many analysts covering their earnings call.

Sorry for this rambling post, but as you can tell I am bullish this company and think it could easily become a 5x with 5 years (and even that may be conservative) if some things go right for them...
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