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

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