Get Back in the Truck and Buy Syneron

While James Cramer was in the midst of his meltdown this week, one of his favorite stocks, Syneron (ELOS), came through with great earnings. As I mentioned after its last report (a refined way of bragging), the company has gone from much hype with little to show, to a serious company that is executing its business model efficiently.

Syneron designs and sells medical products based on their own proprietary Electro-Optical Synergy, or ELOS technology. It promotes its non-invasive procedures, like wrinkle reduction, hair removal, and skin rejuvenation. If all the global warming hysterics are right, then just business from wrinkle reduction generated from sunburns will mean huge profits for the company.

This was a strong quarter for the company. CEO Doron Gerstel said,

Syneron’s sales continue to rise at a significantly higher rate than the growth of the market. In the second half of the year, we believe that the superior results of ELOS technology, as well as our unique customer care approach, will further strengthen Syneron’s position as the clear leader in our medical-aesthetic market segment. We are, therefore, increasing our guidance to $146 million, which is 25% revenue growth for the full year of 2007, from our prior guidance of 20% revenue growth for 2007.

As baby boomers continue to age (say it ain’t so), and with their high levels of disposable income, there is no question that they are looking for ways to recapture their youthful appearance. Syneron is poised to provide that solution and as such, make it a very interesting long-term baby boomer play.

Disclosure: The author’s fund is long ELOS as of August 7, 2007.

ELOS 1-yr chart:

Comments

[DaveinHackensack]

Just picked up some at $15.20 this week. Looks less expensive here, particularly considering the cash horde.