Vince Martin
Long/short equity, value, gambling

Cutera: Is This Time Different?

There are basically two charts that sum up the bull/bear argument relative to aesthetic device manufacturer Cutera (NASDAQ:CUTR). The first is the company's stock chart since its 2004 IPO:

CUTR data by YCharts

The second is a chart of its fundamentals over the same period:

source: author from CUTR filings; 2006 operating profit excludes litigation settlement. 2015 sales based on company guidance for ~$29 million in Q4 revenue, and author estimate of $1.5 million in operating income

Clearly, the trends are somewhat similar - though, at least on a price-to-sales basis, CUTR's multiple has compressed dramatically from pre-crisis levels - and both raise one of the key questions for the stock right now: how much should investors really

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details