It's been quiet on the blog these days, but this weekend I plunged in with renewed energy into the process of updating my portfolio. Several stocks that I would like to buy on Monday: Autoliv, Volcom, Cynosure, Expedia, Men's Warehouse, maybe Crane? Other things that look interesting: managed care stocks, but I have yet to finish reading the managed care report.
Lets start with Cynosure: it makes medical devices for aesthetics market. They have 8% share of the market that's growing at 20%+ driven by desire of everyone to look younger, and they have been outselling the competition. The company was founded 20 years ago, but the growth really took off in 2003-2004. El.En bought 60% of Cynosure in 2002 (Italian conglomerate with focus on light tech), currently holding 30% of the company. Why have they been selling???? They're the ones that manufacture the product, can they decide they're better off with doing it themselves.
The machines that the company manufacturers cost around $100K. Penetration among dermatologist is estimated to be high - around 75%. It's tricky to know if the buying will just fall off the cliff at one quarter, which is concievable. Hard to see stock declining much futher but I see how the stock can sit at current levels for a while. I'm passing
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