STAA

Staar Surgical Co.

Healthcare


Presented:08/15/2022
Price:$111.58
Cap:$5.33B
Current Price:$32.12
Cap:$1.58B

Presented

Date08/15/2022
Price$111.58
Market Cap$5.33B
Ent Value$3.38B
P/E Ratio163.94x
Book Value$6.23
Div Yield0%
Shares O/S47.81M
Ave Daily Vol443,393
Short Int12.89%

Current

Price$32.12
Market Cap$1.58B
STAAR Surgical Co. engages in the development, manufacture, production, marketing, and sale of implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. It specializes in refractive and cataract solutions. Its products include intraocular lens and implantable collamer lens. The company was founded in 1982 and is headquartered in Lake Forest, CA.

Publicly traded companies mentioned herein: Align Technology Inc (ALGN), STAAR Surgical Co (STAA)

Highlights

The presenter is short shares of STAAR Surgical Co (STAA), a $5B market cap company that designs, develops, manufactures, and sells implantable eye lenses. It is best known for its EVO products, such as EVO Visian ICL and EVO+ Visian ICL, that provide refractive and cataract solutions for patients. The concept is similar to a cataract procedure that uses an intraocular lens to correct for myopia as an alternative to LASIK. However, EVO procedures are usually 50% - 100% more expensive, invasive, and take longer than LASIK. Given these factors, as well as macroeconomic tailwinds inflecting and his belief that adoption will disappoint, the presenter sees downside from the current ~$100 share price to $35 - $40. The stock has had a big run into / after earnings, and currently trades at 16x consensus forward revenue and 85x consensus forward operating profits. He sees a compelling entry point for a short position as the stock has run its course and will face multiple headwinds in the coming quarters.

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Idea Discussion

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