Jim Cramer on tonight's Mad Money was discussing a stock that was taken off the table after it ran huge. Cramer thinks that Syneron Medical Ltd. (NASDAQ:ELOS) really has the laser we're all looking for. He said he swapped out of it before in favor of Palomar Medical Technologies, Inc. (NASDAQ:PMTI), but since it fell from $40 to under $25 it is cheap. There is a catalyst coming next month that could reverse the stock drop after two bad earnings misses from higher expenses. ELOS rolls out a dental laser next month that isn't just cosmetic. This one does the same thing as drilling teeth and there are 200,000 dentists versus 18,000 dermatologists.
ELOS was up a mysterious 6.8% today to $25.70 on 4-times normal volume. Did one of Cramer's cronies doll out a stock tip into people's Christmas stockings or in place of Hanukkah dradles today? This stock is up another 4.4% in after-Cramer hours.
Cramer said rumors were out there today that the company would be acquired by Allergan, Inc. (NYSE:AGN), so that is his explanation for the run today. He thinks the buyer could be anyone since the company has only a $700M market cap. He thinks the worst is over. He nailed it once and said to take profits, but now he wants you back into ELOS.
Cramer goes back to an old winning laser pick
Posted Dec 20th 2006 6:50PM by Jon Ogg
Filed under: After the bell, Analyst reports
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Reader Comments (Page 1 of 1)
12-21-2006 @ 8:50AM
Joseph C. Russell said...
A wide variety of IPL (intense pulsed light devices), lasers, and infrared therapies have been on the market for several years. Palomar is not a quantum leap in these therapies and certainly not a transformational one. There are many competitors such as Lumenis, Syneron, Cutera, etc. with similar devices and wavelengths none of which are transformational. The idea that Palomar has created something something radically different in this realm is therapeutic realm is just not true. It is a useful and moderately beneficial treatment for facial tightening, hair removal, and pigment removal as many of the other devices are.
Recent news has reported that P&G has an interest in Palomar for a light-based hair removal system that can be purchased and used at home. I have serious reservations that this will ever come to fruition as light based hair removal (IPL or Laser)is potentially dangerous and can cause depigmentation, burning, and scarring leading many states to render this treatment a "physician only" use.
As a user of such devices, my personal opinion is that I would buy this stock based on valuations and track record to date and not on speculation that something "new and different" is in this product.