While Staar is an attractive long-term growth candidate, short-term they have a few hurdles to jump: FDA approval for ICL in the US will depend upon the positive review of the clinical trials. This will take the better part of the next couple of years. Secondly, there are other therapies for correcting myopia, from radial keratotomy to newer procedures that lift the cornea and reshape the underlying stroma. Both show good results. Thirdly, implantable lens' will not be well tolerated by all. I would think those with insipid diabetes as less likely to recieve this procedure considering the infection rate among that group; I may be mistaken, however. Finally, companies in a stock market run as long as this tend to become a bit pricey. I think, however, at 2-2.5xs forward sales the stock would be attractive. It has many things going for it.
It has good management. They are relatively young, well credentialled in their respective fields, and have their "feet to the fire" through extensive stock ownership upwards of 30% (incl. stock options). Additionally, the company has repurchased a small number of the outstanding common over the course of last year. This indicates management is looking out for its shareholders.
They made a good bet when they hired the Australian, Feingold. He's brought patentable technology with him, and seems to be a smart cookie. Also, their CEO is from a very cursory inspection, a good sales man.
In conclusion, while they are not the only kid on the block, the balance-sheet is in good shape and management is competent. I have little doubt their ICL will bear fruit, but they are not the only kid on the block.
Yours, T.V.H. |
