In the most recent interview with Isareli media outlet Biz Portal the CEO of Photomedex (NASDAQ:PHMD) has made several interesting points:
1. "The results will speak louder than words and the shorts will be wiped out"
2. "In the NO-NO business in the U.S. alone, we have the potential, in my opinion, to grow 10X"
3. "The XTRAC business will double in 2013 and then double again in 2014, this is a 93% gross margin business. This means that this business will be at a $40M run rate by the end of 2014 and will have a contribution margin which is similar to our entire consumer business today"
(Link to full interview in Hebrew- http://www1.bizportal.co.il/article/355983)
With two recent deals in the space commanding revenue multiples of 2.5X for Palomar (http://seekingalpha.com/article/1284381-cynosure-s-purchase-of-palomar-is-a-natural-step-in-the-evolution-of-the-aesthetic-laser-light-industry?source=yahoo)
and 4.5X for Obagi (http://www.marketwatch.com/story/valeant-boosts-bid-for-obagi-besting-merz-offer-2013-04-03) in both cases for companies growing less than 10% in 2012 and hardly making any money, one has to wonder for how long will PHMD continue to trade for under 1X Revenues.
Disclosure: I am long PHMD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.