Remember that song by Carly Simon, “You’re So Vain?”
I heard it on the radio the other day and thought it would be good song in an ad campaign for Palomar Medical Technologies (PMTI).
Palomar sells lasers and pulsed light systems for popular cosmetic treatments that remove age spots, freckles, acne, unwanted hair, and even that old, fading college tattoo.
PMTI shares have taken a beating recently, as American consumers find themselves financially strapped. (I’m guessing most Americans are paying their adjustable-rate mortgages rather than opting to have the old Greek letters removed.)
In fact, the excellent run of gains in the cosmetic medicine industry has slowed dramatically this year, prompting Wall Street to turn against many of those stocks and drive their valuations below realistic levels. In the process, the Wall Street created an excellent buying opportunity with Palomar.
Though the company believes the short term will remain challenging (40% of its sales staff has only been with the company for less than a year, and this has hampered sales levels). PMTI’s long term outlook is as bright as ever.
Palomar has about $120 million in cash and available-for-sale investments and absolutely no debt. But here’s why I really love this stock–PMTI recently received FDA approval for an over-the-counter light-based hair removal system, which it plans to roll out with distribution partner, Proctor & Gamble-Gillette (PG).
Can you imagine?
Removing those old college tattoos in the privacy of your own home? This home laser hair removal system will surely be a huge hit with aging baby boomers who have been known to get these kinds of treatments in record numbers (see also, “LCA-Vision, Inc. (LCAV): Seeing is Believing“).
After all, just like Carly Simon says, we are so vain…
Palomar will be focusing sales efforts on physicians willing to invest in their practice with the latest laser technology, and has instituted a mentoring and training program that is beginning to show direct sales results.
Get in on this stock early…and then go get that tattoo removed.
This article was written by Jamie Dlugosch, editor, InvestorPlace.com. For more actionable insights likes this, go to: www.InvestorPlace.com.
