Find Upside In These Dental Appliance Makers

Includes: ALGN, BIOL, YDNT
by: Neoclassical Economist

It is never easy to make money, especially in the stock market, as the market typically is efficient and stocks are priced appropriately. However, there are those exceptions where some stocks simply fall off the radar and hence provide an opportunity to buy at attractive prices. Perhaps these stocks below fit that billing.

Young Innovations (NASDAQ:YDNT), together with its subsidiaries, engages in the development, manufacture, and marketing of supplies and equipment used by dentists, dental hygienists, dental assistants, and consumers. This company makes a lot of those disposable supplies that dentists use often, such as gloves, masks, and disinfectants, and sports some great margins in the process. Moreover, the company now has products virtually worldwide -- in Central America, South America, Europe, and the Pacific Rim -- allowing for some nice geographical diversification with this stock. At $29.10/share and well below the 52-week high of $33.40, this stock presents a good entry point. It even pays a small dividend of less than 1%.

Align Technology (NASDAQ:ALGN), together with its subsidiaries, engages in the design, manufacture, and marketing of the Invisalign system for treating malocclusion or the misalignment of teeth; and the provision of 3D digital intra-oral scanners, and computer-aided design and computer-aided manufacturing (CAD/CAM) restorative models for the orthodontic and dental industry worldwide. This company makes the higher-priced instruments dentists need to perform their work and apparently from their most recent quarterly earnings, business has been doing well. Look for this company to continue moving higher as it raised guidance and implemented a $150M stock buy-back program.

White Smile Global (WSML.OB) is a vertically integrated company with a core focus on the over-the-counter tooth whitening and oral health industry. White Smile products are part of a large portfolio of patent-pending intellectual property centered on cutting edge technology and next-generation science. The company has multiple offices worldwide, with its headquarters in Miami, Fla. This company has a potentially strong catalyst, as it just completed its patent-pending oral health system this past week, and provides a low-cost alternative. This can potentially be pretty profitable, as many people are visiting the dentist less frequently, as money is scarce and fewer people have dental insurance. The stock is up 15% today on news of its new whitening product. Expect lots of volatily from White Smile going forward, as new positive announcement can spike the price very sharply. This is worth keeping an eye on.

BIOLASE Technology (BLTI), a medical technology company, develops, manufactures and markets lasers and related products focused on technologies for improved applications and procedures in dentistry and medicine. BLTI also bills itself as the world's leading dental laser company. It was trading well under $1 a few years ago, until some of its patents gained FDA approval and resulted in some big revenue gains. Now the stock is sitting at over $3.60/share, greatly rewarding shareholders who saw the value in its patents, and still showing some great value, as it has year-over-year revenue growth of 105%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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