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Stocks A / Align Technology, Inc.


Subject:  Re: Fool's Take On ALGN Date:  6/1/2005  11:47 AM
Author:  VealOssoBucco Number:  38 of 66

I think that ALGN truly is a Hidden Gem. I just bought in today around $7.30 per share. The stock has recently come down from the $20's to $7-8/share because the founder left in a dispute and started a competitor. The PE 0f 43 looks high, but not when you consider the company's growth, and the fact that the business is currently investing heavily in SG&A to get the product out there. So while the net profit margin is a meager 5.5% because the selling expenses are high, gross margin remains a robust 76%.

Insiders own 12% of the shares.

From what I have heard, the new competition is not a major threat. If you talk to a dentist or or orthodontist, they will tell you "people come in asking for the Invisalign product" ...even though it's expensive.

It's also financially clean, with free cash flow and $1/share in net cash.
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