Today Alan Lancz recommends a unloved name from the cosmetic surgery sector. The new recommendation is followed by three updates.
Cynosure (CYNO)
from The Lancz Letter
Over the past twenty years Cynosure has become one of the larger companies in the laser- and light-based aesthetic surgical market. The company had the first FDA approved high-end laser for lipolysis and has recently followed that up with being first to market for non-invasive durable cellulite treatments.
Their stock is down with its purchase of Palomar last June as Palomar shareholders sold six million shares that came with the deal. LanczGlobal believes that this presents an opportunity to buy a well positioned, growing medical technology company at a significant discount (approximately 15%) to its peers.
We like management, which has differentiated their product and positioned the company for long term growth. The company has recently rolled out its picosecond technology that is a more efficient and improved tattoo removal procedure.
We strongly recommend purchase into current weakness in the low twenties with our 18-24 month target of over $30 a share as Wall Street recognizes CYNO’s long-term growth potential.
Alan B. Lancz, The Lancz Letter, www.lanczglobal.com, 419-536-5200, October 1, 2013